What the State Budget Means for Our Communities.
New Hampshire’s newly passed biennial budget for Fiscal Years 2026 and 2027 includes some high-profile investments in public safety retirements and school aid, but buried within the final package are major losses that could profoundly impact working families, students, and vulnerable communities across the state.
Here’s a breakdown of how key areas of the budget could affect New Hampshire families and communities.
Medicaid: Coverage Costs Rise, Access Shrinks
The new budget quietly shifts health care costs onto low- and moderate-income families enrolled in Medicaid:
New monthly premiums for Medicaid and CHIP enrollees could reach $270 per family, forcing working parents to choose between keeping their child insured or paying for groceries and rent.
Annual income checks—suspended during the pandemic—are back, meaning families who miss paperwork deadlines or experience unstable earnings may lose coverage.
Work requirement provisions could soon return. The budget directs the state to apply for a federal waiver that would require able-bodied adults without dependents to work or volunteer to maintain eligibility.
Higher prescription copays (up to $4 per prescription) are also on the table, a move that could make it harder for people to stick to vital medication regimens.
These changes disproportionately affect Granite Staters living paycheck to paycheck and come at a time when health care and prescription costs continue to climb.
Public Schools vs. Private Vouchers
New Hampshire’s public schools face continued pressure from an expanding school voucher system:
The budget allows for continued growth of the state’s Education Freedom Accounts, which direct public funds to private and religious schools.
According to some estimates over $100 million may be diverted from public education if voucher expansion continues unchecked—putting more strain on local property taxpayers who must make up the difference.
While some new targeted aid is included, the overall funding formula remains unequal, and communities with low property wealth still struggle to provide equitable opportunities.
No Investment in Housing
Despite a well-documented housing shortage that’s pricing residents out of their communities, this budget includes no new investment in housing development or affordability programs.
That means:
No additional funds to spur affordable housing construction.
No new tools to help municipalities meet the moment.
No new funding was allocated to address rising rents, overcrowding, or homelessness.
New Hampshire has one of the lowest vacancy rates and highest rent burdens in the country. This budget doesn’t meet the scale of the crisis.
Cuts to Higher Education
The University System of New Hampshire sees a $35 million cut, an 18% drop from previous funding levels. The result?
Fewer resources for campuses already struggling with declining enrollment.
Greater reliance on tuition and fees, putting the dream of higher education further out of reach for working-class students.
Reductions to Human Services
The Department of Health and Human Services—already operating under serious strain—faces a $51 million “back-of-budget” cut, raising alarms about the future of essential services, including:
Mental health and substance use treatment programs.
Child care assistance.
Disability services and support for vulnerable families.
The agency has already eliminated positions, and advocates warn the reductions could deepen the state’s care and staffing shortages.
Undermining Child Protection
The budget defunds and effectively dismantles the Office of the Child Advocate, an independent agency that oversees child protection services. While not every detail of staffing reductions is public, this move will significantly reduce independent oversight and weaken safeguards for children at risk of abuse or neglect.
Renewable Energy Reversed
The budget sweeps $20 million from the Renewable Energy Fund—money previously used to reduce energy costs, support clean energy innovation, and lower greenhouse gas emissions. New Hampshire already ranks among the highest in the country for utility bills. Redirecting these funds may increase costs for working families while undermining progress toward energy resilience.
Survivors Still Waiting
The state has committed only $20 million to settle claims tied to abuse at the former Youth Detention Center—despite some estimates placing the need well over $100 million. Advocates have raised concerns about the adequacy of the funding.
What Was Left on the Cutting Room Floor
Other major issues were notably absent from the final deal:
Child care affordability: Despite widespread bipartisan concern about the cost and availability of child care, the budget includes no new funding to expand access or increase provider capacity.
Workforce development: With employers across sectors facing persistent shortages, the budget makes no meaningful new investments in training, certification pathways, or career pipelines.
A Budget That Leaves Critical Gaps
While the budget includes important investments in areas like retirement benefits, it leaves critical gaps in health care, housing, education, and child protection. These omissions could have long-lasting impacts on families across the state.
