wa-law.org > bill > 2025-26 > SB 6218 > Original Bill
Within 60 days of the effective date of this section, the treasurer shall submit a report to the fiscal committees of the legislature detailing:
Any federal funds owed to the state that have not been paid to the state by the federal government due to the existence of a Washington state law, the exercise of which has not been invalidated by a court of competent jurisdiction;
Any federal funds owed to the state, where the federal government's nonpayment of those funds is in contravention of a court decision; and
Any funds the treasurer projects will be due to be paid by the state to the federal government during the succeeding 12 months including, but not limited to, federal taxes owed by the state as an employer, federal employment taxes withheld by the state on behalf of the federal government, offsets for federal debts, backup withholding of federal taxes, and federal grant repayments.
The treasurer shall update this report monthly. Both the initial report under subsection (1) of this section and monthly updates shall be published on the treasurer's website.
If any report required in section 1 of this act indicates there are federal funds owed to the state including but not limited to federal funds that have been withheld due to the existence of a valid Washington state law, the exercise of which has not been invalidated by a court of competent jurisdiction, or federal funds that have been withheld in contravention of a court decision, the director of the office of financial management shall, in consultation with the state treasurer, direct affected agencies to withhold payments to the federal government in the amount of federal funds withheld from the state as described in the treasurer's report.
In directing the withholding of payments under this section, the director of the office of financial management, in consultation with the state treasurer, shall:
First direct the agency or agencies from which federal funding has been withheld due to federal government action to withhold payments to the federal government to prioritize a direct connection with state action. If payments from the agency or agencies directly affected by federal government withholding are insufficient to match the amount of federal funding withheld from the state, the director shall direct other state agencies to withhold payments to the federal government;
Where applicable, direct the affected agency or agencies to first withhold payments to the federal government attributable to senior leadership or management staff before withholding payments to the federal government attributable to other employees.
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The director of the office of financial management, in consultation with the state treasurer, shall direct affected agencies to place payments withheld from the federal government in the RECOURSE act escrow account created in section 3 of this act where federal funds have been withheld from the state by the federal government due to the existence of a Washington state law and either the federal government or state have sought adjudication of the state law's constitutionality, but a court of competent jurisdiction has not issued a ruling on the state's ability to exercise the law.
Funds shall be expended from the RECOURSE act escrow account pursuant to the procedures established in section 3 of this act.
Funds held pursuant to this section and not placed in the RECOURSE act escrow account created in section 3 of this act shall be made available for appropriation as state funds. However, such appropriations shall not exceed the amount of federal funds withheld from the state as described in the treasurer's report in section 1 of this act.
The RECOURSE act escrow account is created in the custody of the state treasurer. All payments to the federal government which are withheld under section 2(3) of this act must be deposited into the account. Only the director of the office of financial management or the director's designee may authorize expenditures from the account. Expenditures from the account may be used only as follows:
If a court of competent jurisdiction issues a ruling, either not subject to appeal or where the deadline for an appeal has lapsed, that the state may, either in part or in full, exercise a law or laws that served as the basis for the federal government to withhold funding owed to the state, the amount of federal payments withheld shall be transmitted to the federal government upon receipt of federal funds previously withheld from the state.
If a court of competent jurisdiction issues a ruling, either not subject to appeal or where the deadline for an appeal has lapsed, that the state may not exercise a law or laws that served as the basis for the federal government to withhold funding owed to the state, the amount of federal payments withheld shall be transmitted to the federal government as soon as possible after either entry of final judgment or lapsing of the appeal deadline.
The account is not subject to allotment procedures under chapter 43.88 RCW.
An appropriation is not required for expenditures from the account.
This act may be known and cited as the reciprocal enforcement of claims on unpaid or reduced state entitlements act or RECOURSE act.
This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect immediately.