Reps. Travis Couture, R-Allyn, and April Connors, R-Kennewick, are calling for stronger oversight and accountability of nonprofit organizations that receive state funding following a whistleblower report alleging potential fraud, favoritism, and abuse in multiple programs.
Washington invests hundreds of millions of taxpayer dollars each year in nonprofit-run programs to address homelessness, housing, youth programs, juvenile rehabilitation, and more. Yet, Couture and Connors say those investments often lack measurable results, consistent performance standards, or independent audits to verify whether funds are being spent effectively.
“This is not a new problem,” said Couture, ranking Republican on the House Appropriations Committee. “For years, we’ve seen taxpayer dollars flow to private organizations with little follow-up, weak reporting, and few results. Without real oversight, it’s impossible to know what’s working and what’s being wasted.”
Couture pointed to previous reports of funds being misused by private entities and programs that failed to deliver on their promises, saying the recent whistleblower allegations are only the latest warning sign. The report alleges some nonprofit organizations diverted benefits to employees and family members, steered clients to favored real estate brokers and lenders, and allowed individuals to collect overlapping benefits from multiple state-funded programs.
Connors said Washingtonians deserve transparency and results from these programs intended to help them.
“As a real estate broker for over 20 years, I am appalled by the allegations in this report,” she said. “Every taxpayer dollar must be tracked and tied to outcomes. When state-funded programs underperform – or worse, misuse funds – the public pays the price.”
Both lawmakers expressed frustration that the Democratic majority in Olympia declined to hear Couture’s budget reform bills last session, despite repeated calls for oversight.
“If the majority is willing to raise taxes and expand spending, they should also be willing to ensure those dollars are spent responsibly,” Couture added. “Accountability should not be a partisan issue.”
Couture plans to reintroduce two measures during the 2026 session aimed at strengthening oversight and transparency of nonprofit programs funded with state dollars:
- House Bill 2058 – Mandates third-party audits of all private entities receiving public money to confirm funds are appropriately spent and produce measurable results.
- House Bill 2059 – Requires private entities receiving state-funded grants to publicly disclose employee and board compensation, political contributions, lobbying activities, and a detailed accounting of how grant funds are used.
“These reforms are about trust,” Connors said. “People in our communities work hard for every dollar they send to Olympia. They deserve to know it’s being used to make a real difference – not lost in a system with no accountability.”