By GARRY RAYNO, InDepthNH.org
CONCORD — Expanding the Education Freedom Account program to every child in the state regardless of parental income was given initial approval Thursday by the House.
House Bill 115 would remove any income cap for parents for the 2026-2027 school year, which would increase the cost of the program to $60 million to $70 million, according to figures from the administrator of the program.
The increase would come at a time when the state faces one of its most difficult budgets to balance in many years.
Under the bill, the income cap would expand from the current limit of 350 percent of the federal poverty limit to 400 percent for next school year, which would raise the cap for a family of four from about $110,000 to $128,600.
While the bill was initially approved on a 198-180 vote, it will be reviewed by the House Finance Committee before a final vote.
Supporters of expanding the program said it sends a message that all parents can “shop around” for the best educational fit for their child.
They called the program, which has grown from 1,635 students its first year to 5,884 this its fourth year in operation, wildly successful.
The cost of the program, which draws money from the Education Trust Fund, has increased from $8.1 million to over $30 million this school year.
Kate Baker Demers, the Executive Director of the Children’s Scholarship Program, which administers the program, told Division 2 of the House Finance Committee last week, that under universal access, she projected the number of students to increase to 8,566 next school year at a cost of about $42 million, to nearly 13,000 students during the 2026-2027 school year at a cost of $62 million.
Gov. Kelly Ayotte’s proposal would retain the 350 percent poverty cap next fiscal year and then remove the cap for the 2026-2027 school year, but require students joining the program to have spent the previous year in a traditional public school.
At Thursday’s House session, Rep. Rick Ladd, R-Haverhill, said the bill “sends the clear message education consumers should shop around for a (successful program), that education choice options are now available here in New Hampshire.”
Opponents tried to require parents to qualify annually for income eligibility instead of just once and then not again as long as their child remains in the program and to subject the program to budgetary constraints to not exceed the appropriation for the program.
The program has continually been over budget and the statute allows the program to draw money from the state’s general fund if there is not enough money in the Education Trust Fund, which is expected to be the case during the next two fiscal years.
Rep. David Luneau, D-Hopkinton, proposed an amendment for annual income certification, saying that would ensure that the state money paying for the program is a good investment for taxpayers with strong student achievement and that funds are not misappropriated as they have been in other states.
“Tuesday towns across the state passed resolutions calling for accountability for this program,” he noted.
Rep. Valerie McDonnell, R-Salem, called Luneau’s amendment one of many attempts to dismantle the EFA program.
“I look forward to the time when children will no longer be turned away from education because of their zip code or their family’s ability to pay,” she said, “by providing school choice to every New Hampshire family and guaranteeing children are never turned away again.”
But Rep. Hope Damon, D-Croydon, said the bill will allow affluent families already sending their children to private or religious schools to receive taxpayer grants that could total $100 million.
The bill fails to meet their obligation to taxpayers to ensure their money is spent wisely at a time of great fiscal uncertainty, she said.
Rep. Daniel LeClerc, D-Amherst, urged those who wanted to protect the program to vote down the bill which he said is fiscally unsustainable with the state facing a budget deficit.
“We have a choice to make. Wouldn’t it be nice to pass a budget with no increase in fees instead of spending $11 million for those already well off and can afford (sending their children to private schools),” he said. “Don’t risk a good thing by spending money we don’t have.”
The vast majority of students in the program were in private or religious schools or homeschooled before it began. Very few students have left traditional public schools to find alternative educational settings.
The program was sold as a pathway for low-income parents to afford alternative education for their children if they did not do well in traditional public schools.
The Senate Thursday passed a bill granting universal access to the EFA program, but capped enrollment at 10,000 students and established a priority schedule to accept students when the enrollment cap is reached.
Garry Rayno may be reached at garry.rayno@yahoo.com.