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HB 861

RELATING TO TRANSPORTATION.

2025 Regular Session

HB 861 requires a competitive grant process, strict reporting, and performance standards for state-funded pregnancy centers, with potential recovery of funds for noncompliance.

Carried over to 2026 Regular Session.
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Bill Summary · HB 861

Summary — HB 861: Taxpayer Accountability / Pregnancy Centers

Status: Introduced (2025 session). Primary sponsors: Reps. Cervania, Crawford, Greenfield.
Subject areas: funding, grants, DHHS, family planning, public health, reporting, pregnancy centers.

Main purpose

HB 861 seeks to increase taxpayer accountability for State funds directed to pregnancy centers by (1) requiring the Carolina Pregnancy Care Fellowship (CPCF) — the nonprofit administering certain State grants — to run a competitive grant process, (2) imposing performance standards and monitoring, (3) tightening reporting and data collection requirements for both CPCF and funded pregnancy centers, and (4) providing for recovery of State funds for noncompliance.

Key provisions

  • Competitive grant process

    • CPCF must establish an RFA (request for applications) so pregnancy centers in North Carolina can apply competitively for grants authorized under S.L. 2023-134 (Section 9H.11).
    • The RFA must require applicants to disclose detailed operational information (hours; full names, positions, credentials, specialties, and salaries of staff/volunteers; required qualifications and trainings; vendors/materials used for training; whether licensed health care providers are required on-site; whether ultrasounds or STD testing are performed and by whom; advertising practices; medical equipment descriptions; etc.).
    • The RFA must state whether staff/volunteer applications require disclosure of religious beliefs and whether any such answer could disqualify an applicant.

  • Monitoring, evaluation, and anti‑fraud

    • Grantee applications must include plans to evaluate program effectiveness, monitor legal/grant compliance, and detect fraud/abuse.

  • Use of funds and administrative caps

    • Funds allocated to CPCF must be used for nonsectarian, nonreligious purposes.
    • CPCF administrative cap: up to 10% of total allocated funds for the 2023–2025 biennium; up to 15% for subsequent fiscal years.

  • Reporting requirements (annual)

    • CPCF: by July 1 each year (starting July 1, 2026) must announce award recipients and submit a report to DHHS, the Joint Legislative Commission on Governmental Operations, the Joint Legislative Oversight Committee on Health and Human Services, and the Fiscal Research Division. Report must include grantee identities, descriptions, award amounts, number of persons served (by program/activity), Circle of Care program counts, and copies of RFA applications. Annual CPCF reports must also detail monitoring activities, technical assistance provided, and administrative expenditures.
    • Grantees (pregnancy centers): annual report by July 1 (starting July 1, 2026) covering the preceding fiscal year with detailed client/service data: client counts by county and age brackets, visit counts by client and visit type, counts of services/referrals (pregnancy counseling, testing, ultrasounds, STD testing), number of service requests, race/ethnicity, income bands (six ranges from < $20,000 to > $100,000), total unduplicated clients and new clients.

  • Performance standards and fund recovery

    • The bill adds a new statutory section to Chapter 131E (hospital/health facility statutes) establishing performance standards for pregnancy centers and authorizing recovery/recoupment of State funds for noncompliance. (Text in the available materials is truncated; the bill indicates enforcement mechanisms are included.)

Who is affected

  • Carolina Pregnancy Care Fellowship (CPCF) — as grant administrator, subject to new process, reporting, and administrative caps.
  • Pregnancy centers in North Carolina that apply for or receive State grant funds — subject to stricter application, monitoring, reporting, and performance standards.
  • N.C. Department of Health & Human Services (Division of Public Health) and legislative oversight bodies — recipients of reports and responsible for oversight.
  • Potential indirect impacts on clients served by pregnancy centers through changes in funding, oversight, or allowable uses.

Timelines & procedural items in the bill

  • Applies to funds appropriated from the General Fund to DHHS (Division of Public Health) for CPCF for each year of the 2025–2027 biennium.
  • CPCF must announce award recipients and allocate funds no later than July 1 each year, beginning July 1, 2026.
  • Annual reports from CPCF and grantees due each July 1 starting July 1, 2026 (covering the prior fiscal year).

Potential impacts (neutral summary)

  • Increased transparency and data collection on how State grants to pregnancy centers are used and who is served.
  • Administrative and compliance burden on CPCF and grantees to collect, maintain, and report detailed client- and program-level data.
  • Possible financial risk for grantees if found noncompliant, due to recovery provisions.
  • Religious or faith‑based centers may be constrained by the nonsectarian-use requirement and the RFA’s disclosure questions about religious belief in hiring.

Note: The available package includes truncated or partial sections (including the new Chapter 131E provision). For precise enforcement language and complete statutory text, consult the final enrolled bill or session law once available.

Compiled from official sources — confirm details with the bill’s official record.

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