WashingtonHB 25232025-2026 Regular SessionHouse

Concerning the community reinvestment program.

Sponsored By: Kristine Reeves (Democratic)

Signed by Governor

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Bill Overview

Analyzed Economic Effects

6 provisions identified: 4 benefits, 0 costs, 2 mixed.

Small business grants stay, loans end

Community reinvestment funds support small businesses and entrepreneurs through grants, financial literacy training, and other help. The law removes authority to use this funding for loans. It does not set grant amounts or guarantee businesses an award.

Agricultural help loses its date restriction

Community reinvestment funds can support agricultural and economic services for historically marginalized communities. The law removes the prior July 1, 2025 start-date restriction. It does not set service amounts or individual eligibility rules.

Communities help guide grants and planning

Grant distribution must involve organizations run by and for the communities they serve. It must follow the governor’s order on consultation with federally recognized Indian tribes. The Office of Equity must review and update the plan with Commerce and community organizations at least every five years. The first update is due in 2032 and must use research developed and carried out with communities. Updates must cover funding recommendations, program guidelines, distribution rules, long-term economic benefits, monitoring, and evaluation.

Community grants cannot fund covered insiders

Commerce must bar grant recipients from giving grant money to an officer who has an interest in the organization or receives compensation from it. The ban also covers that officer’s family members. It covers businesses and nonprofits the officer owns or manages.

More providers can seek community grants

Free specialized-service providers can apply statewide, beyond regional funding limits, when fewer than five organizations statewide offer those services free. For free specialized legal services, groups not run by and for affected communities can qualify when fewer than three providers exist statewide. They need a support letter from at least one organization run by and for the affected community. They must provide up to 15% of grant funds to supporting community organizations for outreach, referrals, and oversight. They must report community impact and client demographics to Commerce each year; grants are not guaranteed.

Community funding gets minimums and caps

Each funding strategy must receive 15% to 60% of total distributions in each two-year state budget period. The five strategies cover wealth-building, legal help, violence prevention, reentry services, and agricultural and economic help for historically marginalized communities. The reinvestment plan, Office of Equity, and Commerce can recommend a different split to avoid unused funds. They can also recommend a different split to prevent major limits on an eligible community’s access. These shares do not set household payments.

Sponsors & Cosponsors

Sponsor

Kristine Reeves
Democratic • House

Cosponsors

Brandy Donaghy
Democratic • House
Edwin Obras
Democratic • House
Lauren Davis
Democratic • House
Lisa Parshley
Democratic • House
Mia Gregerson
Democratic • House
Natasha Hill
Democratic • House
Sharon Tomiko Santos
Democratic • House
Shaun Scott
Democratic • House
Timm Ormsby
Democratic • House

Roll Call Votes

All Roll Calls

Yes: 133 • No: 12

Senate vote • 3/4/2026

3rd Reading & Final Passage

Yes: 45 • No: 3 • Other: 1

House vote • 2/16/2026