The Department of Commerce briefed legislators on Thursday about the Defense Community Compatibility Account (DCCA), a state program that ranks and funds local projects that reduce incompatibility with military installations and that is intended to help communities leverage federal Defense Community Infrastructure Program (DCIP) grants.

"To put it simply, some project applicants are placed at a disadvantage due to the rigidity of the state wanting to be the last dollar in," Mike Cahill, DCCA program manager at the Washington State Department of Commerce, said. He told the Joint Committee on Veterans' & Military Affairs that the DCCA requires projects to identify nonstate funding and that, in practice, no DCCA project has received funding without other sources already secured, which can prevent applicants from applying to DCIP or other federal opportunities that require construction-ready status.

Cahill walked the committee through program eligibility and examples of funded projects, noting that the state has supported K-12 expansions near bases, water-well replacement projects to address PFAS contamination and land-acquisition projects to reduce incompatible uses. He highlighted two Oak Harbor projects'Crescent Elementary School modernization and the Hand in Hand Early Learning Center relocation'as examples that will expand capacity for military-connected children and address siting near airfield operations. "Both projects are on track to open in 2026," he said.

Cahill described the City of Everett's Joint Firefighting Training Center as the state's first combined DoD and municipal training center, an award that Commerce expects the city to pair with federal DCIP funding. "This past legislative session, we had our first project funded that will be applying for DCIP funding, the Everett Joint Firefighting Training Center," he said.

He recommended the legislature consider adjusting the "last-dollar" expectation so Commerce can provide state funding to competitive projects early enough for them to secure federal construction-ready grants. Cahill warned federal timelines for DCIP awards depend on the National Defense Authorization Act and could shift, and he said the DCCA will continue outreach and technical assistance to prospective applicants.

Committee members asked about federal funding trends and possible reductions; Cahill said he had not seen direct cuts yet but expected clarity to emerge after the next NDAA and later in the year.

No committee votes resulted from the briefing; members asked Commerce to continue technical assistance for potential DCCA applicants and to track federal timelines affecting DCIP awards.