New Hampshire allocates Fidelity fund to boost UNH endowments and student scholarships

The House Finance Division I of the New Hampshire House of Representatives convened on March 25, 2025, to discuss the amendment concerning the Treasury College Savings Commission, specifically focusing on the management of 529 college savings funds. The meeting highlighted the ongoing financial relationship between the state and Fidelity Investments, which manages approximately $16 billion in college savings for New Hampshire residents.

The amendment aims to allocate funds from the 529 plan to support the University of New Hampshire (UNH) and the broader university system. This funding strategy is part of a broader plan to balance the state budget while ensuring that educational institutions receive necessary financial support. Representatives discussed the historical context of these funds, noting that they are derived from individual contributions rather than state money, and that Fidelity's management has yielded positive returns for investors.

A significant point raised during the meeting was the distribution of funds, with 30% allocated to college endowments and 70% directed towards individual scholarships. This shift aims to increase the scholarship amounts available to students, which have previously been as low as $500. The current average scholarship amount is around $1,200, but representatives expressed concerns about the adequacy of these funds for students facing rising tuition costs.

Concerns were also voiced regarding the impact of reallocating these funds on individual accounts. Representatives assured that the changes would not affect the savings of families who have invested in the 529 plan, emphasizing that the funds being discussed are Fidelity's payments to the state for the use of the New Hampshire name on their investment products.

The meeting concluded with a focus on the importance of maintaining financial support for higher education while navigating the complexities of the state budget. The discussions underscored the ongoing commitment to enhancing educational funding in New Hampshire, particularly as the state seeks to balance its financial obligations with the needs of its students and institutions.