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.
On Friday, HB 353 achieved another major milestone: the bill passed unanimously through the Virginia Senate, demonstrating strong bipartisan support for expanding nonprofits’ ability to offer affordable, high-quality health coverage to their employees.
HB 353, sponsored by 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 the Center for Nonprofit Excellence 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.
“Virginia’s nonprofit sector employs more than 500,000 people and serves as a backbone of our communities,” said Dr. Mariane Asad Doyle, Executive Director and CEO of the Center for Nonprofit Excellence (CNE). “This targeted amendment will expand access to affordable health coverage for nonprofit employees across the Commonwealth. CNE is proud to advocate for policy solutions that strengthen the nonprofit workforce and the communities they serve.”
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 unanimous passage in both the House and the Senate, HB 353 now continues moving through the legislative process to the Governor’s desk for final approval.
For more information, please contact Dr. Mariane Asad Doyle at mdoyle@thecne.org