HB 1845
In CommitteeHouse
Cash assistance payments
Concerning payment standards for cash assistance programs.
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 updates how Washington calculates cash assistance payments for programs like TANF, refugee assistance, and basic food benefits. It requires the state to base payment standards on actual household costs — including things like internet, child care, and health care — and sets new rules to ensure payments keep pace with inflation, while limiting annual increases to 3%.
- Requires the Department of Social and Health Services (DSHS) to set updated standards of need each fiscal year for cash programs, based on actual living costs and inflation.
- Mandates that standards include allowances for shelter, food, transportation, clothing, child care, health care, cell phone, and internet — not just basic food and shelter.
- Requires DSHS to use a nationally recognized standard (by July 1, 2022) as the base for annual updates to ensure standards reflect current costs.
- Sets a minimum payment level of 16% of need or the prior year’s payment level — whichever is greater — for TANF, refugee assistance, and basic food cash benefits.
- Limits annual payment increases to no more than 3% per fiscal year, even if need rises more.
- Protects Supplemental Security Income (SSI) recipients by ensuring state supplements remain at least at the federal minimum level.
Who is affected
- Families receiving TANF — Families with children who receive Temporary Assistance for Needy Families (TANF) — a state-run cash aid program — may see changes in how much aid they receive, based on updated standards that better reflect current living costs.
- Refugees receiving refugee cash assistance — Refugees in Washington who receive cash assistance through state programs may benefit from updated payment standards that more accurately reflect housing, food, and other essential costs.
- Adults receiving basic food and cash benefits — Low-income adults without minor children who qualify for basic food assistance (formerly known as Food Stamps) and related cash benefits under the Basic Food Program may be affected, as the bill includes benefits under RCW 74.62.030 in the updated standards.
- SSI recipients — People receiving Supplemental Security Income (SSI) — a federal program for disabled, blind, or elderly individuals with low income — are protected from reductions in state supplements, ensuring they still receive the federally required minimum.
Pro/Con Analysis
Potential Benefits (5)
Explicitly requiring standards to include internet, cell phone, child care, and health care out-of-pocket costs aligns assistance with modern household budgets—especially critical for working parents and people with disabilities—reducing financial strain and improving access to jobs, education, and care.
FinancialPeopleRef: Sec. 1(2)(a)Mandating use of a nationally recognized standard by July 1, 2022, and annual updates tied to inflation indices improves transparency and accuracy in benefit calculations, helping ensure aid reflects real-world costs and reduces arbitrary or outdated benefit levels.
FinancialPeopleRef: Sec. 1(2)(b)Protecting SSI recipients by ensuring state supplements remain at or above the federal minimum prevents unintended reductions in benefits for the most vulnerable (disabled, blind, or elderly individuals), reducing risk of homelessness or institutionalization.
Public SafetyPeopleRef: Sec. 1(4)By including child care in the standard of need, the bill supports parental employment and stable early learning environments—indirectly improving school readiness and long-term educational outcomes for children in TANF and refugee programs.
EducationPeopleRef: Sec. 1(1), (2)(a)Allowing standards to vary by geography acknowledges regional cost differences (e.g., Seattle vs. Eastern WA), enabling more accurate benefit levels and reducing geographic inequities in assistance adequacy.
HousingPeopleRef: Sec. 1(1)
Potential Concerns (5)
The bill’s 3% annual cap on payment increases—even if inflation or actual cost-of-living increases exceed that—risks eroding real purchasing power over time, potentially increasing material hardship and stress-related health or safety risks for vulnerable households.
Public SafetyPeopleRef: Sec. 1(2)(a), (c); Sec. 1(4)The 3% cap on annual increases—while protecting against runaway budget growth—may systematically undercompensate for actual inflation (e.g., 2021–2023 saw >7% annual CPI-U increases), disproportionately harming households with no alternative income sources and forcing trade-offs between essentials like food, rent, and medication.
FinancialPeopleRef: Sec. 1(4)Mandating inclusion of out-of-pocket health care costs in standards of need is well-intentioned, but without specifying how those costs are measured (e.g., premiums, copays, uncovered services), DSHS may undercount actual burden—especially for chronically ill or disabled recipients—leading to inadequate assistance.
HealthcarePeopleRef: Sec. 1(2)(a)Allowing proration of assistance *unless* the grant equals the standard of need creates a loophole that could permit reductions for households in shared housing (e.g., roommates, multigenerational homes), potentially increasing housing instability for those already in precarious living arrangements.
HousingLean peopleRef: Sec. 1(2)(c)The “16% of need or prior year’s payment level, whichever is greater” floor may benefit only those currently receiving very low benefits (e.g., below 16% of need), while households already near or above 16% see no increase—limiting the bill’s impact on overall poverty depth and leaving many in deep poverty unchanged.
FinancialPeopleRef: Sec. 1(4)
Who Is Most Affected
Families receiving TANF—especially those with young children and working parents—will benefit from inclusion of child care and health care in benefit calculations, but may be harmed by the 3% cap if inflation exceeds it, eroding real value over time.
Refugees, many of whom arrive with limited resources and face high housing and transportation costs, stand to gain significantly from updated standards that reflect real costs—but may be disproportionately impacted by the 3% cap if they live in high-cost areas.
Adults without minor children on basic food benefits (RCW 74.62.030) are newly included in the updated standards—potentially increasing their benefits—but they are excluded from TANF, so they lack the 16% floor protection, making them more vulnerable to undercompensation.
SSI recipients are explicitly protected from reductions in state supplements, providing strong security for this group—but they do not benefit from the expanded cost categories (e.g., child care) since most are not parents, limiting the broader impact of the reform.
State government faces higher baseline costs due to expanded standards and the 16% floor, but the 3% cap limits long-term fiscal risk—though underestimating inflation could create future pressure to revise standards retroactively.