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Washington Finally Releases Hidden Daycare Grant Recipients After Backlash Over Transparency

Gov. Ferguson
Gov. Ferguson

After facing mounting pressure over transparency concerns, the Washington Department of Commerce has finally released the names and locations of daycare providers receiving millions in taxpayer-funded grants through the state’s Early Learning Facilities (ELF) program.

The reversal comes just days after criticism erupted over the state’s decision to conceal the identities of many grant recipients while distributing nearly $57.8 million in public funds.

Gov. Bob Ferguson announced last month that more than 70 providers would receive grants to expand or improve childcare facilities, creating an estimated 2,056 new childcare spaces in the Evergreen State.

But when the state initially published the recipient list, more than 20 providers were listed only as “Family Home Facility”, with only the city identified and no provider or business names disclosed.

The omission immediately raised questions, particularly as Washington’s childcare system remains under scrutiny for weak oversight, unauditable spending, and allegations of subsidy fraud.

State audits have found that over $1.3 billion in DCYF childcare spending from 2021–2024 was unauditable due to missing records. A 2025 audit identified $37 million in questionable payments, and auditors said it was “impossible” to trace payments to providers for four years.

The controversy escalated after The Center Square and The Ari Hoffman Show on Talk Radio 570 KVI pressed the Department of Commerce for an explanation.

According to correspondence obtained by The Center Square, Commerce initially defended withholding the information by citing guidance connected to a state law intended to protect vulnerable individuals from identity theft.

“Commerce relies on the state Attorney General’s Office for interpretation of such laws,” Commerce spokesperson Amelia Lamb initially wrote, suggesting reporters file public records requests to obtain the information.

Questions were asked about how a law designed to protect seniors and personal data could justify concealing the identities of businesses receiving taxpayer subsidies. Lamb later told The Center Square that the agency had received “new guidance” from the Attorney General’s Office, leading officials to release the full list of provider names and locations.

On Tuesday, the Department of Commerce provided the complete list to The Ari Hoffman Show and updated Gov. Ferguson’s original press release with a public link containing the full information.

Independent journalists have documented alleged “ghost daycares,” while a former federal childcare official warned the Washington Attorney General’s office that “fraud is common in programs like childcare.”

Following independent journalist Nick Shirley’s video exposing fraud in Minnesota daycares, Sen. Lisa Wellman (D–Mercer Island) backed efforts to limit the public release of childcare provider details, citing safety and privacy concerns. The bill eventually died in committee after public backlash.

Attorney General Nick Brown previously dismissed many fraud allegations as “baseless,” criticized independent journalists investigating daycare providers, and accused some investigators of spreading racist narratives. Seattle Mayor Katie Wilson similarly refused to support investigations into alleged fraud and labeled independent reporters “extremist influencers.”

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