In a move already drawing sharp constitutional criticism, Washington State’s Democrat Governor has signed into law a racially preferential housing program that offers forgivable loans—based not on income or need, but on race.
The law, known as House Bill 1696, expands the state’s Covenant Homeownership Program by offering up to $150,000 in taxpayer-backed, zero-interest loans to select racial and ethnic groups for use toward down payments and closing costs. The program explicitly excludes white and many Asian applicants, limiting eligibility to Black, Hispanic, Indigenous, Pacific Islander, Korean, and Asian Indian residents—so long as they can prove familial ties to Washington State prior to April 1968.
The loans are forgivable after five years for households earning 80% or less of the area median income. Critics argue the program blatantly violates the Equal Protection Clause of the U.S. Constitution and constitutes legalized race-based discrimination under the false banner of “equity.”
Senator Mike Lee of Utah was among the first to denounce the law, calling it “outright lawlessness” and warning that racial handouts like these are the inevitable result of ignoring Supreme Court precedent and constitutional boundaries. “Government programs that punish or reward people based solely on race are not just unjust—they’re unconstitutional,” Lee said.
Despite the legal concerns, Washington Democrats and equity activists are championing the law as a way to “correct historical wrongs” and close the racial gap in homeownership. Proponents argue the program is necessary to undo the legacy of redlining and housing discrimination that occurred prior to the Fair Housing Act of 1968.
But critics say the law goes far beyond correcting injustice—it creates new ones. “This isn’t justice. It’s revenge politics dressed up in social justice language,” said one civil rights attorney. “The government is picking winners and losers based solely on skin color, and that’s not only immoral—it’s illegal.”
The program is funded by a $100 fee tacked onto the recording of real estate documents and is administered by the Washington State Housing Finance Commission. Since its inception, the program has already awarded over $27 million to just over 200 families—all chosen based on racial criteria.
Legal challenges are expected to follow, especially in light of the U.S. Supreme Court’s recent rulings striking down race-based affirmative action in college admissions. Legal scholars warn that the Washington law will likely not withstand federal scrutiny and may end up becoming a landmark case in the growing fight against race-based public policy.
The broader question remains: Should Americans be judged and rewarded by their actions—or by the color of their skin? In Washington State, Democrats have made their answer loud and clear.
The Fourteenth Amendment’s Equal Protection Clause prohibits this
It’s not even a close question
This is lawlessness https://t.co/ykeX0RPICm
— Mike Lee (@BasedMikeLee) April 24, 2025