The bill, HB 1-A, is an appropriation act that allocates funds for various state departments for the fiscal years ending June 30, 2026, and June 30, 2027. It includes provisions requiring prior approval from the fiscal committee and the governor for any revenue expenditures exceeding estimates, mandates that appropriations for indirect costs be transferred to the state’s general fund, and ensures that certain appropriations will not lapse until June 30, 2027. The bill also addresses the management of office space within state buildings and grants the Lottery Commission authority to seek funding for lottery games.

Significant changes include the abolition of numerous positions across various state departments, such as the Developmental Disabilities Council and the Department of Corrections, with specific timelines for these eliminations. The bill also requires state branches, including judicial and legislative, to reduce their general fund appropriations, resulting in substantial budget cuts across multiple departments, including a $23 million reduction for the Department of Health and Human Services each fiscal year. Additionally, the Department of Information Technology is mandated to reduce shared appropriations by $5 million for both fiscal years, and the New Hampshire Retirement System will cut other fund appropriations by over $4 million. The overall financial framework anticipates a total general fund revenue of approximately $1.7 billion for FY 2026 and $1.75 billion for FY 2027, with the act set to take effect on July 1, 2025.