Governor Dunleavy Vetoes Government Expansion Bill Passed Unanimously by Legislature

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On June 18, 2026, Governor Dunleavy vetoed HB 23, a Democrat sponsored bill that passed both the House and the Senate unanimously. HB 23 attempts to change the name of the Alaska’s Commission for Human Rights to the Commission for Civil Rights and expand it’s authority.

Under current Alaska law, the Alaska Commission for Human Rights exempts nonprofit organizations from its jurisdiction regarding certain employment discrimination claims. HB 23 would remove the nonprofit exemption, placing approximately 44,000 nonprofit employees under its jurisdiction.

Opponents express concerns about the impact of the bill on small religious and faith-based organizations, arguing that the bill unduly burdens these organizations and could lead to secular government encroachment on religious rights.

Proponents of the bill claim it levels the playing field and holds nonprofit employers to the same standards as for-profit employers. Proponents cite abuses that have occurred in large nonprofits such as hospitals and nonprofits run by Alaska Native Corporations as real harm caused by the nonprofit exemption provided in current law. The bill passed both the House and Senate with zero dissenting opinions.

The Governor’s reason for vetoing the bill focused on government overreach and lack of accountability for commissioners: “While I support protecting Alaskans from unlawful discrimination, this bill expands the Commission’s reach over nonprofit employers, including charitable, educational, and religious organizations. That expansion creates uncertainty for small community organizations and risk unnecessary administrative proceedings and litigation. Additionally, the bill limits the Governor’s ability to ensure accountability for commissioners serving on a commission housed within the Office of the Governor.”

HB 23 is one of nine bills vetoed by the Governor on June 18, 2026. Today, June 19, is the last day of the Legislature’s special session, called in order to push through a gasline bill. The Legislature could attempt a veto override by the end of today or within 5 days after convening a second special session, which the Governor has said he would call if the Legislature does not pass a gasline bill.