SHB 1057
In CommitteeHouse
Access to federal funds
Promoting economic development by increasing support for local communities to access federal funds.
This status may be delayed. See Action History below for the latest updates.
How does a bill become law?
- Introduced: The bill is filed and assigned a number.
- Committee: A subject-matter committee holds hearings, takes public testimony, and decides whether to advance the bill.
- Floor Vote: The full chamber (House or Senate) debates and votes on the bill.
- Opposite Chamber: The bill repeats the committee and floor vote process in the other chamber.
- Governor: The Governor reviews the bill and decides whether to sign or veto it.
- Signed: The bill has been signed into law.
AI Analysis
This bill creates tools and funding to help Washington communities—especially rural and distressed ones—compete for federal economic development grants by providing state matching funds, grant-writing support, and centralized resources. It establishes a new state account to supply matching dollars and requires the Department of Commerce to streamline access to federal grant opportunities and track outcomes.
- Establishes a new state account to provide matching funds for federal economic development grants, with priority for rural, frontier, and distressed areas.
- Expands the state’s grant-writing assistance program to help local communities recruit, hire, and retain grant writers, with priority for distressed areas.
- Creates scoring criteria to prioritize state matching fund awards based on job creation, number of households/businesses affected, and rural/frontier status.
- Requires the Department of Commerce to maintain an online inventory of federal and private grant opportunities and provide a standardized letter supporting federal grant applications that confirms availability of state matching funds.
- Expands the fundhub.wa.gov website to include federal economic development grant opportunities by July 1, 2026, and requires biennial reporting on matching fund use and federal grant success starting December 31, 2027.
Who is affected
- Rural, frontier, and distressed local governments and economic development organizations — Rural, frontier, and distressed communities that lack the local tax base to provide matching funds for federal grants; they gain access to state matching dollars and grant-writing support to help them compete for federal funding.
- Eligible entities such as cities, counties, tribes, schools, nonprofits, and small businesses — May receive up to 100% of required federal match (or up to $500,000 for distressed areas), and can use state support to improve their chances of winning federal grants.
- State agencies and economic development partners (e.g., ports, chambers of commerce, workforce boards) — Will benefit from improved access to federal funds through state-provided grant-writing assistance, scoring criteria that prioritize rural and distressed areas, and a centralized resource hub for grant opportunities.
- Washington State Legislature and Governor’s Office — Will receive annual reports and biennial updates on state matching fund usage and federal grant success, informing budget and policy decisions.
Pro/Con Analysis
Stronger case for benefits
Potential Benefits (5)
The bill allows distressed areas to receive up to 100% of required federal match (or up to $500,000), directly addressing the core barrier—lack of local matching funds—that prevents rural and low-income communities from competing for federal grants. This is a targeted, needs-based intervention that enables communities with the least fiscal capacity to access federal funds that could fund broadband, housing, or infrastructure projects benefiting everyday residents.
Local GovernmentPeopleRef: Sec. 4, Sec. 3(6)(d)The bill expands grant-writing assistance with priority for distressed areas, helping local governments and nonprofits that lack staff or expertise to navigate federal grant applications. This reduces a major structural barrier to federal funding access, especially for small towns and tribal nations that cannot afford professional grant writers.
Local GovernmentPeopleRef: Sec. 2(1)The bill requires the Department of Commerce to consult with federal agencies (e.g., SBA, Labor, Agriculture) to improve Washington’s success in federal grant applications. This coordination can increase the overall federal funding Washington receives, which flows back to local communities for services like broadband, workforce training, and infrastructure—directly benefiting everyday residents.
Local GovernmentPeopleRef: Sec. 3(2)(d)The requirement to issue standardized letters confirming state matching fund availability within 5 business days strengthens the credibility of local applications and reduces administrative friction—especially helpful for small governments and nonprofits that lack legal or federal affairs staff.
Local GovernmentPeopleRef: Sec. 3(4)The biennial reporting requirement (starting 2027) on matching fund use and federal grant success creates transparency and accountability, enabling future legislatures and communities to assess whether the program delivers equitable outcomes and adjust funding or design accordingly.
Local GovernmentLean peopleRef: Sec. 4
Potential Concerns (5)
The bill creates a new state account for matching funds but relies entirely on legislative appropriations—no automatic funding is required—meaning rural and distressed communities may still be unable to access matching dollars if the legislature underfunds the account in future sessions. This structural underfunding risk disproportionately harms local governments with limited tax capacity that cannot self-match, undermining the bill’s stated goal of equitable access.
Local GovernmentPeopleRef: Sec. 4, Sec. 2(1)While the bill allows up to 100% matching for small businesses and nonprofits in distressed areas, the $500,000 cap for distressed areas and the requirement to win federal funds *first* means only communities already positioned to compete for large federal grants (often those with existing grant-writing capacity or consultants) benefit significantly. Many small businesses and rural entities lack the staff or expertise to navigate complex federal applications, limiting real-world access despite the intent.
Business & EmploymentPeopleRef: Sec. 3(6)(a)-(d)The bill requires the Department of Commerce to solicit input from ports, chambers of commerce, workforce boards, and the governor’s office when prioritizing federal funds—groups that often represent larger economic interests and may overshadow smaller, less-organized rural or community-based organizations in the prioritization process.
Local GovernmentRef: Sec. 3(5)The bill allows up to $100,000 in matching funds for projects with *no required match*—a provision that could disproportionately benefit wealthier local governments or entities that can self-fund or attract private capital, since they’re more likely to qualify for grants where no match is required (e.g., some infrastructure or innovation grants).
Local GovernmentRef: Sec. 4, Sec. 3(6)(c)The bill requires grant recipients to report on state matching dollars acquired and grant-writing efforts in annual reports, but does not mandate outcome-based metrics (e.g., jobs created, income gains), limiting accountability and making it difficult to assess whether the program delivers tangible benefits to everyday Washingtonians.
Local GovernmentRef: Sec. 2(3)
Who Is Most Affected
Rural and distressed local governments (e.g., small towns, counties, tribes) gain access to state matching funds and grant-writing support, enabling them to compete for federal grants they otherwise couldn’t afford. This directly benefits residents through improved infrastructure, broadband, and job programs—but only if the legislature adequately funds the account.
Small businesses and nonprofits in distressed areas can receive up to 100% of required federal match, potentially unlocking major federal investments. However, success depends on their ability to navigate complex federal applications—a barrier for many without grant-writing staff.
State agencies (e.g., Commerce, Ecology) gain enhanced coordination capacity and leverage federal partnerships, but may face increased administrative burdens in reviewing applications and reporting outcomes. No direct cost or benefit to state operations beyond improved grant success rates.
Ports, chambers of commerce, and workforce boards are consulted in prioritization and may benefit from increased federal funding for regional projects. However, they are not guaranteed access to matching funds and may overshadow smaller community groups in the process.
The Washington State Legislature gains data on federal grant success and matching fund usage, improving future budget decisions. However, the bill creates no automatic funding, so future legislatures may underfund the account, undermining the program’s effectiveness.