Government-run grocery stores

House Bill 2313 authorizes cities and towns across Washington to establish, own, and operate public grocery stores in areas with food access gaps.

Under this legislation, local governments are granted broad authority to acquire land, construct or rehabilitate buildings, and even seize private property through eminent domain to establish these stores. The bill allows these government-run enterprises to be operated directly by city employees or leased to private or nonprofit operators.

To fund these ventures, the bill allows cities to apply for capital grants from the Department of Commerce and to designate Tax Increment Financing (TIF) areas, diverting future property tax revenues to subsidize the store’s operations and development. Additionally, cities are encouraged to modify zoning, increase density, and adjust parking requirements to support these government projects.

Why is this a bad policy?

• Authorizes the seizure of private property. The bill explicitly grants cities the power to “take property for public use through eminent domain” to establish a grocery store. This expands the government’s authority to seize private land not for essential public infrastructure, such as roads or utilities, but to enter retail commerce.
• Puts taxpayer money at risk in a high-risk industry. The grocery industry is known for notoriously thin profit margins and complex logistics. By entering this market, local governments expose taxpayers to financial liabilities, operational costs, and the risk of these retail ventures failing.
• Creates unfair government competition. Government-run stores, subsidized by grants and tax revenue, would compete directly with existing private grocers and small businesses that must operate on market principles. This creates an uneven playing field, with the government acting as both the regulator and the competitor.
• Distracts local government from core responsibilities. Cities are currently facing crises in public safety, homelessness, and infrastructure. Diverting resources, staff time, and administrative focus toward managing retail grocery operations dilutes the government’s ability to address its fundamental duties.

Bottom line

HB 2313 expands government overreach by authorizing the use of eminent domain for retail projects and risking taxpayer funds on government-run grocery stores, all while forcing private businesses to compete against the very entity that regulates them.