By VABayNews Staff

A newly introduced bill in the Virginia General Assembly is drawing growing scrutiny from critics who warn it could weaken state-level oversight of federal benefit programs administered through nonprofit organizations—particularly now that Democrats control both the legislature and the Governor’s Mansion.

House Bill 1369 (HB1369), introduced on January 20 by Democratic Delegate Jessica L. Anderson, would prohibit Virginia state agencies from requiring nonprofit charities to verify whether individuals receiving certain federal public benefits are eligible under program rules.

If passed, the legislation would head to the desk of Abigail Spanberger, whose administration is expected to be more receptive to Democratic policy priorities involving social services and nonprofit operations.

What HB1369 Does

HB1369 amends the Code of Virginia by adding § 2.2-614.6, titled “State agency administration of federal funds; eligibility determination exemption for nonprofit organizations.”

The bill states:

“No state agency responsible for the administration of federal funds shall impose a requirement on a nonprofit charitable organization providing a federal public benefit to determine, verify, or otherwise require proof of eligibility of any applicant for such benefits.”

The measure applies specifically to state-imposed requirements placed on nonprofits distributing federal public benefits, as defined under federal law (8 U.S.C. § 1611(c)). These benefits include programs such as food assistance, housing aid, disability services, and other federally funded support programs.

The bill is currently listed as “Committee Referral Pending,” meaning it has not yet been assigned for hearing or debate.

What the Bill Does Not Do

Contrary to some viral social media claims, HB1369 does not eliminate all oversight of nonprofits, nor does it prevent federal authorities from enforcing eligibility rules or conducting audits.

Instead, the bill bars Virginia state agencies from requiring nonprofits to verify eligibility of individual recipients as a condition of administering federal benefits.

Why Critics Are Concerned

While the bill’s language is narrow, opponents argue its practical effect could be significant.

Critics contend that removing state-level verification requirements:

• Limits Virginia’s ability to add safeguards against misuse of federal funds
• Shifts accountability away from organizations directly distributing aid
• Creates conditions similar to past nonprofit fraud scandals in other states
• Weakens public confidence in benefit programs already under scrutiny

Recent national cases—such as the Minnesota nonprofit fraud scandal involving hundreds of millions in misused federal funds—have heightened concerns that reduced verification requirements invite abuse, even if unintentionally.

From a center-right perspective, the issue is less about intent and more about risk: when state agencies are prohibited from requiring basic eligibility checks, taxpayers lose an important layer of protection.

A Changed Political Landscape

Under previous divided government, legislation affecting benefit oversight faced a high likelihood of veto. That is no longer the case.

With Democrats holding the legislature and Gov. Spanberger now in office, HB1369’s prospects are shaped less by partisan resistance and more by internal Democratic debate—particularly among moderates and lawmakers from swing districts.

The question moving forward is whether Virginia’s new administration will prioritize speed and flexibility in aid delivery over state-level accountability, or whether amendments could strike a better balance between compassion and oversight.

What Comes Next

HB1369 has not yet been assigned to a committee, but it is expected to be referred to either House General Laws or Appropriations. Any amendments, fiscal impact statements, or public testimony could significantly alter the bill’s trajectory.

As the 2026 session continues, HB1369 is likely to remain a flashpoint in a broader debate over how Virginia manages federal dollars—and how much oversight is enough when taxpayer funds are at stake.s about how Virginia should oversee taxpayer-funded aid tomorrow.

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