Education Funding Committee retains study bills, rejects several proposals and moves others to consent

The House Education Funding Committee met to consider eight bills related to school funding and education policy, retaining most for further work, voting “inexpedient to legislate” on one measure concerning public funds and religious schools, and approving a path forward for career and technical education certification and several study directives.

Committee Chair Representative Ladd opened the meeting and said the panel would attempt to expedite discussion and focus on the bills on the docket. The committee heard detailed explanations from Steve Appleby, director of the Department of Education, and debated statutory, constitutional and federal-law limits that affect how state education dollars can be used.

The committee retained HB 443, a bill “relative to terms of appointment of members on the Higher Education Commission,” after Department of Education testimony. Appleby told the panel the Higher Education Commission asked staff to check whether federal law continues to require such commissions. "We should check federal law because there was a requirement at one time in the Federal Higher Ed Act that states have these commissions,” Appleby said, adding the commission did not oppose reviewing whether it still needs to exist.

The panel voted ITL (inexpedient to legislate) on HB 137, which would have allocated excess statewide education property tax funds for local school and municipal purposes. Representative McGuire moved ITL and the motion carried 15–3. Representative Fellows said he would vote against ITL because he feared reducing state obligations could shift costs to local property taxpayers.

On HB 237, which would prohibit using special-education state funds, state aid, and differentiated aid for students not receiving special-education services, the committee moved ITL unanimously (16–0). Committee members and Department staff referenced the federal Individuals with Disabilities Education Act (IDEA) in discussion, saying federal law allows some braided or preventative uses of IDEA funds and that differentiated-aid formulas are designed to support districts’ overall service obligations rather than single out targeted line-item spending.

The committee approved HB 354, to establish alternative certification pathways for career and technical education (CTE) instructors, by voice and placed it on the consent calendar (vote recorded 18–0). Representative Peoples, who moved OTP (ought to pass), said the effort would help recruit qualified instructors, including retirees, into CTE classrooms.

The committee retained HB 491, which would create a study committee to consider alternative funding methods for public education and reduce reliance on local property taxes. Representative Spilsbury said the retained bill would allow an ad hoc committee to gather information through the summer and possibly recommend work in the 2026 cycle; the motion to retain passed 18–0.

HB 656, concerning local school districts’ authority to accept federal grants, was retained for further work (vote 18–0). Representative Brown, sponsor of the motion to retain, said the bill arose from concerns about “mission creep” where federal grants bring programs and nonacademic data collection into schools; members discussed balancing transparency with the district operational needs and statutory timelines for school boards.

The committee also retained HB 729, an appropriation to the Department of Education for legal help to recodify state education statutes, by unanimous vote (18–0). Members said a full recodification could be a multi-year task and discussed the need for realistic timelines and scopes; one member suggested seeking cost estimates or a request for proposals before committing funds.

On HB 549, a bill concerning the use of Education Freedom Account funds for religious schools and religious institutions of higher education, Representative Ladd moved ITL. The motion carried 10–8 on a roll call. Representative Ladd and others argued the state constitution’s Article 83 bars taxpayer dollars from direct support of religious instruction; Representative Damon and others framed their opposition as defending religious liberty for families and said federal jurisprudence on vouchers and private-school aid is evolving. Representative Ames noted federal court developments in neighboring states but emphasized New Hampshire’s constitution is explicit on the question.

Chair Ladd and committee leaders announced plans to form subcommittees over the interim on foundation funding, special education accounting and data, higher-education issues, and school building aid, and urged members to prepare research and reports. Members were asked to submit minority or majority reports on bills to the chair by the end of the week so they can be placed on the upcoming calendar.

Votes at a glance: • HB 443 — Retain in committee (motion: Rep. Irf; second: Rep. Damon). Vote recorded: retained (committee recorded yes votes; retained). • HB 137 — ITL (motion: Rep. McGuire). Vote: 15 yea, 3 nay. • HB 237 — ITL (motion: Rep. Ladd). Vote: 16 yea, 0 nay. • HB 354 — OTP (motion: Rep. Peoples). Vote: 18 yea, 0 nay; placed on consent calendar. • HB 491 — Retain (motion: Rep. Spilsbury). Vote: 18 yea, 0 nay. • HB 656 — Retain (motion: Rep. Brown). Vote: 18 yea, 0 nay. • HB 729 — Retain (motion: Rep. Spilsbury). Vote: 18 yea, 0 nay. • HB 549 — ITL (motion: Rep. Ladd). Vote: 10 yea, 8 nay; Rep. Ladd will file the majority report; Rep. Damon will file the minority report.

Why it matters: The committee’s decisions keep several major policy questions — alternative revenue sources for education, special-education funding mechanics, the role of federal grants and the possible recodification of education law — in active study and signal priorities for interim work. The ITL vote on HB 549 resolves, for now, a contentious question about whether taxpayer-funded education accounts may be used at religious schools under New Hampshire law.

The committee adjourned after scheduling subcommittee work and asking members to submit reports. Chair Ladd said retained bills and any interim work will be considered further when the committee reconvenes and when the House takes up calendar items in the next session.