HB 115-FN - AS AMENDED BY THE HOUSE
13Mar2025... 0651h
2025 SESSION
25-0061
07/02
HOUSE BILL 115-FN
AN ACT relative to universal eligibility for the education freedom account program.
SPONSORS: Rep. McDonnell, Rock. 25; Rep. Ladd, Graf. 5; Rep. Noble, Hills. 2; Rep. Soti, Rock. 35; Rep. Verville, Rock. 2; Rep. Cordelli, Carr. 7; Rep. Sweeney, Rock. 25; Rep. Seidel, Hills. 29; Rep. Alexander Jr., Hills. 29; Rep. Weyler, Rock. 14; Sen. Murphy, Dist 16; Sen. Ward, Dist 8; Sen. Sullivan, Dist 18; Sen. Innis, Dist 7
COMMITTEE: Education Funding
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AMENDED ANALYSIS
This bill increases the income eligibility for the EFA program in fiscal year 2026 and removes the income eligibility criteria beginning in fiscal year 2027.
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Explanation: Matter added to current law appears in bold italics.
Matter removed from current law appears [in brackets and struckthrough.]
Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
13Mar2025... 0651h 25-0061
07/02
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Twenty Five
AN ACT relative to universal eligibility for the education freedom account program.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 Education Freedom Accounts; Definitions; Eligible Student. Amend RSA 194-F:1, VI to read as follows:
VI. "Eligible student" means a resident of this state who is eligible to enroll in a public elementary or secondary school and whose annual household income at the time the student applies for the program is less than or equal to [350] 400 percent of the federal poverty guidelines as updated annually in the Federal Register by the United States Department of Health and Human Services under 42 U.S.C. section 9902(2). After June 30, 2026, no income threshold need be met in subsequent years for a kindergarten through grade 12 student to enroll in the EFA program, provided the student otherwise qualifies. Students in the special school district within the department of corrections established in RSA 194:60 shall not be eligible students.
2 Effective Date. This act shall take effect 60 days after its passage.
25-0061
12/9/24
HB 115-FN- FISCAL NOTE
AS INTRODUCED
AN ACT relative to universal eligibility for the education freedom account program.
FISCAL IMPACT:
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Estimated State Impact | ||||||
| FY 2025 | FY 2026 | FY 2027 | FY 2028 | ||
Revenue | $0 | $0 | $0 | $0 | ||
Revenue Fund(s) | None | |||||
Expenditures* | $0 | Indeterminable | ||||
Funding Source(s) | Education Trust Fund | |||||
Appropriations* | $0 | Statutory Appropriation Under RSA 194-F:11 for Any Amount Necessary to Fund Program | ||||
Funding Source(s) | Education Trust Fund | |||||
*Expenditure = Cost of bill *Appropriation = Authorized funding to cover cost of bill | ||||||
| ||||||
Estimated Political Subdivision Impact | ||||||
| FY 2025 | FY 2026 | FY 2027 | FY 2028 | ||
Local Revenue | $0 | Indeterminable | ||||
Local Expenditures | $0 | Indeterminable | ||||
METHODOLOGY:
This bill eliminates the income requirement for eligibility for the education freedom account (EFA) program. As of September 2024, 5,321 students were in the EFA program with an annualized cost estimated at $27.7 million with the grant averaging $5,204 per student. The average adequacy education grant (FY 2026 preliminary estimates as of November 15, 2024) to public district schools is $7,108, which includes cost of an opportunity for an adequate education, and extraordinary needs and hold harmless grants. Students entering the program under this bill would likely receive a grant less than the current average, since the newly eligible population would not be eligible for free or reduced-priced meal (F&R) differentiated aid. It is estimated that the average EFA grant for the newly eligible population under this bill would be approximately $4,419 (assuming 7% are eligible for special education differentiated aid).
The Department of Education states this bill will result in an indeterminable number of new students accessing the program. The following is information relative to the different situations in which a student may access the EFA program:
As students potentially leave traditional district schools and join the EFA program, districts may feel pressure to reduce their local expenditures to better fit the reduced population served. It is unknown the impact this would have on local expenditures, but this could potentially result in an indeterminable decrease.
It should be noted, that under current law, EFA and charter school grants are paid based on current year enrollments, while district adequacy grants are paid based on the previous school year enrollments (one year lag).
AGENCIES CONTACTED:
Department of Education
| Date | Amendment |
|---|---|
| March 5, 2025 | 2025-0651h |
| March 11, 2025 | 2025-0916h |
| March 11, 2025 | 2025-0922h |
| May 13, 2025 | 2025-2147s |
| June 4, 2025 | 2025-2681s |
| Date | Body | Type |
|---|---|---|
| Jan. 16, 2025 | House | Hearing |
| March 4, 2025 | House | Exec Session |
| March 5, 2025 | House | Floor Vote |
| April 1, 2025 | House | Exec Session |
| April 2, 2025 | House | Floor Vote |
| April 22, 2025 | Senate | Hearing |
| June 5, 2025 | Senate | Floor Vote |
June 5, 2025: Pending Motion Committee Amendment # 2025-2147s; 06/05/2025; SC 25
June 5, 2025: Sen. Abbas Moved Laid on Table, MA, VV; 06/05/2025; SJ 15
May 19, 2025: Committee Report: Ought to Pass with Amendment # 2025-2147s, 06/05/2025, Vote 3-2; SC 24
April 15, 2025: Hearing: 04/22/2025, Room 101, LOB, 10:15 am; SC 18
April 11, 2025: Introduced 03/27/2025 and Referred to Education; SJ 10
April 10, 2025: Ought to Pass: MA RC 188-181 04/10/2025 HJ 12 P. 31
April 2, 2025: Minority Committee Report: Inexpedient to Legislate
April 2, 2025: Majority Committee Report: Ought to Pass 04/02/2025 (Vote 14-11; RC) HC 19 P. 15
March 26, 2025: Executive Session: 04/01/2025 10:00 am LOB 210-211
March 18, 2025: Division II Work Session: 03/19/2025 10:00 am LOB 209
March 14, 2025: Division II Work Session: 03/18/2025 10:00 am LOB 209
March 13, 2025: Referred to Finance 03/13/2025 HJ 8 P. 44
March 13, 2025: Ought to Pass with Amendment 2025-0651h: MA RC 198-180 03/13/2025 HJ 8 P. 42
March 13, 2025: FLAM # 2025-0922h (Rep. Ames): AF RC 171-205 03/13/2025 HJ 8 P. 40
March 13, 2025: FLAM # 2025-0916h (Rep. Luneau): AF RC 170-205 03/13/2025 HJ 8 P. 38
March 13, 2025: Amendment # 2025-0651h: AA VV 03/13/2025 HJ 8 P. 37
March 5, 2025: Minority Committee Report: Inexpedient to Legislate
March 5, 2025: Majority Committee Report: Ought to Pass with Amendment # 2025-0651h 03/05/2025 (Vote 10-8; RC)
Feb. 27, 2025: Executive Session: 03/05/2025 11:00 am LOB 205-207
Jan. 8, 2025: Public Hearing: 01/16/2025 01:00 pm LOB 205-207
Jan. 6, 2025: Introduced 01/08/2025 and referred to Education Funding HJ 2 P. 6