On January 28, 2024, the New Hampshire Legislature introduced House Bill 748, a significant piece of legislation aimed at reforming educational funding through the establishment of the Local Education Freedom Account (LEFA) program. This bill proposes a new grant system that would provide financial support to students enrolled in public schools, charter schools, home education programs, and kindergarten, effectively doubling the per-pupil funding compared to existing state adequacy grants.

The LEFA program is designed to enhance educational opportunities by allowing local school districts to administer grants that can be used for qualifying educational expenses. Under the proposed framework, the base aid per pupil would increase from $4,265.64 to $8,531.28, with similar increases for free and reduced-price meal eligibility aid, special education aid, and English language learner aid. Notably, the scholarship organizations managing these grants could retain up to 10% for administrative costs.

A key provision of the bill stipulates that students must be enrolled in a public school or a charter school at the time of application, with specific eligibility criteria for home-schooled students and kindergarteners. This requirement aims to ensure that the program primarily benefits students already engaged in the public education system.

The bill has sparked discussions regarding its fiscal implications. While the state would reimburse local districts for part of the LEFA expenditures, the overall financial impact remains indeterminate, contingent on the number of eligible students participating in the program. For instance, existing public school students would not significantly alter state expenditures, while students transferring from charter schools could lead to cost savings for the state.

Debate surrounding House Bill 748 has highlighted concerns about potential inequities in funding distribution and the administrative burden on local districts. Critics argue that the program could divert essential resources from public schools, while proponents assert that it offers much-needed flexibility and support for diverse educational needs.

As the bill progresses through the legislative process, its potential to reshape educational funding in New Hampshire remains a focal point of discussion. If enacted, the LEFA program could be operational by the 2026-2027 school year, marking a pivotal shift in how educational resources are allocated and utilized across the state. The outcome of this legislation will likely have lasting implications for students, educators, and the broader educational landscape in New Hampshire.