North Carolina could suffer economic consequences if state lawmakers ban state agencies and colleges from prioritizing diversity, a group of legislators warned Thursday.
Members of the North Carolina Legislative Black Caucus, during a press conference at the state legislature, voiced their opposition to House Bill 171, which aims to prohibit state agencies from maintaining, implementing or funding policies that promote diversity, equity and inclusion.
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The Republican-backed bill instructs the state auditor, Republican Dave Boliek, to conduct periodic audits of state agencies to ensure compliance. Sponsors say it’s needed to ensure fairness in state hiring practices. They also say the bill could help government agencies save money.
If the bill is enacted, a state employee who violates the law could lose their job and face a misdemeanor criminal charge.
Members of the Black Caucus, which is led by Democratic legislators, said Thursday that North Carolina could suffer economic consequences if the bill is enacted, predicting that it could cause some companies to reconsider moving to the state. They also said DEI policies help agencies assemble the best teams to tackle problems across the state.
“People don’t want to come to a place that’s trying to exclude people,” said state Sen. Kandie Smith, D-Pitt.
“We're not talking about someone trying to injure people, cause harm, do anything negative,” she said of employees hired in places with DEI policies. “We are talking about trying to include individuals who have been excluded for the majority of the time to ensure that we have the best and the brightest.”
Last year, the University of North Carolina System said it saved $17 million after deciding to eliminate DEI policies and cut 59 positions. Also last year, lawmakers banned public universities and state agencies from asking current or prospective employees to state their opinions on social issues. That law banned training programs that endorse certain ideas about racism, sexism and other topics.
“Taxpayer dollars should fund merit, not woke agendas and identity politics,” state Rep. Brenden Jones, R-Columbus, said in a message posted on social media.
Jones also pushed back on critics’ claims that Republicans don’t value diversity, adding in the post: “This bill upholds equal opportunity and ensures employment and contracts are based on qualifications, not quotas.”
House Bill 171 comes about a month after President Donald Trump signed an executive order that aims to end DEI programs in the federal government. A federal judge recently paused Trump’s order, blocking the administration from terminating or changing federal contracts they consider equity-related.
Republicans who lead some of North Carolina’s state agencies have already vowed to eliminate DEI policies. That includes Boliek, the state auditor, and state Labor Commissioner Luke Farley.
Democratic leaders of the governor’s office, attorney general’s office, Department of Public Instruction, and secretary of state’s office, have made no such announcements.