FOR IMMEDIATE RELEASE
Date: 2/2/2026
Contact:
Dr. Mariane Asad Doyle
Center for Nonprofit Excellence-Virginia
mdoyle@thecne.org
Virginia House Bill 353 Unanimously Passes House Labor & Commerce Subcommittee (9–0)
RICHMOND, VA — House Bill 353 (HB 353), legislation that would expand access to health benefit plans for Virginia’s nonprofit workforce, passed the House Labor and Commerce Subcommittee #1 with a unanimous vote (9–0) on Tuesday, January 27th, marking a significant early step in the 2026 General Assembly session.
HB 353, sponsored by Delegate Katrina Callsen (D), proposes a targeted amendment to § 38.2-3431 of the Code of Virginia to broaden the types of nonprofit organizations that may serve as a “sponsoring association” for a benefits consortium that offers health benefit plans to members. Under current law, sponsoring associations may operate only as § 501(c)(5) or § 501(c)(6) entities. This bill would add § 501(c)(3) charitable organizations to that list, enabling more nonprofits to pool resources and offer quality, affordable health coverage for their staff and members.
Supporters of HB 353 emphasize the impact this technical change could have on the nonprofit sector. Many nonprofits — especially small and mid-sized organizations — often struggle to provide competitive health benefits due to limited bargaining power in insurance markets. Expanding consortium eligibility to include 501(c)(3) entities could extend group health plan opportunities to thousands of nonprofit employees across Virginia, strengthening recruitment and retention and enhancing workforce stability.
Dr. Mariane Asad Doyle, Executive Director of the Center for Nonprofit Excellence-Virginia, stated on the subcommittee’s vote:
“This unanimous support reflects the shared understanding that strengthening nonprofits’ access to affordable health benefits is essential not only for our sector’s workforce but for the communities we serve. HB 353 would empower more charitable organizations to come together in new ways to support their teams, advance their missions, and build a stronger Virginia.”
In the days leading up to the subcommittee vote, nonprofit leaders, staff, and advocates were encouraged to share testimony illustrating why HB 353 matters and how expanded eligibility could benefit their organizations and the broader community.
With its success in subcommittee, HB 353 now advances to the full House Committee on Labor and Commerce for further consideration. Additional hearings and deliberations are expected in the coming weeks as the bill moves through the legislative process.
For more information, please contact Dr. Mariane Asad Doyle, mdoyle@thecneorg.