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Office of Equity warns federal funding disruptions are straining small organizations and communities

State Government and Bridal Relations Committee · June 22, 2026
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Summary

Megan Matthews, director of the Office of Equity, told lawmakers that federal funding changes and increased federal inquiries are disrupting community programs and causing mental‑health stress among affected groups, and outlined coordination and data‑privacy work underway.

Megan Matthews, director of the state's Office of Equity, briefed the committee on how federal actions and funding shifts are affecting communities and state operations.

"The funding situation really puts us in a little bit of a tight situation," Matthews said, explaining that small community organizations have closed when funding streams were disrupted and that communities and state employees are experiencing "fear and mental health impacts" related to federal policy changes.

Matthews described steps the office is taking: improving coordination with the Attorney General's Office, the governor's office and local governments; convening three subcommittees (immigrant/refugee, disability, LGBTQ) to surface community needs; conducting a state enterprise data audit to reduce unnecessary collection of immigration‑status information; and drafting model policies to implement the 'Keep Washington Working' framework and related accountability measures.

She said the office is also looking for practical ways to support very small community‑based organizations and to ensure consistent communications so residents know what services remain available.

Committee members asked about human‑trafficking intersections and what technical assistance agencies need to comply with 'Keep Washington Working' guidance; Matthews said agencies primarily seek clear direction and expectations they can implement consistently.