HB 2186, expanding state agency assistance for local governments applying for federal grants, failed to pass the February 17 house-of-origin cutoff. AWC does not expect the bill to make a return before the end of the legislative session.

Program to support locals in capturing federal funds may soon expand

January 9, 2026

A bipartisan bill to support Washington in acquiring federal funding would expand state agency assistance for local governments seeking federal grants for economic development goals.

HB 2186, sponsored by Rep. Stephanie Barnard (R–'Pasco) with the support of Reps. Cindy Ryu (D–Shoreline) and Alex Ramel (D-Bellingham), builds on existing legislation that directs the Department of Commerce to offer technical assistance to local communities developing applications for federal funding that would promote economic development and prioritize grants for distressed areas.

This year’s bill directs Commerce to:

• Provide local grant applicants, upon their request, with a letter of support that identifies the state’s available matching funds for the grant in question.
• Solicit input from a range of local and state agencies and organizations to identify the federal funds that will likely be available in each biennium and to prioritize the funds that will have the most significant impact on economic development in the state.
• Develop scoring criteria to prioritize and award matching funds to an application with a letter of opportunity for matching funds.
• Establish a competitive process to evaluate and award matching funds. The legislation provides direction to Commerce for determining when to award state matching funds to local applicants and sets limitations on the amount of matching funds applicants may receive and when.

While the bill creates a new account in the state Treasury for the purposes of the legislation, it includes no budgetary request.

AWC supports the bill and thanks the sponsors for their ongoing work to assist locals in capturing federal funds.

Date to remember

HB 2186 is scheduled for public hearing in the House Technology, Economic Development & Veterans Committee on Friday, January 16, at 10:30 am.