HB 1057: Increasing Support for Local Communities to Access Federal Funds (2025 Regular Session)

Summary

House Bill 1057, State of Washington, 2025 Regular Session, prefiled 12/13/24, is an act relating to promoting economic development by increasing support for local communities to access federal funds, and was referred to the Committee on Technology, Economic Development, & Veterans. The legislature finds that communities, particularly in rural areas, need matching dollars to compete for federal funds. The bill amends the grant program supporting grant writers in local communities and the department's inventory of grant opportunities. It requires a report on the use of state matching dollars beginning December 31, 2027, and creates the moving assets to create healthy economic development account in the custody of the state treasurer.

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Full text

     H-0254.1

                                HOUSE BILL 1057


     State of Washington       69th Legislature       2025 Regular Session

     By Representatives Barnard, Ryu, Leavitt, Barkis, Taylor, Jacobsen,
     Reed, Callan, Keaton, Timmons, Tharinger, Simmons, Duerr, Nance,
     Davis, Bernbaum, and Donaghy

     Prefiled 12/13/24. Read first time 01/13/25. Referred to Committee
     on Technology, Economic Development, & Veterans.




 1       AN ACT Relating to promoting economic development by increasing
 2   support for local communities to access federal funds; amending RCW
 3   43.330.088 and 43.330.260; adding new sections to chapter 43.330 RCW;
 4   and creating a new section.


 5   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:


 6       NEW SECTION.    Sec. 1.     The legislature finds that many of
 7   Washington's communities, particularly in rural areas, face an
 8   economic development dilemma in which they need matching dollars to
 9   compete for federal funds that would increase the local tax base,
10   local revenue, and local employment and incomes. Lacking a thriving
11   local tax base, it is difficult to generate the financial resources
12   to supply the needed matching dollars to compete for federal economic
13   development funds.
14       The legislature further finds that there are thousands of federal
15   funding opportunities available for a wide variety of economic
16   development   projects,   including   broadband,   equity,   housing,
17   infrastructure, innovation, regional development, skills training,
18   transportation, and workforce development. In fiscal year 2019, the
19   federal government provided state and local governments $750 billion
20   for health care, transportation, income security, education, job
21   training, social services, community development, and environmental
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 1   protection; while in fiscal year 2023, the grants totaled $1.1
 2   trillion.
 3       The legislature further finds that when the state provides
 4   matching dollars, it can leverage the state's contribution to attract
 5   substantially greater funds and private investment.
 6       The legislature further finds that increasing state matching
 7   dollars will enable local communities to access federal funds which
 8   would, in the aggregate, provide benefits across a broad array of
 9   community priorities and thereby contribute to the state's economic
10   development objectives.
11       The legislature further finds that the state recognized the value
12   of matching dollars to access federal funds for clean energy,
13   climate, clean technology, and resilience, and that it should expand
14   its efforts to all types of economic development funds available from
15   the federal government by expanding its grant writing assistance
16   program, creating scoring criteria to prioritize projects, adopting
17   grant award tiers, and establishing a state account with a pool of
18   matching dollars to be available for local communities to secure
19   matching dollars for applications for federal funds.


20       Sec. 2.   RCW 43.330.088 and 2024 c 223 s 3 are each amended to
21   read as follows:
22       (1) Subject to the availability of amounts appropriated for this
23   specific purpose, by July 1, 2024, the department shall establish a
24   grant program to support ((associate)) local communities, including
25   economic development organizations as defined in 13 C.F.R. Sec. 312.3
26   as it existed on October 10, 2024, frontier counties as defined in
27   RCW 43.330.010, and rural counties as defined in RCW 43.160.020 in
28   the recruiting, hiring, and retention of grant writers. The
29   department must award grants on an annual basis and must prioritize
30   grants for distressed areas as defined under RCW 43.168.020 and
31   grants for applications for federal funds.
32       (2) ((Associate development organizations)) Eligible applicants
33   must apply for the grant program in a manner to be determined by the
34   department.
35       (3) ((Associate development organizations)) Entities that receive
36   awards under this section must provide information on state matching
37   dollars acquired, the use of the funds, including a description of
38   the ((associate development organization's)) entity's recruiting and
39   hiring efforts and, if applicable, the number and types of grants
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1    applied for by the grant writers funded by the state, in their annual
2    reports to the department, if required under RCW 43.330.082.
3        (4) Beginning December 31, 2026, the department must include
4    information on grant award funding and use and state matching dollars
5    in its reports to the legislature on associate development
6    organizations contracts required under RCW 43.330.082.
7        (5) The department shall adopt rules to implement this section.

 8       Sec. 3.   RCW 43.330.260 and 2024 c 223 s 4 are each amended to
 9   read as follows:
10       (1) The department shall make available, within existing
11   resources, an inventory of grant opportunities for state agencies,
12   local governments, and other community organizations engaged in
13   economic development activities.
14       (2) In developing the inventory of economic development grant
15   opportunities, the department ((may)) shall:
16       (a) Regularly review the federal register for opportunities to
17   apply for grants, research projects, and demonstration projects;
18       (b) Maintain an inventory of grant opportunities with private
19   foundations and businesses;
20       (c) Provide a resource guide for applicants for federal grants,
21   including links to federal applications and relevant resources, and
22   contact information for department assistance; and
23       (d) Consult with federal officials, including but not limited to
24   those in the small business administration, the department of labor,
25   the department of commerce, the department of agriculture, the
26   department of ecology, as well as private foundations and businesses,
27   on the prospects for obtaining federal and private funds for economic
28   development purposes in Washington state.
29       (3) The department may also facilitate joint efforts between
30   agencies and between local organizations and state agencies that will
31   increase the likelihood of success in grant seeking and the
32   attraction of major events.
33       (4) The department shall prepare a template letter to be used by
34   an eligible entity to support its application for federal funds that
35   will promote economic development. The letter shall identify the
36   availability   of   state   matching  funds   should   the   applicant
37   successfully obtain federal funds. The department shall provide the
38   letter to an applicant within five business days of request.


                                     p. 3                          HB 1057
 1       (5) The department shall create scoring criteria to prioritize
 2   applications for matching funds. The scoring criteria must include
 3   the number of jobs created, the number of households affected, the
 4   number of businesses impacted, the amount of the federal funding, and
 5   prioritize rural and frontier counties. The department shall solicit
 6   input from associate development organizations, ports, chambers of
 7   commerce, workforce development boards, and the governor's office to
 8   prioritize the federal funds that will have the most significant
 9   impact on economic development in Washington.
10       (6) Applicants for matching funds will be subject to the
11   following grant amounts:
12       (a) Political subdivisions, federally recognized Indian tribes,
13   institutions of higher education as defined in RCW 28B.10.016,
14   consumer-owned   utilities,   small  businesses,  regional   planning
15   organizations, economic development organizations as defined in 13
16   C.F.R. Sec. 312.3 as it existed on October 10, 2024, and nonprofits
17   may receive up to 100 percent of the required match.
18       (b) Investor-owned utilities and other eligible entities may
19   receive a maximum of 50 percent of the required match.
20       (c) If no match is required, an eligible entity may receive up to
21   $100,000 if the amount would increase the likelihood of receiving
22   federal funds or increase the award of federal funds.
23       (d) If a project will benefit a distressed area as defined in RCW
24   43.168.020, the maximum amount awarded under (b) of this subsection
25   may be increased to 100 percent, and the maximum amount awarded under
26   (c) of this subsection may be increased to $500,000.
27       (7)   By  July   1,  2026,   the  department   shall  expand  the
28   fundhub.wa.gov website to include federal funds available for
29   economic development.


30       NEW SECTION. Sec. 4. A new section is added to chapter 43.330
31   RCW to read as follows:
32       Beginning December 31, 2027, the department must report on the
33   use of state matching dollars to obtain federal funds. The report
34   shall be updated every two years and posted on the department's
35   website and transmitted to the governor and the legislature. The
36   report must identify the number of letters provided to eligible
37   entities to support applications for federal funds, the number of
38   successful applications, the awards for state matching funds, the


                                     p. 4                          HB 1057
1    amount of federal funds received, and the number of federal agencies
2    and federal fund opportunities on the fundhub.wa.gov website.


 3       NEW SECTION. Sec. 5. A new section is added to chapter 43.330
 4   RCW to read as follows:
 5       (1) The moving assets to create healthy economic development
 6   account is created in the custody of the state treasurer. Revenues to
 7   the account consist of appropriations and transfers made to the
 8   account by the legislature and all other moneys directed for deposit
 9   into the account. The account is subject to allotment procedures
10   under chapter 43.88 RCW, but an appropriation is not required for
11   expenditures. Only the director or the director's designee may
12   authorize expenditures from the account. Expenditures from the
13   account may only be used to provide matching funds for an eligible
14   entity's award of federal funds that will promote economic
15   development, as described in subsection (2) of this section.
16       (2) Expenditures may be authorized for projects such as, but not
17   limited to:
18       (a) Broadband;
19       (b) Equity;
20       (c) Housing;
21       (d) Public infrastructure;
22       (e) Innovation;
23       (f) Regional development;
24       (g) Skills training;
25       (h) Transportation; or
26       (i) Workforce development.
27       (3) The funds shall be reserved for a project after the
28   application is approved, but shall not be expended from the account
29   unless:
30       (a) The applicant is successful in receiving federal funds for
31   the project;
32       (b) The circumstances are such that time does not permit the
33   director or the eligible entity to secure funding from other state
34   sources;
35       (c) The project will produce significant long-term economic
36   benefits to the state, a region of the state, or a particular
37   community in the state;
38       (d) The project does not require continuing state support;


                                     p. 5                          HB 1057
1       (e) The expenditure will result in new jobs, job retention, or
2   higher incomes for citizens of the state; and
3       (f) The expenditure will not supplant private investment.
4       (4) Reserved funds are committed to a project and are unavailable
5   for reservation or appropriation for other applications until the
6   department receives written notice from the applicant that the
7   application for federal funds has been withdrawn or denied.

                                 --- END ---




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