Washington increases relocation assistance cap from $50K to $200K for displaced businesses

The House Transportation Committee convened on February 24, 2025, to discuss Substitute House Bill 1733, which addresses relocation assistance payments for property owners displaced by public projects. The meeting focused on the importance of these payments, which help cover the costs incurred when individuals or businesses must relocate due to property acquisition for public purposes.

The bill outlines that relocation assistance is not a constitutional requirement but rather a benefit established by legislation. It is governed by two primary statutes: the Federal Uniform Relocation Assistance and Real Property Acquisition Policies Act and the Washington Uniform Relocation Act, which aligns closely with federal standards. The Washington State Department of Transportation administers the state program, ensuring displaced persons and businesses receive necessary payments for moving and related expenses.

Key provisions of the bill include an increase in the cap for reestablishment payments from $50,000 to $200,000 for small businesses, nonprofit organizations, and farms. This adjustment aims to better support those affected by relocations. Additionally, starting August 1, 2025, the Department of Transportation will be required to adjust this cap annually for inflation, based on the consumer price index, with changes taking effect the following September.

A fiscal note has been requested to assess the financial implications of the bill, although it has not yet been received. The committee's discussions highlighted the significance of providing adequate support to those displaced, ensuring they can successfully transition to new locations without undue financial burden. The meeting concluded with an emphasis on the need for timely fiscal assessments to inform further legislative action.