Washington state launches controversial race-based home loan program offering zero-interest loans up to $150,000 exclusively to non-white homebuyers, while excluding white citizens regardless of economic status.
Quick Takes
- The Covenant Homeownership Program offers 0% interest loans up to $150,000 exclusively to certain racial groups including Black, Hispanic, Native American, and specific Asian American communities.
- Eligibility requires that applicants or their ancestors lived in Washington before April 1968, belong to specified racial groups, have incomes below area median, and be first-time homebuyers.
- The program explicitly excludes white applicants regardless of economic status, and also excludes other historically discriminated groups such as Jewish Americans.
- Governor Bob Ferguson expanded the program to include loan forgiveness after five years for households earning 80% or less of area median income.
- Critics argue the policy constitutes reverse discrimination by rewarding individuals based solely on race rather than personal circumstances.
Race-Based Eligibility Criteria Sparks Controversy
Washington state’s Covenant Homeownership Program offers unprecedented financial benefits exclusively to certain racial groups. The program provides zero-interest loans up to $150,000 for down payments and closing costs to first-time homebuyers from specific racial backgrounds. Washington State Governor Bob Ferguson signed into law prioritizing down payment assistance for first-time home buyers if they meet a certain skin color. To qualify, applicants must belong to one of the designated racial categories: Black, Hispanic, Native American, Alaska Native, Native Hawaiian, Pacific Islander, Korean, or Asian American. Additionally, applicants or their ancestors must have lived in Washington state before April 1968, when the federal Fair Housing Act passed.
The program has already helped over 200 families across more than 20 counties access homeownership, according to state officials. However, the race-based eligibility has drawn significant criticism from those who view it as government-sanctioned discrimination. The loans are funded through a $100 fee on recorded real estate documents, creating a dedicated revenue stream that currently limits the program to approximately 130 loans of $150,000 each due to funding constraints.
WASHINGTON STATE
"Governor Bob Ferguson just signed into law changes to the most outrageous, illegal reparations program in the entire country. It now GIFTS down payments, averaging $120,000, to black first-time homebuyers without ANY proof of direct housing discrimination." pic.twitter.com/8azJk76nQS
— Republicans for Asotin County (@AsotinCountyGOP) April 28, 2025
Program Expansion and Economic Requirements
Governor Bob Ferguson recently expanded the program to increase both its reach and benefits. The expansion raises income eligibility from 100% to 120% of the area median income, making the loans accessible to more households from the specified racial groups. Perhaps most controversially, the updated program now includes loan forgiveness after five years for households earning 80% or less of the area median income, effectively converting the loans to grants that never need repayment for qualifying recipients.
Proponents point to significant disparities in homeownership rates as justification for the race-based approach. In Washington state, approximately 69% of white households own homes compared to only 34% of Black households and 48% of Hispanic households. These disparities, they argue, stem from historical discriminatory housing practices and require targeted intervention to address.
Exclusions and Legal Questions
The program’s narrow eligibility criteria exclude not only white applicants regardless of their economic circumstances but also other groups that historically faced housing discrimination, such as Jewish Americans. When questioned about these exclusions, program administrators provided a controversial explanation for their selective approach to addressing historical wrongs.
Critics argue the program rewards individuals who have never personally experienced historical discrimination while punishing others for actions they never committed. Legal experts question whether such explicitly race-based government programs can withstand constitutional scrutiny, particularly in light of recent Supreme Court decisions limiting race-conscious policies in other contexts. Meanwhile, other states including California are exploring similar programs, including housing assistance for illegal immigrants.
Sources:
Washington state’s homeownership program offers loans based solely on race
Woke governor signs law providing assistance to first-time home buyers, provided they aren’t White
