New Hampshire’s Education Funding Transition Means Reduced Aid for 109 Communities

NHFPI's Ben Reynolds released a new analysis of shifts in New Hampshire's State education funding formula. In 2026, 109 New Hampshire communities lost an average of $137,115.96 in school funding and cuts will grow every two years as the Hold Harmless Grant continues to phase out. Municipal officials, school boards, and district staff will need to begin planning for continued reductions through at least 2035.

Shifting Sources: A Brief Look at Long-Term State Revenue Trends in New Hampshire

State Fiscal Year 2025 revenues dropped 9.4 percent in the General Fund and Education Trust Fund compared to last year after adjusting for inflation. Revenues that surged after the pandemic, fueled by corporate profits and real estate sales, have since declined, underscoring New Hampshire’s reliance on a few volatile sources and the impact of tax policy changes like business tax reductions and the repeal of the Interest and Dividends Tax.

Headwinds Hit the New Hampshire Economy

The economy, both nationally and in New Hampshire, entered 2025 with significant strengths and key challenges and now faces new uncertainties at a potential inflection point, according to a new analysis from NHFPI.