GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025
H 1
HOUSE BILL 171
Short Title: Equality in State Agencies/Prohibition on DEI. (Public)
Sponsors: Representatives B. Jones, N. Jackson, Lowery, and Eddins (Primary Sponsors).
For a complete list of sponsors, refer to the North Carolina General Assembly web site.
Referred to: Judiciary 1, if favorable, State and Local Government, if favorable, Rules,
Calendar, and Operations of the House
February 24, 2025
*H171 -v-1*
A BILL TO BE ENTITLED 1
AN ACT ELIMINATING DIVERSITY, EQUITY, AND INCLUSION (DEI) INITIATIVES IN 2
STATE AND LOCAL GOVE RNMENT AND CLARIFYIN G THE PENALTY 3
PROVISIONS OF THE STATE BUDGET ACT AND LOCAL GOVERNMENT BUDG ET 4
AND FISCAL CONTROL ACT. 5
The General Assembly of North Carolina enacts: 6
7
PART I. NO DEI IN STATE OR LOCAL GOVERNM ENT 8
SECTION 1.1.(a) Article 5 of Chapter 126 of the General Statutes is amended by 9
adding a new section to read: 10
"§ 126-14.7. Equality and merit in State government workplaces; no DEI. 11
(a) No State agency shall promote, support, fund, implement, or maintain workplace DEI 12
programs, policies, or initiatives, including, but not limited to, using DEI in State government 13
hirings and employment; maintaining dedicated DEI staff positions or offices; or offering or 14
requiring diversity, equity, and inclusion (DEI) training. 15
(b) The following definitions apply in this section: 16
(1) Differential treatment. – Any distinction, exclusion, or difference in policy, 17
practice, or action that impairs equal access to opportunities or benefits, based 18
on a protected characteristic. This definition does not apply to 19
antidiscrimination measures, reasonable accommodations, legal requirements, 20
or bona fide occupational qualifications. 21
(2) Diversity, equity, and inclusion or DEI training. – A program, policy, 22
initiative, or activity designed or implemented to: 23
a. Influence hiring or employment practices with respect to race, sex, 24
color, ethnicity, nationality, country of origin, or sexual orientation 25
other than through the use of merit-based hiring processes in 26
accordance with any applicable State and federal antidiscrimination 27
laws. 28
b. Promote differential treatment of or providing special benefits to 29
individuals on the basis of race, sex, color, ethnicity, nationality, 30
country of origin, or sexual orientation. 31
(3) Protected characteristic. – Any trait protected by State or federal 32
antidiscrimination laws. 33 General Assembly Of North Carolina Session 2025
Page 2 House Bill 171-First Edition
(c) Nothing in this section shall be construed to conflict with, restrict, limit, or infringe 1
upon speech protected by the First Amendment of the U.S. Constitution. 2
(d) Nothing in this section shall be construed to conflict with or prohibit compliance with 3
Title IX of the Education Amendments of 1972, as amended; the Americans with Disabilities 4
Act, as amended; the Age Discrimination in Employment Act, as amended; Title VI of the Civil 5
Rights Act of 1964; or other applicable State or federal law. 6
(e) The State Auditor shall conduct periodic compliance audits to determine whether 7
there has been a violation of this section. If the State Auditor determines that a violation of this 8
section has occurred, the determination shall be reported to the General Assembly and the Joint 9
Legislative Commission on Governmental Operations. 10
(f) A State officer or employee who violates this section is subject to removal from office 11
or employment. 12
(g) It is a Class 1 misdemeanor for a person to knowingly and willfully violate this 13
section. 14
(h) An employee of a State agency may bring a civil action for damages to the employee 15
resulting from violation of this section. The civil action may be brought in the county where the 16
employee resides or in which all or a substantial part of the acts or omissions giving rise to the 17
action occurred. 18
(i) Any person may bring a civil action for a violation of this section seeking injunctive 19
or declaratory relief and the recovery of reasonable attorneys' fees and costs. The action may be 20
brought in the county in which all or a substantial part of the acts or omissions giving rise to the 21
action occurred. 22
(j) The provisions of this section are severable. If any provision of this section or its 23
application is held invalid, that invalidity shall not affect other provisions or applications that can 24
be given effect without the invalid provision or application." 25
SECTION 1.1.(b) G.S. 126-5 is amended by adding a new subsection to read: 26
"(c22) Notwithstanding any provision of law to the contrary, G.S. 126-14.7 shall apply to all 27
(i) nonexempt State employees in the executive branch, including nonexempt employees of The 28
University of North Carolina and nonexempt employees of the Community Colleges System 29
Office, and (ii) community college employees." 30
SECTION 1.2. Article 10 of Chapter 143 of the General Statutes is amended by 31
adding a new section to read: 32
"§ 143-162.8. No public funds for DEI. 33
(a) No State agency, unit of local government, or non-State entity may use any State 34
funds or public monies to promote, support, fund, implement, or maintain diversity, equity, and 35
inclusion (DEI) initiatives or programs. 36
(b) No State agency, unit of local government, or non-State entity shall apply for, accept, 37
or utilize federal funds, grants, or other financial assistance that require compliance with DEI 38
policies, initiatives, or mandates. Any existing programs funded through such means shall be 39
discontinued unless continued participation is expressly required by federal law. 40
(c) The following definitions apply in this section: 41
(1) Diversity, equity, and inclusion or DEI. – A program, policy, initiative, or 42
activity designed or implemented to: 43
a. Influence State government practices with respect to race, sex, color, 44
ethnicity, nationality, country of origin, or sexual orientation other 45
than for compliance with applicable State and federal 46
antidiscrimination laws. 47
b. Promote (i) differential treatment of or providing special benefits to 48
individuals on the basis of race, sex, color, ethnicity, nationality, 49
country of origin, or sexual orientation; or (ii) a difference in policy, 50
practice, or action that impairs equal access to opportunities or 51 General Assembly Of North Carolina Session 2025
House Bill 171-First Edition Page 3
benefits, based on a protected characteristic. This definition does not 1
apply to antidiscrimination measures, reasonable accommodations, 2
legal requirements, bona fide occupational qualifications, or any trait 3
protected by State or federal antidiscrimination laws. 4
(2) Non-State entity. – As defined in G.S. 143C-1-1. 5
(3) Public monies. – Funds from any source budgeted or expended by a local 6
political subdivision of the State, including, but not limited to, revenue 7
authorized by G.S. 153A-149 or G.S. 160A-209. 8
(4) State agency. – A unit of the executive, legislative, or judicial branch of State 9
government, such as a department, institution, division, commission, board, 10
council, community college, or The University of North Carolina system. 11
(5) State funds. – As defined in G.S. 143C-1-1. The term includes any monies 12
received or held by a constituent institution of The University of North 13
Carolina, including endowment funds as defined in G.S. 116-36 and 14
institutional trust funds as defined in G.S. 116-36.1. 15
(6) Unit of local government. – As defined in G.S. 143C-1-1. 16
(d) The prohibitions contained in subsections (a) and (b) of this section include, but are 17
not limited to, using State funds or public monies to do any of the following: 18
(1) Utilize DEI in hirings, employment, admissions, or the awarding of contracts. 19
(2) Offer or require DEI training. 20
(3) Maintain DEI offices or dedicated staff positions, whether permanent, 21
time-limited, full-time, part-time, or temporary. 22
(e) Nothing in this section shall be construed to conflict with, restrict, limit, or infringe 23
upon speech protected by the First Amendment of the U.S. Constitution. 24
(f) Nothing in this section shall be construed to conflict with or prohibit compliance with 25
Title IX of the Education Amendments of 1972, as amended; the Americans with Disabilities 26
Act, as amended; the Age Discrimination in Employment Act, as amended; Title VI of the Civil 27
Rights Act of 1964; or other applicable State or federal law. 28
(g) This section shall not be construed to apply to any of the following: 29
(1) Academic course instruction. 30
(2) Scholarly research or a creative work by an institution of higher education's 31
students, faculty, or other research personnel or the dissemination of that 32
research or work. 33
(3) An activity of a student organization registered with or recognized by an 34
institution of higher education. 35
(4) Guest speakers or performers on short-term engagements. 36
(5) A policy, practice, procedure, program, or activity to enhance student 37
academic achievement or postgraduate outcomes that is designed and 38
implemented without regard to race, sex, color, or ethnicity. 39
(6) Data collection. 40
(7) Bona fide qualifications based on sex which are reasonably necessary to the 41
normal operation of public higher education, including, but not limited to: 42
a. Sports teams organized by sex. 43
b. Single-sex bathrooms and locker rooms. 44
c. Requiring a maintenance employee assigned to a single-sex locker 45
room to be a member of that respective sex. 46
d. Fraternities and sororities restricted to members of one sex. 47
e. Having single-sex housing options for students. 48
(h) It is a Class 1 misdemeanor for a person to knowingly and willfully violate this 49
section. 50 General Assembly Of North Carolina Session 2025
Page 4 House Bill 171-First Edition
(i) A violation of this section is subject to the applicable penalty provisions of Article 10 1
of Chapter 143C of the General Statutes, Article 11 of Chapter 159 of the General Statutes, 2
G.S. 143C-6-22, or G.S. 159-183. 3
(j) Beginning February 1, 2026, and annually thereafter, each State agency, unit of local 4
government, and non-State entity shall prepare and publicly post on its website, as well as submit 5
to the Office of the State Auditor, a report detailing the actions taken to comply with this section. 6
The report must include each instance where a program or policy was revised or prohibited due 7
to a conflict with this section. The State Auditor shall compile this information and submit a 8
consolidated report to the Joint Legislative Commission on Governmental Operations and the 9
General Assembly by April 1, 2026, and then annually thereafter. 10
(k) The State Auditor shall conduct periodic compliance audits to determine whether 11
there has been a violation of this section. If the State Auditor determines that a violation of this 12
section has occurred, the determination shall be referred for prosecution by the district attorney 13
of the county where all or a substantial part of the alleged violation occurred and reported to the 14
Joint Legislative Commission on Governmental Operations or the Local Government 15
Commission, as appropriate. 16
(l) Any person may bring a civil action for a violation of this section seeking injunctive 17
or declaratory relief and the recovery of reasonable attorneys' fees and costs. The civil action 18
shall be brought in the county in which all or a substantial part of the acts or omissions giving 19
rise to the action occurred. 20
(m) An employee of a State agency, unit of local government, or non-State entity may 21
bring a civil action for damages to the employee resulting from a violation of this section. The 22
civil action may be brought in the county where the employee resides or in which all or a 23
substantial part of the acts or omissions giving rise to the action occurred. 24
(n) The liability and penalty provisions contained in this section for violating its 25
provisions are in addition to, and not in lieu of, liability under any other applicable provision of 26
law or cause of action in consequence of the violation. 27
(o) The provisions of this section are severable. If any provision of this section or its 28
application is held invalid, that invalidity shall not affect other provisions or applications that can 29
be given effect without the invalid provision or application." 30
SECTION 1.3.(a) Article 10 of Chapter 143 of the General Statutes reads as 31
rewritten: 32
"Article 10. 33
"Penalties. 34
"§ 143C-10-1. Offenses for violation of Chapter. 35
(a) Class 1 misdemeanor. – It is a Class 1 misdemeanor for a person to knowingly and 36
willfully do any one or more of the following: 37
… 38
(5) Violate G.S. 143-162.8 regarding use of State funds. 39
(b) Class A1 misdemeanor. – It is a Class A1 misdemeanor for a person to make a false 40
statement in violation of G.S. 143C-6-23(c). 41
(c) Forfeiture of Office or Employment. – An appointed officer or employee of the State 42
or an officer or employee of a political subdivision of the State, whether elected or appointed, 43
forfeits his or her office or employment upon conviction of an offense under this section. An 44
elected officer of the State is subject to impeachment for committing any of the offenses specified 45
in this section. 46
"§ 143C-10-2. Civil liability for violation of Chapter. 47
(a) A person convicted of an offense under who violates G.S. 143C-10-1 is liable in a 48
civil action for any damages suffered by the State in consequence of the offense. A State agency 49
or non-State entity receiving public funds shall have a duty to pursue the recoupment of misspent 50 General Assembly Of North Carolina Session 2025
House Bill 171-First Edition Page 5
funds by all lawful means available, including the filing of a civil action in the General Court of 1
Justice. 2
(b) Any person may bring a civil action for a violation of this section seeking injunctive 3
or declaratory relief and the recovery of reasonable attorneys' fees and costs. The civil action 4
shall be brought in the county in which all or a substantial part of the acts or omissions giving 5
rise to the action occurred. 6
"§ 143C-10-3. Suspension from office or impeachment for refusal to comply with Chapter. 7
(a) State Officers or Employees of the Executive Branch. – The Governor may suspend 8
from the performance of his or her duties any State officer or employee of the executive branch 9
except an officer elected by the people, who persists, after notice and warning, in failing or 10
refusing to comply with the provisions of this Chapter or any lawful administrative directive 11
issued pursuant to this Chapter. Before acting to suspend, the Governor shall give the accused 12
notice and an opportunity to be heard in his or her own defense. The Governor shall report the 13
facts leading to suspension to the district attorney for the county in which all or a substantial part 14
of the violation occurred and to the Attorney General who may initiate appropriate criminal or 15
civil proceedings. The Governor may apply to the General Court of Justice for a restraining order 16
and injunction if a suspended officer or employee persists in performing official acts. 17
(b) Elected Officers. – A State officer elected by the people who knowingly and willfully 18
fails or refuses to comply with any provision of this Chapter or any lawful administrative 19
directive issued under this Chapter is subject to impeachment." 20
SECTION 1.3.(b) G.S. 159-182 reads as rewritten: 21
"§ 159-182. Offending officers and employees removed from office. 22
(a) If an officer or employee of a local government or public authority persists, after 23
notice and warning from the Commission, in failing or refusing to comply with any provision of 24
this Chapter, he the officer or employee forfeits his the office or employment. The Commission 25
may enter an order suspending the offender from further performance of his or her office or 26
employment after first giving him or her notice and an opportunity to be heard in his or her own 27
defense, pending the outcome of quo warranto proceedings. Upon suspending a local officer or 28
employee under this section, the Commission shall report the circumstances to the Attorney 29
General who shall initiate quo warranto proceedings against the officer or employee in the 30
General Court of Justice. Justice and to the district attorney for the county in which all or a 31
substantial part of the noncompliance occurred. If an officer or employee persists in performing 32
any official act in violation of an order of the Commission suspending him or her from 33
performance of his or her duties, the Commission may apply to the General Court of Justice for 34
a restraining order and injunction. 35
(b) Any person may bring a civil action for a violation of this section seeking injunctive 36
or declaratory relief and the recovery of reasonable attorneys' fees and costs. The civil action 37
shall be brought in the county in which all or a substantial part of the acts or omissions giving 38
rise to the action occurred." 39
SECTION 1.3.(c) Article 11 of Chapter 159 of the General Statutes is amended by 40
adding a new section to read: 41
"§ 159-183. Violation of G.S. 143-162.8. 42
(a) It is a Class 1 misdemeanor for a person to knowingly and willfully violate 43
G.S. 143-162.8 regarding the use of public monies. An offending officer or employee is subject 44
to removal from office or employment as provided by G.S. 159-182. 45
(b) A person who violates G.S. 143-162.8 is liable for any damages suffered by a unit of 46
local government in consequence of the offense. A unit of local government or entity receiving 47
public funds shall have a duty to pursue the recoupment of misspent funds by all lawful means 48
available, including the filing of a civil action in the General Court of Justice." 49
50
PART II. EFFECTIVE DATE 51 General Assembly Of North Carolina Session 2025
Page 6 House Bill 171-First Edition
SECTION 2.1. This act is effective when it becomes law, and the penalty provisions 1
enacted in Part I of this act apply to acts or omissions occurring on or after that date. 2