$200M ‘Equity’ Program Exposed: How WA Tax Dollars Fueled a Cash Grab

$200M ‘Equity’ Program Exposed: How WA Tax Dollars Fueled a Cash Grab

Washington’s Community Reinvestment Program was created by the Legislature in 2022 as a state-funded, taxpayer-backed “equity” initiative under the Department of Commerce — meant to help people of color buy homes, build small businesses, and create generational wealth. Instead, as Brandi Kruse reports in unDivided, it’s now under investigation for self-dealing, favoritism, and financial abuse.

A whistleblower’s 10-month investigation revealed that nonprofits entrusted to distribute these taxpayer funds — including the Urban League of Metropolitan Seattle — may have handed hundreds of thousands of dollars to insiders, employees, and even family members, while turning away others who legitimately qualified for help.

What’s been uncovered:

  • 💰 $350,000 in “assistance” went to the daughter of a nonprofit executive overseeing the very funds she received.
  • 🏠 Staff and board members at contracted nonprofit groups received cash benefits meant for struggling families.
  • 🔗 Select mortgage brokers and lenders with ties to program insiders were steered state-funded business — earning profits from connections rather than open competition.
  • 🕵️ Despite internal warnings, the state kept sending millions in taxpayer dollars with almost no independent oversight.

Brandi Kruse and whistleblower Corey Orvold deserve credit for exposing what others ignored. But their story points to a much bigger problem: Washington state government’s lack of transparency for taxpayer-funded nonprofits.

Non-Governmental Organizations (NGOs) receiving public funds operate with almost little to no reporting requirements on how they’re spending taxpayer dollars. If reasonable accountability rules were in place, this misuse of funds would’ve been caught much earlier — or never happened.

State Commerce Director Joe Nguyen and Attorney General Nick Brown need to get to the bottom of this now.

👉 Read Brandi Kruse’s full report and share it with friends who deserve to know where their money is really going.

The Legislature just passed $12.5 billion in new tax hikes — the largest in state history. Before demanding more, they owe Washingtonians proof that existing tax dollars are being spent responsibly and to those who really need them.

 

Photo: Brandi Kruse, unDivided

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