Adjutant general outlines recruiting struggles, National Guard vacancies and growing veterans services demand

Concord — Major General David Michalaitis, the Adjutant General and commissioner of the Department of Military Affairs and Veterans Services, told the House Finance Committee the department meets most of its operating costs with federal funds but is managing 19 current vacancies — 18 of which carry federal funding or federal/state cost share.

Michalaitis said the department’s primary mission supports more than 3,000 service members and federal civilians, while a secondary mission serves more than 90,000 New Hampshire veterans. He told lawmakers that more than 80% of the department’s operating budget is federal funds and only about 17% is state general fund.

Recruitment and retention: the adjutant general described recruiting challenges for the all‑volunteer force. The New Hampshire Army National Guard needs roughly 200 new soldiers per year to maintain formations; turnover and reenlistment patterns mean the department is exploring incentives such as a state retention bonus and referral payments. He said the Air National Guard assignments are closer to fully manned but the Army side is short.

Veterans cemetery and services: department leaders described a rise in cemetery costs tied to a federal reimbursement rate increase and a wider set of eligible veterans. The state veterans cemetery accepts veterans, their spouses and dependents; fees charged to families have not kept pace with costs and some fees date back decades, staff said. Michalaitis and his team told the committee the department is reviewing cemetery fees and staffing allocation across cemetery and veteran services, partly because the cemetery expansion and maintenance activities now rely on a mix of federal reimbursements, agency income and trust fund resources.

Federal workforce risks: Michalaitis said executive orders at the federal level have driven an 8% reduction in the federal civilian workforce in some agencies, which could reduce capacity to support National Guard missions; he said most of the 19 current vacancies are in federally funded positions that support the guard’s mission and none are generally aligned to the veteran services portfolio.

What’s next: Michalaitis asked the committee to note the department’s reliance on federal funds and to consider vacancies that are 100% federally reimbursed or largely federally supported. He asked for continued coordination with the treasury and legislative budget staff as capital projects and armory maintenance proceed.