requiring catastrophic special education state aid funding to be drawn from the education trust fund.

HB 742 changes how New Hampshire funds special education costs for school districts with "catastrophic" needs (where costs exceed 3.5 times the state average per pupil). It removes the current system of prorating aid when funds are insufficient and requires all such state aid to come directly from the Education Trust Fund. This ensures full payment to qualifying districts without proportional cuts, affecting school districts with high special education costs. The fiscal note estimates this would increase annual state spending by approximately $16.4 million starting in 2026, as districts previously received only about 67.5% of requested funds.