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Bill

HB 1866

Creating a pilot program to advance funds to nonprofits to support grant performance.

2025-2026 Regular Session Introduced by Mary Fosse and 10 co-sponsors

Washington pilot program advances state funds to nonprofits to bridge grant performance funding gaps and improve cash flow for community service organizations.

First reading, referred to Appropriations.
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Bill Summary · HB 1866

Legislative bill overview

HB 1866 establishes a pilot program in Washington that would provide advance funding to nonprofit organizations to help them meet grant performance requirements and deadlines. The program appears designed to address cash flow challenges that nonprofits face when they must complete work before receiving reimbursement from grant funders.

Why is this important

Many nonprofits operate on thin margins and struggle with timing mismatches—they must spend money immediately to deliver services, but grant reimbursements arrive weeks or months later. This pilot could improve nonprofits' financial stability and their ability to serve communities without taking on debt or delaying programs. It may also increase the competitiveness of Washington nonprofits in pursuing larger grants.

Potential points of contention

  • Fiscal responsibility: Lawmakers may question the total cost of the program, how much advance funding would be provided, and whether state funds should subsidize what some see as a federal/funder problem
  • Eligibility and oversight: Determining which nonprofits qualify, how funds are tracked, and accountability measures to prevent misuse of advanced state money
  • Program design: Whether this creates dependency on state support rather than addressing root causes (underfunded grants, slow reimbursement practices by grantmakers)

Compiled from official sources — confirm details with the bill’s official record.

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