A Democratic lawmaker in Virginia is backing legislation that would bar state agencies from requiring nonprofits to verify whether applicants qualify for certain federally funded public benefits — a proposal landing as scrutiny over taxpayer dollars flowing through nonprofits grows sharper nationwide.
The measure, House Bill 1369, was introduced by Democratic state Del. Jessica Anderson after renewed attention to large-scale nonprofit fraud cases elsewhere and as the Trump administration pressures states to tighten oversight of how taxpayer funds are distributed.
The one-page bill lays out the restriction in blunt terms:
“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 bill states.
Concerns about nonprofit spending have intensified following a major fraud scandal in Minnesota, where prosecutors allege extensive abuse tied to meal-program funding. In December, the Justice Department said at least 78 people had been charged in the “Feeding Our Future” case — named for a Somali-linked nonprofit accused of siphoning funds connected to St. Paul, Minnesota, and Washington. Nearly 40 people had pleaded guilty by that point.
Defendants were accused of fabricating invoices, attendance records, and meal distribution claims in low-income and other impacted areas across the state.
After the scandal, the Trump administration sent federal authorities to ramp up enforcement against businesses and organizations suspected of fraudulent activity in Minnesota.
Meanwhile in Virginia, Anderson’s bill comes alongside broader policy shifts under newly sworn-in Democratic Gov. Abigail Spanberger, whose early moves have drawn sharp criticism from Republicans. Those changes include repealing an executive action from her predecessor that barred local and state law enforcement from cooperating with federal immigration authorities.
Spanberger has also reduced mandatory minimum sentences for certain crimes and prioritized Diversity, Equity and Inclusion (DEI) in government contracting, while also pushing tax increases.
