This bill proposes significant changes to the Education Freedom Account (EFA) program by increasing the income eligibility threshold for participants in fiscal year 2026 and eliminating income eligibility criteria entirely starting in fiscal year 2027. Specifically, the bill amends the definition of "eligible student" in RSA 194-F:1, VI, changing the income limit from 350 percent to 400 percent of the federal poverty guidelines. Furthermore, it states that after June 30, 2026, no income threshold will be required for kindergarten through grade 12 students to enroll in the EFA program, provided they meet other qualifications.

The fiscal impact of this bill is indeterminable, as it is expected to increase the number of students accessing the EFA program, which currently serves over 5,300 students at an annualized cost of approximately $27.7 million. The average grant for new participants is estimated to be around $4,419, which is lower than the current average due to the absence of free or reduced-price meal eligibility for the newly eligible population. The bill also outlines potential cost implications for the state and local districts, depending on whether students transition from charter schools or traditional public schools to the EFA program. Overall, the bill aims to broaden access to educational funding for families, regardless of income, while also considering the financial ramifications for the state and local education systems.

Statutes affected:
Introduced: 194-F:1
As Amended by the House: 194-F:1