This bill aims to repeal the funding cap on targeted aid for education adequacy grants, specifically removing the limitation that restricts additional targeted aid to $3,750 per pupil for municipalities with an average daily membership in residence (ADMR) of 5,000 or more. The legal language being amended includes the deletion of RSA 198:41, I(e), which previously imposed this cap, and the insertion of provisions that allow for the addition of extraordinary need grants and fiscal capacity disparity aid grants without the previous limitations.

The fiscal impact of this bill is significant, particularly for the City of Manchester, which is expected to see an increase in targeted aid of approximately $9 million per year starting in FY 2028. The bill is set to take effect on July 1, 2026, and while it does not project any immediate revenue changes for the state, it anticipates increased expenditures from the Education Trust Fund to cover the costs associated with the removal of the cap on targeted aid.

Statutes affected:
Introduced: 198:41
HB1831 text: 198:41