Summary of HB 1120 (2025 Session) — North Carolina
Title: Financial Effectiveness and Transparency Act
Primary Sponsor: Representative von Haefen
Status: Introduced in 2025 session; filed 2026-04-29
Effective Date: July 1, 2026
Purpose (high-level)
- Redirect state funds away from the Carolina Pregnancy Care Fellowship (a crisis pregnancy center) toward DHHS-administered evidence-based maternal and infant health programs.
- Increase transparency and accountability of crisis pregnancy centers receiving state funds.
- Provide clients and the public with access to crisis pregnancy center records.
Key Provisions
1) Redirection of Funds
- Reduces the base budget funding for Carolina Pregnancy Care Fellowship by $6,750,000 in recurring funds starting in Fiscal Year 2026-2027.
- Allocates $6,750,000 in recurring General Fund appropriations to the Department of Health and Human Services (DHHS), Division of Public Health, starting in FY 2026-2027.
- New DHHS funding is designated to expand evidence-based maternal and infant health programs and services, including:
- Healthy Beginnings program
- Safe Sleep NC Initiative
- Evidence-based home visiting programs (e.g., Nurse-Family Partnership)
- Other evidence-based programs selected by DHHS, Division of Public Health
2) Limitations on State Funding for Crisis Pregnancy Centers
- Adds new restrictions to prevent state funds from being allocated to crisis pregnancy centers unless certain information is provided to the state agency:
- (1) A detailed organizational revenue budget for the most recently completed fiscal year, broken down by:
- Government grants or appropriations (state/local)
- Grants/donations from foundations
- Grants/donations from corporations
- Donations from individuals
- (2) An organizational expense budget for the most recent year, categorized as on IRS Form 990
- (3) A program expense budget showing the amount of State funds used in each expense category
- (4) Staffing information: number of full-time, part-time staff, and volunteers; number of licensed healthcare professionals for each category
- (5) Client metrics: number of unique clients served in the most recent fiscal year; breakdown by services such as pregnancy tests, ultrasounds, STD/STI tests, pregnancy counseling, sexual risk education for students, parenting education, and material support
- (6) Material support details: quantities of diapers, baby wipes, clothing, car seats, strollers, cribs, formula, and the number of clients receiving each category
- Requires annual reporting: By December 1 each year, crisis pregnancy centers receiving state funds must provide an updated set of the information listed above to the allocating state agency.
3) Public Records and Access
- If a member of the public requests documents listed in the funding-restriction subsection, the state agency must provide copies within 20 business days, with any individually identifiable health information redacted.
4) Client Records Access (Crisis Pregnancy Centers)
- New statutory provision: Crisis pregnancy centers must provide, within 10 business days after a client request, a free copy of all of the client’s records in the center’s possession.
5) Administrative Code Amendments
- Adds the new reporting and funding limitations into Article 6 of Chapter 143C (State funds for crisis pregnancy centers).
- Section references added:
- § 143C-6-5.3: Limitations on the use of State funds for crisis pregnancy centers
- § 131E-269.50: Copies of crisis pregnancy center client records (requires centers to provide copies on request)
4) Effective Date
- The act becomes effective July 1, 2026.
Potential Impact
Public Health and Services:
- Redirects approximately $6.75 million annually to DHHS programs focused on evidence-based maternal and infant health, potentially expanding access to home visiting, safe sleep initiatives, and related services.
- Aims to improve accountability and transparency in the use of state funds by crisis pregnancy centers.
Crisis Pregnancy Centers:
- Subject to new funding restrictions and reporting requirements; state funds would be contingent on providing detailed financial and programmatic information.
- New obligations to disclose client records on request (with standard privacy redactions for public access).
Taxpayer Transparency:
- Increased visibility into funding sources and expenditures for crisis pregnancy centers and maternal health programs.
- Public access to certain documents and faster response times for records requests.
Implementation Considerations:
- Administrative burden on DHHS and crisis centers to compile, update, and report the required budgets and client/service data.
- Potential impacts on the funding landscape for crisis pregnancy centers and on the scope of DHHS-funded maternal-infant health initiatives.
