NCLR, along with other national LGBTQ organizations, is part of a State Policy Working Group that addresses proposed state legislation affecting LGBTQ people across the country. The group works to support local advocates in advancing bills to protect LGBTQ people from discrimination in employment, housing, public accommodations, healthcare, and other areas, and to allow transgender and nonbinary people to obtain gender marker changes on identity documents.

The group also works to stop the dozens of hostile anti-LGBTQ bills introduced in state legislatures every year. Among the proposed laws that have been successfully defeated are bills that would permit discrimination against same-sex couples who marry, create broad religious exemptions to existing civil rights protections, allow religiously-affiliated child welfare agencies to refuse to place children with same-sex couples, prohibit transgender people from using restrooms and other facilities based on their gender identity, and deprive transgender youth of access to gender-affirming medical care and participation in school sports based on their gender identity.