WATCH: WA GOP lawmaker asking Trump administration to investigate fraud allegations

By Carleen Johnson
The Center Square

A Washington state lawmaker is asking President Donald Trump and the U.S. Department of Justice to investigate potential self-dealing and fraud within taxpayer subsidized programs that fund race-based housing grants, daycare subsidies and more.

As reported in recent weeks and months by The Center Square, state officials and majority Democrats have so far resisted efforts to call for investigations or outside audits.

“We truly don’t have very good mechanisms set up to track when money is not being spent properly,” said Rep. Jenny Graham, R-Spokane Valley, in a Friday interview with The Center Square. “There’s nothing that happens when money disappears. Who actually is held accountable for it?”

Graham has introduced House Joint Memorial 4014, asking the Trump administration to get involved and start investigating grant programs and the state agencies responsible for doling out the funds.

Part of HJM 4014 credits TCS investigations and reporting for inspiring the measure, which is similar to a bill.

-WHEREAS, The Center Square has reported on potential fraud in Washington state’s taxpayer-subsidized childcare centers, including instances where licensed facilities received substantial subsidies despite appearing inactive or nonoperational; and

-WHEREAS, The Center Square investigations have drawn parallels to federal raids in Minnesota over similar childcare fraud schemes, spotlighting vulnerabilities in Washington’s Department of Children, Youth, and Families (DCYF) subsidy system that may have cost taxpayers millions; and

-WHEREAS, The Center Square has documented democratic lawmakers criticizing journalistic probes into these allegations, while republican lawmakers call for independent audits to address unaccounted funds nearing $500,000,000; and

-WHEREAS, The Center Square has reported frustration from legitimate day care owners over alleged fraud within the Somali community, with DCYF claiming to investigate reports but downplaying the extent of issues.

Graham told TCS with both Governor Bob Ferguson and Attorney General Brown deflecting questions about the appearance of widespread self-dealing and potential fraud, and majority Democrats telling reporters they should not look into the questionable dealings, her HJM hopes to get the attention of the Trump administration.

Deputy Communications Director Mike Faulk, in the AGO’s office emailed a response about the HJM after initial publication.

“We’ve said many, many, many times that we take fraud allegations seriously,” wrote Faulk. “This frivolous document spotlights the synergy between GOP politicians and right-wing content creators.”

“There are some credible allegations about possible fraud going on and this is one of the reasons why your tax bills keep going up and up and up,” Graham said. “They have to be willing to start looking at where the money is going to stop the bleeding instead of continually going back to passing bills that take more money out of the pockets of the working people.”

The HJM also notes a lawsuit filed by Representative Jim Walsh, who is the Washington State Republican Party Chairman. The suit challenges the “attorney general’s disparagement of efforts to preserve public records related to widespread taxpayer fraud, alleging state employees altered records in violation of the Public Records Act.”

TCS has screenshots from state websites showing large taxpayer subsidies to home daycare providers, where subsidies received since media reporting began have changed.

“We have a situation where you literally have elected officials, including the auditor of the state saying we’re not going to investigate this fraud. And the mayor of Seattle said she’s not going to investigate the fraud because it’s racist,” Graham said. “So, I really honestly feel like I didn’t have much other option but to try to look outside of Washington state….to find out where all the Washington state taxpayer money is going.”

The House Joint Memorial, which is co-sponsored by 13 other Republicans in Olympia was referred to the State Government & Tribal Relations committee.

The committee is chaired by Rep. Sharlett Mena, D-Tacoma. TCS reached out to her office to inquire if the HJM will receive a public hearing but did not receive a response in time for publication.