Nonprofit grant advances

AN ACT Relating to establishing a pilot program to advance funds 1
to nonprofits to support grant performance; amending RCW 39.34.150; 2
adding a new section to chapter 43.330 RCW; and providing an 3
expiration date. 4
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:5
NEW SECTION. Sec. 1. A new section is added to chapter 43.330 6
RCW to read as follows: 7
(1) The department is tasked with generating greater local 8
capacity. To achieve this objective, the department may advance funds 9
to public benefit nonprofit corporations, as defined in RCW 10
24.03A.245, that have received grants from the department. This 11
advance funding pilot program will provide advance funds, as 12
described in this section, to eligible grant recipients who have 13
demonstrated the need for advance funding in order to perform the 14
work required by the department grant. 15
(2) The department shall develop uniform equity-driven procedures 16
for the demonstration of need. The department shall consult with 17
external partners, including impacted communities, to develop the 18
procedures. 19
(3) The department shall develop eligibility criteria for advance 20
fund applicants. The department shall prioritize those applicants 21
H-3011.1
HOUSE BILL 2587
State of Washington 69th Legislature 2026 Regular Session
By Representatives Cortes, Reed, Parshley, Santos, Goodman, Obras,
Peterson, Fosse, Thomas, Stearns, Pollet, Ryu, Nance, Timmons,
Salahuddin, and Hill
Read first time 01/20/26. Referred to Committee on Appropriations.
p. 1 HB 2587
with an average annual budget less than $5,000,000. The eligibility 1
criteria must include: 2
(a) The recipient must have been awarded a department grant 3
within six months; 4
(b) The recipient must have performed satisfactorily under any 5
grant received from the department within the preceding 10 years;6
(c) The recipient must be a public benefit nonprofit corporation, 7
as defined in RCW 24.03A.245; 8
(d) The recipient must have been in the business for which the 9
grant was received for a minimum of three years; and10
(e) The grant received from the department must be to protect 11
public health, protect public safety, promote public welfare, or 12
provide a benefit to the state. 13
(4) Advance fund payments are to be one time and limited to no 14
more than 25 percent of the grant or $200,000, whichever is less. The 15
amount of the advance fund payment must be deducted from the total 16
grant awarded to the recipient. 17
(5) An enforceable contract that protects the interests of the 18
state must be fully executed before any advance fund payments are 19
made. The advance fund recipient shall use the awarded funds only for 20
the purpose stated in the contract. 21
(6) By September 1, 2028, the department shall submit a report to 22
the relevant committees of the legislature and the governor in 23
compliance with RCW 43.01.036 that includes: 24
(a) An evaluation of the advance funding pilot program that 25
includes outcome data for participants; 26
(b) Recommendations on whether to continue the advance funding 27
program; 28
(c) Recommendations for improving or expanding the advance 29
funding program; and 30
(d) Recommendations for implementing an advance funding program 31
through performance-based contracts. 32
(7) This section expires June 30, 2029. 33
Sec. 2. RCW 39.34.150 and 2011 c 336 s 805 are each amended to 34
read as follows: 35
(1) State agencies are authorized to advance funds to defray 36
charges for materials to be furnished or services to be rendered by 37
other state agencies. Such advances shall be made only upon the 38
approval of the director of financial management, or his or her order 39
p. 2 HB 2587
made pursuant to an appropriate regulation requiring advances in 1
certain cases. An advance shall be made from the fund or 2
appropriation available for the procuring of such services or 3
materials, to the state agency which is to perform the services or 4
furnish the materials, in an amount no greater than the estimated 5
charges therefor. 6
(2) Until June 30, 2029, the department of commerce may advance 7
funds to public benefit nonprofit corporations, as defined in RCW 8
24.03A.245, pursuant to an approved contract under section 1 of this 9
act.10
NEW SECTION. Sec. 3. If any provision of this act or its 11
application to any person or circumstance is held invalid, the 12
remainder of the act or the application of the provision to other 13
persons or circumstances is not affected.14
--- END ---
p. 3 HB 2587