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Senate panel debates bill to withhold state payments to federal government amid federal funding uncertainty
Summary
Sen. Rebecca Perkins Kwoka introduced SB 602 to allow the state to withhold payments to the federal government if federal aid is suspended; committee members raised fiscal‑note concerns that the federal Treasury Offset Program could reduce federal funds to the state and jeopardize cash flow.
Senate Finance heard public testimony on SB 602, a bill that would permit the state to withhold certain payments to the federal government in response to suspended federal aid.
Senator Rebecca Perkins Kwoka, the prime sponsor, said federal dollars account for roughly a third of New Hampshire's budget and that the bill would give the state a mechanism to protect its ability to provide services if federal funding is uncertain. "We need to be ready for New Hampshire to stand up for itself," she told the committee.
Committee members focused on the fiscal‑note warning from the Department of Administrative Services (DAS) and asked whether the measure could trigger the federal Treasury Offset Program. One senator cited the DAS fiscal note language that the federal Treasury offset program "allows the federal government to reduce state's access to federal funds in response to us not paying," and asked whether the sponsor agreed the bill posed cash‑flow risk. The sponsor acknowledged the risk but said the bill is intended to create a mechanism for deliberative action if such a crisis arises.
The committee closed the public hearing and requested further review. No committee vote was recorded.
