increasing the percentage of nonpublic school scholarships awarded to students who qualify for the federal free and reduced-price meal program.

SB 296 increases the minimum percentage of education scholarships for nonpublic schools that must go to low-income students from 40% to 50%. It requires scholarship organizations to award at least half of their funds to students who qualified for federal free/reduced-price lunch in the prior school year, verified through household income at or below 300% of the federal poverty level. The bill also allows students temporarily losing eligibility to retain their scholarship for one "probationary year" before becoming ineligible. This applies directly to scholarship organizations distributing funds under New Hampshire's education freedom account program, affecting families seeking nonpublic school funding.