NC H171

Prohibits state agencies and local governments from promoting, funding, or maintaining diversity, equity, and inclusion (DEI) programs, including dedicated DEI staff positions, offices, or required DEI training, effective July 1, 2026

Bars state and local governments from applying for or accepting federal funds that require compliance with DEI policies, unless continued participation is expressly required by federal law

Imposes civil penalties of up to $5,000 per violation for state employees and up to $10,000 per violation for knowing and willful violations involving public funds, with violators subject to removal from office or employment

Requires annual compliance reports from all state agencies and local governments beginning February 1, 2026, with the State Auditor conducting periodic audits and submitting consolidated reports to the legislature

Exempts compliance with federal antidiscrimination laws (Title IX, ADA, Civil Rights Act), First Amendment-protected speech, American Indian tribal relations, data collection, guest speakers, and holiday celebrations from the prohibition