WA GOP lawmaker seeks third-party audits for groups receiving government grants, political donation disclosure

In the wake of alleged fraud being exposed in Washington daycares, a Republican lawmaker has introduced legislation that would require third-party audits of private organizations receiving government grant funding and require grant recipients to disclose their political donations, arguing that the state needs stronger safeguards to ensure taxpayer dollars are being used as intended.

House Bill 2058 would mandate independent audits of private entities receiving public money to confirm funds are spent appropriately and deliver measurable results. House Bill 2059 would require grant-funded private entities to publicly disclose employee and board compensation, political contributions, lobbying activity, and a detailed accounting of how grant funds are used.

Rep. Travis Couture, the prime sponsor of both bills, said the proposal is about accountability and addressing what he described as long-standing weaknesses in oversight. “For years, we’ve seen taxpayer dollars flow to private organizations with little follow-up, weak reporting, and few results,” Couture told The Ari Hoffman Show on Talk Radio 570 KVI. “Without real oversight, it’s impossible to know what’s working and what’s being wasted.”

Under the proposed legislation, any private entity receiving grant funding would be required to hire an independent auditor approved by the State Auditor’s Office and submit an audit within six months of the end of the fiscal year. Audits would include a comprehensive accounting of state and federal funds received, an itemized breakdown of expenditures, a review of financial statements and budget reports, and an evaluation of whether grant-funded programs achieved their intended objectives.

The push comes amid heightened scrutiny of childcare funding following allegations of fraud in Washington’s daycare sector. Couture also framed the proposal as part of a broader argument over taxes and spending. “If democrats are willing to raise taxes and grow spending, they should also be willing to ensure the dollars we already have are being spent responsibly and legally,” he said. “Accountability and transparency with the people’s money should not be a partisan issue.”

The legislation would require private organizations to cover the cost of the audits themselves. It also limits how grant dollars can be used, including restricting administrative costs to less than 15 percent of public funds received, and would require organizations to reapply each year to remain eligible for renewed grants.

“These reforms are common sense, fundamental budget practices that the state should’ve been doing all along,” Couture said. “With so many reports of abuse of taxpayer money, we can’t allow the state agencies to grade their own homework anymore.”

Couture and supporters say the measures are aimed at improving transparency in how public money is spent, especially as lawmakers debate budgets, taxes, and expanding state-funded programs.

The proposal comes as Democratic State Sen. Lisa Wellman has pre-filed legislation expanding public records exemptions for childcare providers, shielding a broad range of identifying information from disclosure, a move critics argue comes just as journalists are using public data to uncover suspicious daycare listings tied to large sums of taxpayer funding.