GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025
H 2
HOUSE BILL 171
Committee Substitute Favorable 3/18/25
Short Title: Equality in State Agencies/Prohibition on DEI. (Public)
Sponsors:
Referred to:
February 24, 2025
*H171 -v-2*
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 using DEI in State government hirings and 13
employment; maintaining dedicated DEI staff positions or offices; or offering or requiring 14
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
(c) Nothing in this section shall be construed to conflict with, restrict, limit, or infringe 34
upon speech protected by the First Amendment of the U.S. Constitution. 35 General Assembly Of North Carolina Session 2025
Page 2 House Bill 171-Second Edition
(d) Nothing in this section shall be construed to conflict with or prohibit compliance with 1
Title IX of the Education Amendments of 1972, as amended; the Americans with Disabilities 2
Act, as amended; the Age Discrimination in Employment Act, as amended; Title VI of the Civil 3
Rights Act of 1964; or other applicable State or federal law. 4
(d1) Nothing in this section shall be construed to alter the relationship between the State 5
and an American Indian tribe which shall continue to enjoy all rights, privileges, and immunities 6
as an American Indian tribe with a recognized tribal governing body carrying out and exercising 7
substantial governmental duties and powers similar to the State, being recognized as eligible for 8
the special programs and services provided by the United States to Indians because of their status 9
as Indians. This section shall not apply to the North Carolina State Commission of Indian Affairs 10
and Indian education services and positions. 11
(e) The State Auditor shall conduct periodic compliance audits to determine whether 12
there has been a violation of this section. If the State Auditor determines that a violation of this 13
section has occurred, the determination shall be reported to the General Assembly and the Joint 14
Legislative Commission on Governmental Operations. 15
(f) A State officer or employee who violates this section is subject to removal from office 16
or employment. 17
(g) It is a Class 1 misdemeanor for a person to knowingly and willfully violate this 18
section. 19
(h) An employee of a State agency may bring a civil action for damages to the employee 20
resulting from violation of this section. The civil action may be brought in the county where the 21
employee resides or in which all or a substantial part of the acts or omissions giving rise to the 22
action occurred. 23
(i) Any person may bring a civil action for a violation of this section seeking injunctive 24
or declaratory relief and the recovery of reasonable attorneys' fees and costs. The action may be 25
brought in the county in which all or a substantial part of the acts or omissions giving rise to the 26
action occurred. 27
(j) 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 1.1.(b) G.S. 126-5 is amended by adding a new subsection to read: 31
"(c22) Notwithstanding any provision of law to the contrary, G.S. 126-14.7 shall apply to all 32
(i) nonexempt State employees in the executive branch, including nonexempt employees of The 33
University of North Carolina and nonexempt employees of the Community Colleges System 34
Office, and (ii) community college employees." 35
SECTION 1.2. Article 10 of Chapter 143 of the General Statutes is amended by 36
adding a new section to read: 37
"§ 143-162.8. No public funds for DEI. 38
(a) No State agency, unit of local government, or non-State entity may use any State 39
funds or public monies to promote, support, fund, implement, or maintain diversity, equity, and 40
inclusion (DEI) initiatives or programs. 41
(b) No State agency, unit of local government, or non-State entity shall apply for, accept, 42
or utilize federal funds, grants, or other financial assistance that require compliance with DEI 43
policies, initiatives, or mandates. Any existing programs funded through such means shall be 44
discontinued unless continued participation is expressly required by federal law. 45
(c) The following definitions apply in this section: 46
(1) Diversity, equity, and inclusion or DEI. – A program, policy, initiative, or 47
activity designed or implemented to: 48
a. Influence State government practices with respect to race, sex, color, 49
ethnicity, nationality, country of origin, or sexual orientation other 50 General Assembly Of North Carolina Session 2025
House Bill 171-Second Edition Page 3
than for compliance with applicable State and federal 1
antidiscrimination laws. 2
b. Promote (i) differential treatment of or providing special benefits to 3
individuals on the basis of race, sex, color, ethnicity, nationality, 4
country of origin, or sexual orientation; or (ii) a difference in policy, 5
practice, or action that impairs equal access to opportunities or 6
benefits, based on a protected characteristic. This definition does not 7
apply to antidiscrimination measures, reasonable accommodations, 8
legal requirements, bona fide occupational qualifications, or any trait 9
protected by State or federal antidiscrimination laws. 10
(2) Non-State entity. – As defined in G.S. 143C-1-1. 11
(3) Public monies. – Funds from any source budgeted or expended by a local 12
political subdivision of the State, including revenue authorized by 13
G.S. 153A-149 or G.S. 160A-209. 14
(4) State agency. – A unit of the executive, legislative, or judicial branch of State 15
government, such as a department, institution, division, commission, board, 16
council, community college, or The University of North Carolina system. 17
(5) State funds. – As defined in G.S. 143C-1-1. The term includes any monies 18
received or held by a constituent institution of The University of North 19
Carolina, including endowment funds as defined in G.S. 116-36 and 20
institutional trust funds as defined in G.S. 116-36.1. 21
(6) Unit of local government. – As defined in G.S. 143C-1-1. 22
(d) The prohibitions contained in subsections (a) and (b) of this section include using 23
State funds or public monies to do any of the following: 24
(1) Utilize DEI in hirings, employment, admissions, or the awarding of contracts. 25
(2) Offer or require DEI training. 26
(3) Maintain DEI offices or dedicated staff positions, whether permanent, 27
time-limited, full-time, part-time, or temporary. 28
(e) Nothing in this section shall be construed to conflict with, restrict, limit, or infringe 29
upon speech protected by the First Amendment of the U.S. Constitution. 30
(f) Nothing in this section shall be construed to conflict with or prohibit compliance with 31
Title IX of the Education Amendments of 1972, as amended; the Americans with Disabilities 32
Act, as amended; the Age Discrimination in Employment Act, as amended; Title VI of the Civil 33
Rights Act of 1964; or other applicable State or federal law. 34
(f1) Nothing in this section shall be construed to alter the relationship between the State 35
and an American Indian tribe which shall continue to enjoy all rights, privileges, and immunities 36
as an American Indian tribe with a recognized tribal governing body carrying out and exercising 37
substantial governmental duties and powers similar to the State, being recognized as eligible for 38
the special programs and services provided by the United States to Indians because of their status 39
as Indians. 40
(g) This section shall not be construed to apply to any of the following: 41
(1) Academic course instruction. 42
(2) Scholarly research or a creative work by an institution of higher education's 43
students, faculty, or other research personnel or the dissemination of that 44
research or work. 45
(3) An activity of a student organization registered with or recognized by an 46
institution of higher education. 47
(4) Guest speakers or performers on short-term engagements. 48
(5) A policy, practice, procedure, program, or activity to enhance student 49
academic achievement or postgraduate outcomes that is designed and 50
implemented without regard to race, sex, color, or ethnicity. 51 General Assembly Of North Carolina Session 2025
Page 4 House Bill 171-Second Edition
(6) Data collection. 1
(7) Bona fide qualifications based on sex which are reasonably necessary to the 2
normal operation of public higher education, including: 3
a. Sports teams organized by sex. 4
b. Single-sex bathrooms and locker rooms. 5
c. Requiring a maintenance employee assigned to a single-sex locker 6
room to be a member of that respective sex. 7
d. Fraternities and sororities restricted to members of one sex. 8
e. Having single-sex housing options for students. 9
(8) The North Carolina State Commission of Indian Affairs. 10
(9) Indian education services and positions. 11
(h) It is a Class 1 misdemeanor for a person to knowingly and willfully violate this 12
section. 13
(i) A violation of this section is subject to the applicable penalty provisions of Article 10 14
of Chapter 143C of the General Statutes, Article 11 of Chapter 159 of the General Statutes, 15
G.S. 143C-6-22, or G.S. 159-183. 16
(j) Beginning February 1, 2026, and annually thereafter, each State agency, unit of local 17
government, and non-State entity shall prepare and publicly post on its website, as well as submit 18
to the Office of the State Auditor, a report detailing the actions taken to comply with this section. 19
The report must include each instance where a program or policy was revised or prohibited due 20
to a conflict with this section. The State Auditor shall compile this information and submit a 21
consolidated report to the Joint Legislative Commission on Governmental Operations and the 22
General Assembly by April 1, 2026, and then annually thereafter. 23
(k) The State Auditor shall conduct periodic compliance audits to determine whether 24
there has been a violation of this section. If the State Auditor determines that a violation of this 25
section has occurred, the determination shall be referred for prosecution by the district attorney 26
of the county where all or a substantial part of the alleged violation occurred and reported to the 27
Joint Legislative Commission on Governmental Operations or the Local Government 28
Commission, as appropriate. 29
(l) Any person may bring a civil action for a violation of this section seeking injunctive 30
or declaratory relief and the recovery of reasonable attorneys' fees and costs. The civil action 31
shall be brought in the county in which all or a substantial part of the acts or omissions giving 32
rise to the action occurred. 33
(m) An employee of a State agency, unit of local government, or non-State entity may 34
bring a civil action for damages to the employee resulting from a violation of this section. The 35
civil action may be brought in the county where the employee resides or in which all or a 36
substantial part of the acts or omissions giving rise to the action occurred. 37
(n) The liability and penalty provisions contained in this section for violating its 38
provisions are in addition to, and not in lieu of, liability under any other applicable provision of 39
law or cause of action in consequence of the violation. 40
(o) The provisions of this section are severable. If any provision of this section or its 41
application is held invalid, that invalidity shall not affect other provisions or applications that can 42
be given effect without the invalid provision or application." 43
SECTION 1.3.(a) Article 10 of Chapter 143C of the General Statutes reads as 44
rewritten: 45
"Article 10. 46
"Penalties. 47
"§ 143C-10-1. Offenses for violation of Chapter. 48
(a) Class 1 misdemeanor. – It is a Class 1 misdemeanor for a person to knowingly and 49
willfully do any one or more of the following: 50
… 51 General Assembly Of North Carolina Session 2025
House Bill 171-Second Edition Page 5
(5) Violate G.S. 143-162.8 regarding use of State funds. 1
(b) Class A1 misdemeanor. – It is a Class A1 misdemeanor for a person to make a false 2
statement in violation of G.S. 143C-6-23(c). 3
(c) Forfeiture of Office or Employment. – An appointed officer or employee of the State 4
or an officer or employee of a political subdivision of the State, whether elected or appointed, 5
forfeits his or her office or employment upon conviction of an offense under this section. An 6
elected officer of the State is subject to impeachment for committing any of the offenses specified 7
in this section. 8
"§ 143C-10-2. Civil liability for violation of Chapter. 9
(a) A person convicted of an offense under who violates G.S. 143C-10-1 is liable in a 10
civil action for any damages suffered by the State in consequence of the offense. A State agency 11
or non-State entity receiving public funds shall have a duty to pursue the recoupment of misspent 12
funds by all lawful means available, including the filing of a civil action in the General Court of 13
Justice. 14
(b) Any person may bring a civil action for a violation of this section seeking injunctive 15
or declaratory relief and the recovery of reasonable attorneys' fees and costs. The civil action 16
shall be brought in the county in which all or a substantial part of the acts or omissions giving 17
rise to the action occurred. 18
"§ 143C-10-3. Suspension from office or impeachment for refusal to comply with Chapter. 19
(a) State Officers or Employees of the Executive Branch. – The Governor may suspend 20
from the performance of his or her duties any State officer or employee of the executive branch 21
except an officer elected by the people, who persists, after notice and warning, in failing or 22
refusing to comply with the provisions of this Chapter or any lawful administrative directive 23
issued pursuant to this Chapter. Before acting to suspend, the Governor shall give the accused 24
notice and an opportunity to be heard in his or her own defense. The Governor shall report the 25
facts leading to suspension to the district attorney for the county in which all or a substantial part 26
of the violation occurred and to the Attorney General who may initiate appropriate criminal or 27
civil proceedings. The Governor may apply to the General Court of Justice for a restraining order 28
and injunction if a suspended officer or employee persists in performing official acts. 29
(b) Elected Officers. – A State officer elected by the people who knowingly and willfully 30
fails or refuses to comply with any provision of this Chapter or any lawful administrative 31
directive issued under this Chapter is subject to impeachment." 32
SECTION 1.3.(b) G.S. 159-182 reads as rewritten: 33
"§ 159-182. Offending officers and employees removed from office. 34
(a) If an officer or employee of a local government or public authority persists, after 35
notice and warning from the Commission, in failing or refusing to comply with any provision of 36
this Chapter, he the officer or employee forfeits his the office or employment. The Commission 37
may enter an order suspending the offender from further performance of his or her office or 38
employment after first giving him or her notice and an opportunity to be heard in his or her own 39
defense, pending the outcome of quo warranto proceedings. Upon suspending a local officer or 40
employee under this section, the Commission shall report the circumstances to the Attorney 41
General who shall initiate quo warranto proceedings against the officer or employee in the 42
General Court of Justice. Justice and to the district attorney for the county in which all or a 43
substantial part of the noncompliance occurred. If an officer or employee persists in performing 44
any official act in violation of an order of the Commission suspending him or her from 45
performance of his or her duties, the Commission may apply to the General Court of Justice for 46
a restraining order and injunction. 47
(b) Any person may bring a civil action for a violation of this section seeking injunctive 48
or declaratory relief and the recovery of reasonable attorneys' fees and costs. The civil action 49
shall be brought in the county in which all or a substantial part of the acts or omissions giving 50
rise to the action occurred." 51 General Assembly Of North Carolina Session 2025
Page 6 House Bill 171-Second Edition
SECTION 1.3.(c) Article 11 of Chapter 159 of the General Statutes is amended by 1
adding a new section to read: 2
"§ 159-183. Violation of G.S. 143-162.8. 3
(a) It is a Class 1 misdemeanor for a person to knowingly and willfully violate 4
G.S. 143-162.8 regarding the use of public monies. An offending officer or employee is subject 5
to removal from office or employment as provided by G.S. 159-182. 6
(b) A person who violates G.S. 143-162.8 is liable for any damages suffered by a unit of 7
local government in consequence of the offense. A unit of local government or entity receiving 8
public funds shall have a duty to pursue the recoupment of misspent funds by all lawful means 9
available, including the filing of a civil action in the General Court of Justice." 10
11
PART II. EFFECTIVE DATE 12
SECTION 2.1. This act becomes effective December 1, 2025, and applies to acts, 13
omissions, or offenses occurring on or after that date. 14