With snow melting in much of North Carolina over the past few days, you won’t see any winter weather memes in this week’s policy update. But it does include information on the growing momentum for property tax reforms in the NC General Assembly and what that could mean for nonprofits. We share details on the end of the brief, partial federal government shutdown and on a new proposal that could require nonprofits with federal grants to certify that they don’t engage in DEI practices. And we provide reminders about today’s voter registration deadline and next Tuesday’s webinar on nonprofit engagement in the 2026 primary election.
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NC Senate to Explore Property Tax Reforms |
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Leadership in the NC Senate announced this week that a group of 10 state Senators will meet in the near future to develop recommendations for property tax reforms. The announcement explains: “These members will examine ways to provide relief from local taxes while ensuring that local revenue is used responsibly to fund core services our constituents rely on... They will consider policy proposals to rein in the runaway property tax practices being implemented across the state.”
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It is unclear whether the Senate’s property tax review will follow a similar process to the recently-established NC House Select Committee on Property Tax Reduction and Reform. The House committee has held two public meetings so far, with detailed presentations from nonpartisan legislative staff, local government leaders, and outside experts. In addition to hearing about the property tax system, the House committee has explored property tax exemptions for nonprofit hospitals, educational nonprofits, and nonprofit affordable housing providers.
The House property tax committee is scheduled to meet again on February 18. The Senate’s announcement did not indicate that the group of Senators will form a formal committee, meaning that the Senators may not hold public meetings – and that there may be little opportunity for public input – as the Senate develops its recommendations for property tax reforms.
This week’s announcement that the Senate is exploring property tax reforms suggests that changes to property tax laws could be a top priority during the NC General Assembly’s 2026 short session, which begins on April 21. While neither the House nor the Senate has finalized recommendations for property tax reforms, it is possible that property tax legislation could include proposals that would affect nonprofits in several ways, such as: |
- Elimination or limits on property tax exemption for some nonprofits, particularly nonprofit hospitals, nonprofit colleges and universities, and nonprofit affordable housing providers;
- Reforms to the property tax system that could help prevent steep rent increases for nonprofits that lease their property and often bear much of the cost of their landlords’ property tax expenses; and
- Limits on the spending powers of local governments, potentially including limits on the ability of counties and municipalities to make grants to some or all charitable nonprofits.
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Congress Ends Brief, Partial Federal Government Shutdown |
On Tuesday, the U.S. House of Representatives passed a bill (H.R. 7148) to fund a large portion of the federal government for the remainder of the current fiscal year (through September 3). President Trump quickly signed the appropriations bill into law on Tuesday, ending a four-day partial shutdown of the federal government.
The appropriations bill, which the U.S. Senate passed last Friday, provides funding for the U.S. Departments of Defense, Education, Health and Human Services, Housing and Urban Development, State, and Treasury. It also provides temporary funding for the U.S. Department of Homeland Security through February 13. Congress had already approved funding for the U.S. Department of Agriculture, military construction, veterans’ services, and congressional staff for the remainder of the fiscal year in legislation ending the previous government shutdown last November.
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GSA Proposes Adding Anti-DEI Certification Requirements for Nonprofits with Federal Grants |
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Last week, the U.S. General Services Administration (GSA) posted a notice on the Federal Register indicating that it intends to amend the certification requirements in the System for Award Management (SAM) registration system for nonprofits with federal grants to “align with updated executive branch guidance” on discrimination. The posting specifically references the June 2025
U.S. Department of Justice (DOJ) memo with guidance on the types of policies and practices that are deemed “unlawful discrimination” for recipients of federal funds, including nonprofits with federal grants or contracts. |
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Among other things, the memo asserts that diversity, equity, and inclusion (DEI) policies and practices are unlawful discrimination and asserts that “unlawful proxy discrimination” is unlawful discrimination. The memo gives several examples of “proxy discrimination” in hiring and promotion decisions and determinations about program recipients for nonprofits receiving federal funding. These examples include the use of criteria like “cultural competence,” “lived experience,” “overcoming obstacles” narratives, and targeting programs and services to specific geographic areas based on their racial or ethnic composition. The memo implies that federal agencies could freeze or discontinue grant funding for nonprofits that are engaged in practices or policies that DOJ deems discriminatory, either directly or through proxy criteria.
The recent GSA posting suggests that nonprofits with federal grants may soon need to certify on SAM.gov that they do not engage in DEI practices or “proxy discrimination” as described in the DOJ memo. GSA is accepting public comments on the proposal for amendment SAM certification requirements through March 30.
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Today Is Voter Registration Deadline for Primary Election Day Voting |
North Carolina residents who plan to vote in person in the primary election on Tuesday, March 3 must be registered to vote at their current address by today at 5:00 pm. There are two steps to confirming your voter registration status: |
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Check your voter registration on the NC State Board of Elections (NCSBE) Voter Search tool to confirm that you are registered at your current address. While you are there, you can check out your sample ballots for the primary election.
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Make sure that you are not on the NCSBE Registration Repair list. If your name is on this list, you will need to provide your driver’s license, NCDMV ID card, or the last four digits of your Social Security number to election officials in order to receive a regular ballot rather than a provisional ballot when you vote. NCSBE has instructions for how you can do this online (through DMV), in person (at your county board of elections), or by mail (through NCSBE).
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Anyone who is not registered at their current address by 5:00 pm today can register or update their address and vote in person during next month’s early voting period (February 12-28). |
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Join Free Webinar on Nonpartisan Voter Registration and Voter Education Work in 2026 |
Early voting for the primary election opens next Thursday, February 12. While 501(c)(3) nonprofits cannot support or oppose candidates for office or make campaign contributions, your nonprofit can (and should) engage in nonpartisan voter registration and voter education work. To help your nonprofit do this, the Center is offering a free webinar next Tuesday, February 10 from 1-2 p.m. to help answer your questions about the ways nonprofits can safely, legally, and effectively engage in the 2026 election. Register today.
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