Budget 2026-2027

Gov. Ayotte’s budget proposal

On February 13, Gov. Kelly Ayotte presented her budget proposal to the state Legislature. She highlighted several funding priorities, including:

• A nearly 50% increase in funding for special education
• Allowing all students currently enrolled in public school to participate in the Education Freedom Account program, which lets students spend the per-pupil share of public school funding on private or home school expenses
• Increasing state funding for the Community College System (by about $10 million)
• Funding the Northern Border Alliance and other law enforcement initiatives, including increased funding for retirement benefits

Her budget also includes policy changes, such as:

• Reversing the bail reform law passed last year and limiting the conditions for bail
• Requiring state agencies and departments to process permits related to housing within 60 days
• Placing a moratorium on new landfill permits
• Allowing charitable gaming locations to bring in slot machines, which would in turn increase state revenue from gambling

With falling business tax revenue, pending lawsuits against the state, and the loss of federal funds related to COVID-19, Gov. Ayotte also proposed several ways to cut state costs, such as:

• Decreasing state funding for the University System (by about $16.5 million)
• Adding co-pays for some Medicaid recipients
• Dipping into the state Rainy Day Fund

Next steps

The state budget bills, HB 1 and HB 2, will go through the regular legislative process, including public hearings and votes in the House and Senate. Citizens Count will update this page as the budget moves forward.