Washington sets funding ranges for community reinvestment grant programs

The law directs community reinvestment account funds across five service areas, each generally receiving 15 to 60 percent of the total distributed in a two-year budget period. The areas are economic development, legal help, reentry services, violence prevention, and agricultural and economic support for historically marginalized communities. The community reinvestment plan, the Office of Equity, and the Department of Commerce may recommend another allocation to avoid leaving funds unused or materially limiting access for an eligible community. These rules take effect July 1, 2027.

The Department of Commerce must bar grant recipients from distributing grant money to specified insiders and related organizations. The rule applies to organizations receiving grants from the community reinvestment account. The ban covers an officer with an interest in or compensation from the recipient, that officer’s family member, and a business or nonprofit owned or managed by such an officer. This rule takes effect July 1, 2027.

The Office of Equity and the Department of Commerce must review and update the community reinvestment plan with community organizations. The partnership includes organizations serving and led by affected communities. Updates must use a community-based research approach and include funding recommendations, program guidelines and distribution, long-term economic benefits, monitoring, and evaluation. The first update is due in 2032; later updates must happen at least every five years.

The Washington State Institute for Public Policy must study community reinvestment funding and report its findings to legislative committees. The study examines how funds were distributed and used, and their regional effects. Commerce must provide services for the study within the appropriations provided for the community reinvestment program. The Institute may consult agencies and organizations that received funds or were eligible but did not receive them. The report is due by June 30, 2027. This study section expires June 1, 2028.

A work group must prepare a plan and recommendations for the Office of Equity and Commerce to jointly administer the program. The plan reviews agency roles and recommends an administrative framework for joint administration. The group includes lawmakers from both major caucuses in each chamber, including members of caucus groups representing minority communities, as well as agency representatives and up to six optional members. The recommended framework is to take effect before July 1, 2027. The work group section expires June 30, 2028.