Adds new GS 126-14.7, entitled, “Equality and merit in State government workspaces; no DEI,” as follows. Directs that no State agency can promote, support, fund, implement, or maintain workplace diversity, equity, and inclusion (DEI) programs, policies, or initiatives, including, but not limited to, using DEI in State government hirings and employment; maintaining dedicated DEI staff positions or offices; or offering or requiring DEI training. Defines the following:

Differential treatment: Any distinction, exclusion, or difference in policy practice, or action that impairs equal access to opportunities or benefits, based on a protected characteristic. This definition does not apply to antidiscrimination measures, reasonable accommodations, legal requirements, or bona fide occupational qualifications.
Diversity, equity, and inclusion or DEI training: A program, policy, initiative, or activity designed or implemented to: a. Influence hiring or employment practices with respect to race, sex, color, ethnicity, nationality, country of origin, or sexual orientation other than through the use of merit-based hiring processes in accordance with any applicable State and federal antidiscrimination laws. b. Promote differential treatment of or providing special benefits to individuals on the basis of race, sex, color, ethnicity, nationality, country of origin, or sexual orientation.
Protected characteristic: Any trait protected by State or federal antidiscrimination laws.

Specifies that the statute is not to be construed to conflict with or prohibit compliance with (as applicable) First Amendment speech rights, Title IX of the Education Amendments of 1972, as amended; the Americans with Disabilities Act, as amended; the Age Discrimination in Employment Act, as amended; Title VI of the Civil Rights Act of 1964; or other applicable State or federal law.
Directs the State Auditor to conduct periodic compliance audits and to report any violations to the specified NCGA commission and the NCGA itself.
Makes it a Class 1 misdemeanor to knowingly and willingly violate the statute and subjects any State officer or employee who violates the statute to removal from office. Creates two civil actions arising from violations of the statute: (1) for employees of a State agency for damages to the employee resulting from a violation of the statute and (2) for injunctive relief, declaratory relief and attorneys’ fees by any person. Provides for venue. Contains a severability clause.
Amends GS 126-5 so that the above applies to nonexempt State employees in the executive branch, including nonexempt employees of The University of North Carolina and nonexempt employees of the Community Colleges System Office, and community college employees.
Adds new GS 143-162.8, entitled “No public funds for DEI,” as follows. Prevents a State agency, unit of local government, or non-State entity from using any State funds or public monies to promote, support, fund, implement, or maintain DEI initiatives or programs. Prevents these programs from applying for, accepting, or using federal funds, grants, or other financial assistance that require compliance with DEI policies, initiatives, or mandates. Directs that any existing programs funded through such means must be discontinued unless continued participation is expressly required by federal law. Defines DEI, non-State entity, public monies, State agency, State funds, and unit of local government. Further directs that the above prohibitions include, but are not limited to using State funds or public monies to:

Utilize DEI in hirings, employment, admissions, or the awarding of contracts.
Offer or require DEI training.
Maintain DEI offices or dedicated staff positions, whether permanent, time-limited, full-time, part-time, or temporary.

Clarifies that the statute must not be construed to conflict with First Amendment speech rights, Title IX of the Education Amendments of 1972, as amended; the Americans with Disabilities Act, as amended; the Age Discrimination in Employment Act, as amended; Title VI of the Civil Rights Act of 1964; or other applicable State or federal law.
Directs that the statute cannot be construed to apply to any of the following:

Academic course instruction.
Scholarly research or a creative work by an institution of higher education's students, faculty, or other research personnel or the dissemination of that research or work.
An activity of a student organization registered with or recognized by an institution of higher education.
Guest speakers or performers on short-term engagements.
A policy, practice, procedure, program, or activity to enhance student academic achievement or postgraduate outcomes that is designed and implemented without regard to race, sex, color, or ethnicity.
Data collection.
Bona fide qualifications based on sex which are reasonably necessary to the normal operation of public higher education, including, but not limited to: a. Sports teams organized by sex. b. Single-sex bathrooms and locker rooms. c. Requiring a maintenance employee assigned to a single-sex locker room to be a member of that respective sex. d. Fraternities and sororities restricted to members of one sex. e. Having single-sex housing options for students.

Makes it a Class 1 misdemeanor to knowingly and willfully violate the statute. Requires annual posting of compliance measures by each State agency, unit of local government, and non-State entity starting February 1, 2026, as well as submission to the State Auditor. Directs the State Auditor to submit an annual report to the specified NCGA Committee starting on April 1, 2026. Directs the State Auditor to conduct periodic compliance audits and to report any violations to the specified NCGA commission and the NCGA itself.  
Specifies that a violation of the statute is subject to the applicable penalty provisions of Article 10 of GS Chapter 143C, Article 11 of GS Chapter 159 of the General Statutes, GS 143C-6-22, or GS 159-183. Creates two civil actions arising from violations of the statute: (1) for State, local government, and non-State entity employees for damages to the employee resulting from a violation of the statute and (2) for injunctive relief, declaratory relief and attorneys’ fees by any person. Provides for venue. Provides that the statutory remedies list above are in addition to any other remedies available. Contains a severability clause.
Makes conforming changes to GS 143C-10-1 to account for new misdemeanor.
Expands the civil liability provisions under GS 143C-10-2 to: (1) direct a State agency or non-State entity receiving public funds to pursue the recoupment of misspent funds by all lawful means available, including the filing of a civil action in the General Court of Justice and (2) authorize any person to bring a civil action for a violation of this section seeking injunctive or declaratory relief and the recovery of reasonable attorneys' fees and costs. Requires the Governor to report facts leading to suspension of an executive branch officer or employee under GS 143C-10-3 to the DA in the county where all or a substantial part of the violation occurred along with the Attorney General. Authorizes any person to bring a civil action for a violation of GS 159-80 (removal of offending local government officers and employees from office) seeking injunctive or declaratory relief and the recovery of reasonable attorneys' fees and costs along with rules of venue. Requires the Commission to also report the circumstances of suspension or removal to the DA for county in which all or a substantial part of the noncompliance occurred. Makes technical changes.
Adds new GS 159-183, pertaining to violations of GS 143-162.8, laying out misdemeanor set forth above along with providing that offending officer or employee is subject to removal from their office or employment. Directs that violators are liable for any damages suffered by a unit of local government in consequence of the offense. Requires local government to recoup misspent funds in a civil action filed in the General Court of Justice.
Directs that the penalty provisions set forth above apply to acts or omissions occurring after the act becomes law.

Statutes affected:
Filed: 126-5, 159-182