Budget & Taxes

This bill expands the permitted uses of impact fees - charges imposed on new development - to include purchasing safety equipment for police, fire, and emergency services. It directly affects municipalities that collect impact fees, allowing them to allocate these funds toward existing safety vehicle fleets (like police cars or fire trucks) rather than solely for infrastructure like roads or water systems. The key change amends the definition of "impact fee" in state law to explicitly authorize this use, adding it to the existing list of approved purposes. This is a concrete policy adjustment to the existing fee structure, not a new program.

HB 1787 modifies New Hampshire's statewide education property tax system by requiring all tax revenues to be collected by local officials and deposited directly into the state education trust fund, rather than being handled by municipalities. It updates the low- and moderate-income homeowners property tax relief program and establishes a committee to study this program's effectiveness. The bill also mandates that tax bills include clear information about available relief programs, including the low-income homeowner program. These changes affect homeowners (particularly those eligible for tax relief) and ensure education funding flows through a centralized state trust fund for grants and tax relief payments. The tax rate is set to generate $378 million annually, increasing by 2% each year.

SB 517 allows New Hampshire school districts to expand free meal eligibility to 200% of the federal poverty level, raising the current standard. Districts opting into this program will receive state reimbursement covering 50% of the cost difference between free meals and reduced-price meals, with the remaining 50% covered by the school district. The bill appropriates $107,000 for administrative support and $250,000 for meal reimbursements and software to enable online application systems for free/reduced-price meals. This directly affects low-income students and school districts that choose to implement the expanded eligibility starting July 2026.

This bill eliminates existing premiums for New Hampshire's Medicaid programs (Granite Advantage for adults and CHIP for children) and limits any cost-sharing fees under expanded Medicaid to $5 per service. It repeals current premium requirements that generated approximately $16 million annually in state revenue, requiring a $16 million appropriation in FY2027 to offset this loss. The changes take effect July 1, 2026, with the $5 cost-sharing cap applying starting October 1, 2028. The bill directly affects current Medicaid recipients by removing premium payments and modifies state budgeting for the Medicaid program.

HB 1411 requires New Hampshire's state treasurer to withhold payments owed to the federal government if the state loses federal aid due to a presidential executive order or the federal government violates a court order requiring aid release. The bill mandates the treasurer to calculate the lost aid amount, withhold corresponding state payments (up to that amount), and hold them in escrow until the federal aid is restored. This directly affects the state treasurer's payment obligations to the federal government and applies only when federal aid is unlawfully withheld. The bill does not create new programs or costs, as confirmed by its fiscal note showing $0 impact. It aims to safeguard state resources by linking withheld state payments to restored federal aid.