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SHB 2539

Signed

House

Inmate funds

Concerning inmate funds.

How does a bill become law?
  1. Introduced: The bill is filed and assigned a number.
  2. Committee: A subject-matter committee holds hearings, takes public testimony, and decides whether to advance the bill.
  3. Floor Vote: The full chamber (House or Senate) debates and votes on the bill.
  4. Opposite Chamber: The bill repeats the committee and floor vote process in the other chamber.
  5. Governor: The Governor reviews the bill and decides whether to sign or veto it.
  6. Signed: The bill has been signed into law.
Introduced: February 1, 2026
Last Action: March 24, 2026
Status: C 205 L 26

AI Analysis

This analysis was generated by AI and may contain errors. It is not legal advice. Always refer to the official bill text for authoritative information.
People & CommunitiesPeople-leaningCorporate & Wealthy Interests

This bill updates how money sent to incarcerated people in Washington State is handled—specifying automatic deductions for obligations like child support, legal fees, and prison costs, while protecting certain funds (e.g., for postage, medical care, or commissary) from being used for those purposes. It also clarifies exemptions for specific groups and types of funding.

  • Clarifies how money sent to inmates (beyond wages) is distributed: 5% to the crime victims’ compensation account, 10% to a personal savings account, and 20% each toward legal financial obligations, child support, cost of incarceration, and civil judgments for assault.
  • Exempts funds sent specifically for postage, medical expenses (eyeglasses, over-the-counter meds, copays), commissary, and telephone services from deductions—these must be used only for their stated purpose.
  • Allows exemptions from the personal savings deduction for inmates whose earliest release date exceeds life expectancy.
  • Prohibits deductions from funds used to pay for education, vocational, or postsecondary programs (including those paid by third parties like nonprofits).
  • States that deductions do not apply to funds received during transfers to partial confinement, community custody, or furlough (subsistence payments).

Who is affected

  • InmatesInmates who receive money from outside sources (e.g., family, settlements, inheritances) will have portions of those funds automatically deducted for specific obligations.
  • Families and outside supporters of inmatesFamilies or others sending money to inmates for specific purposes (e.g., postage, medical items, commissary, phone) must ensure funds are labeled and used only for those purposes to avoid deductions.
  • State and local government agenciesState and local agencies (e.g., courts, child support offices) may collect payments more efficiently through automatic deductions from inmate funds.
  • Inmates serving life without parole or on death rowInmates serving life without parole or facing capital punishment will still face most deductions, but will not be required to save in a personal account.
Fiscal impact: The bill does not specify a direct fiscal impact on the state budget, but it clarifies how inmate funds are allocated—potentially increasing revenue for the crime victims' compensation account, child support collections, and cost-of-incarcerature recovery. It also protects certain funds (e.g., for postage, medical, commissary) from being diverted to general incarceration costs.
Model: Intel/Qwen3-Coder-Next-int4-AutoRoundGenerated: Mar 19, 2026 at 8:05 PM

Pro/Con Analysis

Potential Benefits (5)
  • Protects inheritance funds from being seized for child support *after* the obligation is paid in full—ensuring that once obligations are satisfied, remaining inheritance stays with the inmate or their dependents, preventing overcollection.

    FinancialPeopleRef: Sec. 2(4)
  • Exempts funds used for education, vocational, or postsecondary programs—including those paid by third parties like nonprofits—from deductions, directly supporting rehabilitation and reducing recidivism by enabling incarcerated people to invest in skills.

    EducationPeopleRef: Sec. 2(6)(a)-(b)
  • Exempts subsistence payments during reentry transitions (e.g., to partial confinement or community custody) from deductions, helping ensure that funds meant to support successful reintegration are not diverted.

    Public SafetyPeopleRef: Sec. 2(11)
  • Allows exemption from the personal savings deduction for inmates whose earliest release date exceeds life expectancy—acknowledging the futility of forced savings for those serving de facto life sentences.

    Rights & LibertiesPeopleRef: Sec. 2(13)
  • Dedicates 5% of inmate funds to the Crime Victims’ Compensation Account, supporting survivors of violent crime—though this benefit is modest relative to the overall deduction structure.

    Public SafetyLean peopleRef: Sec. 2(2)(a)
Potential Concerns (5)
  • Mandates automatic deduction of 10% of all non-wage inmate funds into a personal savings account, which many low-income families sending money to incarcerated relatives cannot afford to lose—effectively reducing disposable resources available for basic needs like commissary, postage, or medical items.

    FinancialPeopleRef: Sec. 2(2)(b)
  • Requires automatic deductions of up to 80% of incoming non-wage funds (20% each for legal financial obligations, child support, cost of incarceration, and civil judgments for assault), which disproportionately burdens families who send money to support basic needs—many of whom are women, children, and elders on fixed or low incomes.

    FinancialPeopleRef: Sec. 2(2)(c)-(f)
  • Caps total deductions at the department’s cost of incarceration, but this cap is calculated using a formula that includes shelter, supervision, and administrative overhead—costs that are already funded by state appropriations—effectively shifting more of the prison’s operating cost onto inmates and their families.

    FinancialPeopleRef: Sec. 2(5)
  • While exempting postage, medical, commissary, and telephone funds from deductions, the bill still permits unused balances to be seized and redirected to general deductions at release—creating uncertainty and disincentivizing families from labeling funds for specific purposes due to fear of loss.

    HousingLean peopleRef: Sec. 2(7)-(10), (13)
  • Exempts subsistence payments during transfers to partial confinement, community custody, or furlough from deductions—but only for funds *issued by the department*, not funds sent by families, limiting the protective effect for families trying to support reentry.

    Public SafetyLean peopleRef: Sec. 2(11)

Who Is Most Affected

Low-income families and supporters of incarcerated peopleNegative Impact

Low-income families—especially women and elders—who send money to incarcerated loved ones will face reduced disposable income, as up to 80% of non-wage funds may be seized before the money reaches the inmate’s personal account. This may reduce the inmate’s access to basic necessities and increase family financial stress.

Incarcerated individualsNegative Impact

Inmates—particularly those with legal financial obligations, child support arrears, or civil judgments—will see reduced access to discretionary funds for commissary, phone, postage, or medical items, potentially worsening health and well-being and increasing risk of disciplinary infractions.

State and local government agencies (e.g., DOC, courts, child support offices)Positive Impact

The state and counties benefit from more reliable, automated collection of legal financial obligations, child support, and cost-of-incarceration recovery—reducing administrative burden and potentially increasing revenue, but at the expense of vulnerable families.

Nonprofit and education service providersMixed Impact

Nonprofits and educational institutions that fund inmate education programs benefit from the exemption of their contributions from deductions, enabling more predictable program funding—but only if they can navigate the labeling and documentation requirements.

Life-without-parole and death row inmatesNegative Impact

Inmates serving life without parole or on death row are exempt from the personal savings deduction, but still subject to all other deductions—meaning they retain no meaningful control over incoming funds, reducing any rehabilitative or dignity-related benefit.