Startup News: Washington State’s AI Grant Program and Regulation Steps for Entrepreneurs in 2026

Discover the Washington State AI Task Force’s blueprint for ethical AI regulation and startup grants, balancing innovation with public safety and equitable opportunities.

F/MS BLOG - Startup News: Washington State’s AI Grant Program and Regulation Steps for Entrepreneurs in 2026 (F/MS Europe, Washington state AI task force lays out blueprint for regulation)

Washington State’s Artificial Intelligence Task Force has kicked into action by sharing their blueprint for regulating AI while proposing an intriguing grant program to nurture startups. With over 20 years of running companies, I find this initiative fascinating because it highlights two sides of the coin: the challenges of keeping innovation safe and the importance of empowering local entrepreneurs.

Let’s jump into what this means for the entrepreneurial community, why it matters beyond Washington’s borders, and how you can optimize your position within this evolving area.


Why Washington’s AI Blueprint Stands Out

The U.S. still lacks a comprehensive framework for AI regulation. In the absence of this, individual states like California, Colorado, and now Washington are spearheading the creation of AI laws on their own. Washington’s approach is unique because it balances regulation with an actionable plan to fund and support startups through public-private collaboration.

The formation of the Artificial Intelligence Task Force, represented by tech giants like Microsoft, labor unions, and organizations like ACLU, signals a deliberate focus on equity and inclusivity, a shift from the usual, overly corporate-first policies. Their interim report offers clear suggestions that resonate deeply with entrepreneurs like me who have straddled the public and private sectors.


Task Force’s Recommendations That Entrepreneurs Need to Know

Here’s a condensed list of the most relevant insights for small business owners and startups derived from the Task Force’s blueprint:

  1. New Transparency Demands: AI developers in sectors influencing fundamental rights will need to disclose how they select, train, and evaluate their data. This means an industry push for open and accessible algorithmic audits, which could shape perceptions about product development.

  2. A Statewide Grant Fund: The suggested grant program aims to focus on non-Seattle and underserved startup founders. If you have tech talent but limited venture capital access, this could be your golden opportunity to grow without taking on external debt.

  3. Ethical AI Standards: Adopting guidelines based on the National Institute for Standards and Technology (NIST) framework, Washington emphasizes models that mitigate bias, particularly to avoid harm in decision-influencing tools like credit ratings or hiring decisions.

  4. AI in Law Enforcement: For those developing AI tools for government use, your product must pass a transparency test. A public registry of AI tools used by agencies may be mandated, which will require sharing detailed model documentation.

  5. AI in Workplaces: For businesses integrating AI into HR processes, say, monitoring or recruitment, you must disclose how and when AI tools are utilized. Avoiding compliance could dent your reputation and alienate a growing segment of workers.


Key Statistics Illustrating the AI Startup Landscape

If you’re eyeing Washington's upcoming grants, here's some valuable context to keep you grounded:

  • In the U.S., 73 AI-related laws across 27 states were implemented in 2025 alone. Washington is catching up but adapting pragmatically.
  • According to 2025 data, Washington startups still trail California and Colorado in startup funding by a margin of 25-40%, yet they lead in certain areas like environmental technologies.
  • With a tech budget shortfall this year, Washington allocated $300,000 to AI-specific initiatives like the AI House to support emerging founders.

This grants-via-legislation strategy ensures startups that tackle practical challenges stand a better chance of thriving.


How to Position Yourself Strategically

If you’re in the business of building AI models or products, whether as part of an edtech app, logistic tools, or generative software, here’s a guide to capitalizing on the upcoming opportunities in Washington:

1. Understand the Ethical Framework Now

Dive into worker rights, equity, and privacy preemptively. A key recommendation urges AI companies to comply with NIST guidelines. Brush up on this framework and how your project fits it. Tools like the Open Source NIST AI Framework Guide offer templates and steps to help.

2. Start Connecting Locally

Build relationships with the Washington Technology Industry Association, state universities, and advocacy groups active in tech like ACLU or Salesforce. Their involvement signals direct pathways for funding, feedback, and exposure.

3. Target Underserved Communities

The grant program emphasizes a focus on diverse founders, not just tech veterans in Silicon Valley’s traditional startups. As someone who started my EU business with no wealthy network, I cannot stress enough the benefits of positioning your work in ways that show your social commitment.

4. Prepare Your Grant and Financing Strategies

Position your product where the social impact is visible and directly addressed: healthcare AI tools, climate analytics, or rural broadband applications are key areas. Competitive applications tend to focus on scalability and solving regional challenges.


Mistakes You Don’t Want to Make

With this ambitious framework, the stakes are high. Entrepreneurs who do not pay attention to these factors risk falling behind:

  • Ignoring legislative updates. Washington’s AI Task Force will submit their final report by mid-2026. Keep tabs on how the legislature turns recommendations into enforceable laws.
  • Neglecting your compliance strategy. Don’t wait until a grant deadline to understand ethical AI guidelines.
  • Failing to network. Many of these policymakers and task forces involve public-private partnerships. Participate sooner, not later.
  • Missing deadline opportunities. Remember, states move more slowly than private markets, but these competitive moments close quickly.

Deep Dive: Why This Grant Program Matters Globally

Why would an entrepreneur from outside Washington care? The ripple effects of such regional initiatives are undeniable. As we saw with California's stringent internet privacy standards (which influenced the EU’s GDPR), highly localized legislation can end up re-shaping the rules for everyone. If your team builds products destined for U.S. markets, consider Washington’s evolving ethics-first mindset as a long-term playbook.

For my own startups in STEM and AI, I will be following this task force closely. So often, grants emphasize “scaling globally” without making a meaningful contribution to enrich local, diverse communities. Washington’s model invites a healthier, more level playing field, perfect for innovators like you and me.


Final Thought: Focus on Inclusive Innovation

AI policy debates often pit regulation against creativity, Washington State is offering a pathway to reconcile these tensions. By balancing safer development practices with much-needed financial backing for startups, this task force could set a global precedent in fostering not just AI-based projects but AI-driven equity.

As I see it, this is a brilliant opportunity for smaller studios, regional innovators, and bootstrap entrepreneurs to step up. Keep your ideas aligned with what communities need most, and you’ll not only create a sustainable venture but also play a meaningful part in shaping the ethical AI world.

Get ready, 2026 will be the year of purpose-driven AI entrepreneurship.

FAQ

1. What motivates Washington State's efforts in AI regulation and innovation?
Washington State aims to foster technological growth and safeguard public safety and civil rights by balancing innovation and regulation amidst the absence of federal AI policies. Explore the GeekWire article

2. What is the AI Task Force, and who are its members?
The AI Task Force comprises 19 members, including representatives from Microsoft, Salesforce, ACLU, academics, and state officials, working toward ethical AI governance. Learn about the Task Force Membership

3. What are the proposed transparency measures for AI developers?
AI developers must disclose data origins, quality, diversity, and measures for bias mitigation as part of the task force's recommendations. See the Washington AI Interim Report

4. How does Washington aim to support startups through grants?
The task force proposes a public/private grant program prioritizing non-Seattle founders and those with limited access to venture capital. Check out the HB 1833 proposal details

5. Why is AI governance for high-risk systems important?
Oversight ensures AI systems impacting fundamental rights, safety, and health are responsibly deployed to minimize harm. Explore policy governance recommendations

6. What role does education play in Washington's AI initiative?
The state emphasizes AI literacy through K-12 STEM education, teacher development, and rural broadband expansion. Discover education-focused goals

7. How are law enforcement agencies expected to use AI tools?
Law enforcement must publicly list AI tools like facial recognition and predictive algorithms for transparency. Check out law enforcement recommendations

8. What ethical standards does Washington want to adopt for AI models?
Washington aligns with NIST's AI Risk Management Framework to mitigate bias and enhance ethical AI deployment. Learn more about NIST principles

9. How has Washington funded AI initiatives despite budget challenges?
Despite a $16 billion budget deficit, Washington allocated $300,000 toward AI projects like the AI House startup hub. Explore AI House funding

10. Why should other states or global entities care about Washington's AI blueprint?
Washington's proactive approach could set a precedent similar to California's Internet privacy laws, influencing broader AI regulation globally. Read about ripple effects

About the Author

Violetta Bonenkamp, also known as MeanCEO, is an experienced startup founder with an impressive educational background including an MBA and four other higher education degrees. She has over 20 years of work experience across multiple countries, including 5 years as a solopreneur and serial entrepreneur. Throughout her startup experience she has applied for multiple startup grants at the EU level, in the Netherlands and Malta, and her startups received quite a few of those. She’s been living, studying and working in many countries around the globe and her extensive multicultural experience has influenced her immensely.

Violetta Bonenkamp's expertise in CAD sector, IP protection and blockchain

Violetta Bonenkamp is recognized as a multidisciplinary expert with significant achievements in the CAD sector, intellectual property (IP) protection, and blockchain technology.

CAD Sector:

  • Violetta is the CEO and co-founder of CADChain, a deep tech startup focused on developing IP management software specifically for CAD (Computer-Aided Design) data. CADChain addresses the lack of industry standards for CAD data protection and sharing, using innovative technology to secure and manage design data.
  • She has led the company since its inception in 2018, overseeing R&D, PR, and business development, and driving the creation of products for platforms such as Autodesk Inventor, Blender, and SolidWorks.
  • Her leadership has been instrumental in scaling CADChain from a small team to a significant player in the deeptech space, with a diverse, international team.

IP Protection:

  • Violetta has built deep expertise in intellectual property, combining academic training with practical startup experience. She has taken specialized courses in IP from institutions like WIPO and the EU IPO.
  • She is known for sharing actionable strategies for startup IP protection, leveraging both legal and technological approaches, and has published guides and content on this topic for the entrepreneurial community.
  • Her work at CADChain directly addresses the need for robust IP protection in the engineering and design industries, integrating cybersecurity and compliance measures to safeguard digital assets.

Blockchain:

  • Violetta’s entry into the blockchain sector began with the founding of CADChain, which uses blockchain as a core technology for securing and managing CAD data.
  • She holds several certifications in blockchain and has participated in major hackathons and policy forums, such as the OECD Global Blockchain Policy Forum.
  • Her expertise extends to applying blockchain for IP management, ensuring data integrity, traceability, and secure sharing in the CAD industry.

Violetta is a true multiple specialist who has built expertise in Linguistics, Education, Business Management, Blockchain, Entrepreneurship, Intellectual Property, Game Design, AI, SEO, Digital Marketing, cyber security and zero code automations. Her extensive educational journey includes a Master of Arts in Linguistics and Education, an Advanced Master in Linguistics from Belgium (2006-2007), an MBA from Blekinge Institute of Technology in Sweden (2006-2008), and an Erasmus Mundus joint program European Master of Higher Education from universities in Norway, Finland, and Portugal (2009).

She is the founder of Fe/male Switch, a startup game that encourages women to enter STEM fields, and also leads CADChain, and multiple other projects like the Directory of 1,000 Startup Cities with a proprietary MeanCEO Index that ranks cities for female entrepreneurs. Violetta created the "gamepreneurship" methodology, which forms the scientific basis of her startup game. She also builds a lot of SEO tools for startups. Her achievements include being named one of the top 100 women in Europe by EU Startups in 2022 and being nominated for Impact Person of the year at the Dutch Blockchain Week. She is an author with Sifted and a speaker at different Universities. Recently she published a book on Startup Idea Validation the right way: from zero to first customers and beyond, launched a Directory of 1,500+ websites for startups to list themselves in order to gain traction and build backlinks and is building MELA AI to help local restaurants in Malta get more visibility online.

For the past several years Violetta has been living between the Netherlands and Malta, while also regularly traveling to different destinations around the globe, usually due to her entrepreneurial activities. This has led her to start writing about different locations and amenities from the POV of an entrepreneur. Here’s her recent article about the best hotels in Italy to work from.

About the Publication

Fe/male Switch is an innovative startup platform designed to empower women entrepreneurs through an immersive, game-like experience. Founded in 2020 during the pandemic "without any funding and without any code," this non-profit initiative has evolved into a comprehensive educational tool for aspiring female entrepreneurs.The platform was co-founded by Violetta Shishkina-Bonenkamp, who serves as CEO and one of the lead authors of the Startup News branch.

Mission and Purpose

Fe/male Switch Foundation was created to address the gender gap in the tech and entrepreneurship space. The platform aims to skill-up future female tech leaders and empower them to create resilient and innovative tech startups through what they call "gamepreneurship". By putting players in a virtual startup village where they must survive and thrive, the startup game allows women to test their entrepreneurial abilities without financial risk.

Key Features

The platform offers a unique blend of news, resources,learning, networking, and practical application within a supportive, female-focused environment:

  • Skill Lab: Micro-modules covering essential startup skills
  • Virtual Startup Building: Create or join startups and tackle real-world challenges
  • AI Co-founder (PlayPal): Guides users through the startup process
  • SANDBOX: A testing environment for idea validation before launch
  • Wellness Integration: Virtual activities to balance work and self-care
  • Marketplace: Buy or sell expert sessions and tutorials

Impact and Growth

Since its inception, Fe/male Switch has shown impressive growth:

  • 5,000+ female entrepreneurs in the community
  • 100+ startup tools built
  • 5,000+ pieces of articles and news written
  • 1,000 unique business ideas for women created

Partnerships

Fe/male Switch has formed strategic partnerships to enhance its offerings. In January 2022, it teamed up with global website builder Tilda to provide free access to website building tools and mentorship services for Fe/male Switch participants.

Recognition

Fe/male Switch has received media attention for its innovative approach to closing the gender gap in tech entrepreneurship. The platform has been featured in various publications highlighting its unique "play to learn and earn" model.