A new federal reconciliation law signed on July 4 will bring sweeping changes to tax and social support programs, with major implications for Granite Staters. According to NHFPI's analysis, the law makes permanent many tax cuts from 2017, and pays for some of the forgone revenue by reducing access to Medicaid, supports for food assistance, and clean energy investments, shifting costs and risks onto low- and moderate-income households.
Federal spending in New Hampshire totaled $21.8 billion in Federal Fiscal Year 2022 -an amount equal to about 21 percent of the state’s total economy. These funds include Social Security, Medicaid, military contracts, tax credits, higher education support, and wages for federal workers - highlighting the broad impact of federal dollars across New Hampshire’s economy.
New Hampshire’s ongoing early care and education (ECE) shortage is characterized by high tuition costs to families, low wages for ECE professionals, limited (if any) profits for providers, and adverse financial impacts for Granite State families, businesses, and economy.
NHFPI’s report examines the House’s proposed budget for State Fiscal Years 2026 and 2027, which reduces funding for services by over $500 million compared to the Governor’s proposal. It lowers funding for Medicaid, care for individuals with disabilities, and community mental health services while eliminating several state agencies and functions.
A new NHFPI analysis finds that business tax rate reductions have cost New Hampshire approximately $1 billion in forgone revenue since 2015.
As the House Finance Committee holds its first public hearing on the State Budget, NHFPI is releasing a detailed, data-driven analysis of the Governor’s State Budget Proposal for Fiscal Years 2026 and 2027. This report offers essential context for the budget’s priorities, trade-offs, and potential impacts on New Hampshire’s fiscal future.
