relative to the cost of an opportunity for an adequate education, extraordinary need grants, fiscal capacity disparity aid, and determination of education grants.

HB 563 updates New Hampshire's school funding formula to better address student needs and district wealth disparities. It increases the base per-pupil cost for an "adequate education" to $4,351 (plus additional amounts for students eligible for free/reduced meals, English language learners, and those in special education) and establishes two new grant programs: "Extraordinary Need Grants" for high-poverty districts and "Fiscal Capacity Disparity Aid" for low-wealth districts. Both grant programs use tiered formulas based on property wealth per student, with all funding amounts increasing annually by 2% starting in 2027. The bill affects all public school districts in New Hampshire, directly changing how state education aid is calculated and distributed. It takes effect July 1, 2026.