This bill introduces new regulations on state and local government spending, tax rates, and debt management in New Hampshire. It mandates that total annual spending, tax rate changes, and debt increases be capped based on a combination of the 4-year moving average rate of inflation (up to 2.5 percent) and the annual percentage change in the state's population. Additionally, any excess revenues, up to 10 percent over the annual revenue limit, must be deposited into a rainy day fund, which can only be used for expenses within the established spending limits. Any revenues exceeding the rainy day fund cap may be refunded or used to repay debts with voter approval.

Furthermore, the bill establishes a right of action for citizens who believe that the state or its political subdivisions are violating these spending limits. It allows for a jury trial within 12 months for such cases, and if the jury finds in favor of the citizen, they are entitled to reasonable attorney's fees, court costs, and a potential award of up to 20 times their attorney's fees and costs. The bill will take effect on April 1, 2027.