SB 295-FN - AS AMENDED BY THE SENATE
03/13/2025 0793s
2025 SESSION
25-0955
07/02
SENATE BILL 295-FN
AN ACT relative to education freedom accounts.
SPONSORS: Sen. Sullivan, Dist 18; Sen. Gannon, Dist 23; Sen. Murphy, Dist 16; Sen. Innis, Dist 7; Sen. Avard, Dist 12; Sen. Pearl, Dist 17; Sen. Gray, Dist 6; Rep. McDonnell, Rock. 25; Rep. Noble, Hills. 2; Rep. Rice, Hills. 38; Rep. Notter, Hills. 12
COMMITTEE: Education Finance
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AMENDED ANALYSIS
This bill:
I. Increases the number of students eligible for education freedom accounts by removing household income thresholds.
II. Removes certain conditions tied to education freedom account funds.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
03/13/2025 0793s 25-0955
07/02
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Twenty Five
AN ACT relative to education freedom accounts.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 Education; Education Freedom Accounts; Definitions. 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 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). No income threshold need be met in subsequent years, 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 New Paragraphs; Education; Education Freedom Accounts; Application for an Education Freedom Account. Amend RSA 194-F:3 by inserting after paragraph I the following new paragraphs:
I-a. For the 2025-2026 fiscal year, and each fiscal year thereafter, total enrollment for the education freedom account program shall be capped at 10,000. However, in any fiscal year when student applications for the education freedom account program are equal to or greater than 90 percent of the total enrollment cap applicable to that fiscal year, the total enrollment cap shall increase by 25 percent. The department shall publish on its website information identifying the total enrollment cap when it is increased pursuant to this paragraph.
I-b. In any fiscal year, if student applications during the spring application window exceed the program cap, priority shall be determined in the following order:
(a) A student currently enrolled in the EFA program;
(b) A sibling of a student currently enrolled in the EFA program;
(c) A child with disabilities as defined by RSA 186-C:2;
(d) A student whose family income is less than or equal to 350 percent of the federal poverty guidelines as updated annually by the United States Department of Health and Human Services under 42 U.S.C. section 9902 (2).
I-c. In any fiscal year, for students applying after June 30 during the fall application window, only students who meet the priority categories as defined by RSA 194-F:3, I-b(b)-(d) are eligible for pro-rated accounts. The scholarship organization shall prioritize current EFA students for renewal in the spring by reserving space for them under that year’s enrollment cap before awarding new EFA accounts for fall applicants.
3 Education; Education Freedom Accounts; Application for an Education Freedom Account. Amend RSA 194-F:3, III(b) to read as follows:
(b) The student on whose behalf the parent is applying is an eligible student and meets the priority guidelines when applications exceed the enrollment cap.
4 New Paragraph; Education; Education Freedom Accounts; Authority and Responsibilities of the Scholarship Organization. Amend RSA 194-F:4 by inserting after paragraph IV the following new paragraph:
IV-a. The scholarship organization shall establish and publicize no less than 2 deadlines by which application forms must be submitted.
5 Effective Date. This act shall take effect 60 days after its passage.
25-0955
1/7/25
SB 295-FN- FISCAL NOTE
AS INTRODUCED
AN ACT expanding the number of students eligible for education freedom accounts.
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 | 2025-0691s |
| March 6, 2025 | 2025-0793s |
| March 12, 2025 | 2025-0887s |
| March 12, 2025 | 2025-0886s |
| March 12, 2025 | 2025-0963s |
| Date | Body | Type |
|---|---|---|
| Feb. 12, 2025 | Senate | Hearing |
| Senate | Floor Vote | |
| March 13, 2025 | Senate | Floor Vote |
| March 27, 2025 | Senate | Floor Vote |
| April 15, 2025 | House | Hearing |
| May 2, 2025 | House | Exec Session |
April 23, 2025: Executive Session: 05/02/2025 09:30 am LOB 205-207
March 31, 2025: Public Hearing: 04/15/2025 01:45 pm LOB 205-207
March 28, 2025: Introduced (in recess of) 03/27/2025 and referred to Education Funding HJ 11
March 27, 2025: Ought to Pass: RC 16Y-8N, MA; OT3rdg; 03/27/2025; SJ 9
March 18, 2025: Committee Report: Ought to Pass, 03/27/2025, Vote 5-2; SC 14
March 13, 2025: Ought to Pass with Amendment #2025-0793s, RC 16Y-8N, MA; Refer to Finance Rule 4-5; 03/13/2025; SJ 7
March 13, 2025: Sen. Prentiss Floor Amendment # 2025-0886s, RC 8Y-16N, AF; 03/13/2025; SJ 7
March 13, 2025: Sen. Altschiller Floor Amendment # 2025-0887s, RC 8Y-16N, AF; 03/13/2025; SJ 7
March 13, 2025: Sen. Perkins Kwoka Floor Amendment # 2025-0963s, RC 8Y-16N, AF; 03/13/2025; SJ 7
March 13, 2025: Committee Amendment # 2025-0793s, AA, VV; 03/13/2025; SJ 7
March 7, 2025: Committee Report: Ought to Pass with Amendment # 2025-0793s, 03/13/2025, Vote 3-2; SC 12
March 5, 2025: Committee Report: Ought to Pass with Amendment # 2025-0691s, Vote 3-2 SC 12
Feb. 6, 2025: Hearing: 02/12/2025, Room 100, SH, 03:20 pm; SC 9
Jan. 30, 2025: Introduced 01/30/2025 and Referred to Education Finance; SJ 4