Capitol Insight: Weekly Legislative Update 2/14/25
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s Legislative committees held public hearings, Governor Kelly Ayotte was putting the finishing touches on her version of the 2026-2027 biennial budget. Both bodies met on Thursday in joint convention to hear details of the proposed plan, which signaled the official start of the legislative process.
Governor’s Budget Proposal
Governor Ayotte presented her first budget to the Legislature on Thursday, touting New Hampshire’s growth over the last few years and emphasizing the need to continue working collaboratively to add to those successes. The Governor did not shy away from discussing the uncertain and potentially challenging revenue picture for the state as billions of dollars of “COVID money” from the federal government is exhausted while the state continues to see their strong revenues begin to slow down. This budget spends over $150 million less in General Funds than the previous one, encouraging department leaders to find more efficiencies within their agencies. The Governor stated that adjustments made in her proposal were made with a scalpel and not a shovel to ensure that needed services are maintained over the next two years. Some big-ticket items in her presentation included universal access to the Education Freedom Account Program as well as major investments in the state’s Group II retirement program for public safety employees. The Governor also spoke about safeguarding against cuts that would create a waitlist for New Hampshire’s developmentally disabled population. Governor Ayotte plugged additional investments in career and technical educational programs to fuel skilled trades and other high demand jobs, and the freezing of tuition at New Hampshire’s Community Colleges. One area that will continue to evolve will be recommendations from the Governor’s Commission on Government Efficiency, which will be coming in the next few months as members continue to meet with state agencies and other outside stakeholders.
C-PACER
Legislation that would fix issues with New Hampshire’s Commercial Property Assessed Clean Energy and Resiliency (C-PACER) law is being fast tracked to the Governor’s desk, where she is expected to sign the bill in short order. New Hampshire already has a C-PACE law in effect that has not been used due to administrative and lien concerns. SB 4 seeks to fix some of the banking issues that have arisen while still protecting municipalities’ opportunity to collect taxes. Additionally, the law will now be administered by the Business Finance Authority removing the burdens placed on municipalities to have to write their own documents, run their own programs and do their own billing. Being able to utilize this program now will allow builders to reduce the equity and down payment requirements of a first mortgage by removing the energy component. The bill has strong support from developers and economic development advocates who are enthusiastic about the benefits of the bill.
House Finance Non-Germane Amendment
The House Finance committee held a hearing on a non-germane amendment that would prohibit the Department of Health and Human Services (DHHS) from contracting with hospitals that are out of compliance with the statute governing Patients’ Bill of Rights. The legislation is a result of an incident where a New Hampshire hospital refused to perform a kidney transplant on a patient who rejected a COVID-19 booster. Although New Hampshire law currently safeguards patients’ ability to refuse such services, the amendment’s sponsor believes the language would provide further protections for patients. The House will continue work on the bill for potential addition to the budget trailer.
Week Ahead
While House Finance begins holding division work sessions on the proposed biennial budget, other committees will keep working ahead of school vacation week. The Senate will look to get all their legislation with a potential fiscal impact heard before a looming deadline the first week of March. The House will be the only body meeting in full Session before the week is finished.
About Rath, Young and Pignatelli
Capitol Insight is produced with the support of the Chamber’s government relations consultant: Rath, Young and Pignatelli (RYP). RYP merges traditional legal practice areas with legislative and public policy expertise. They have earned a reputation for achieving client success through skillful and creative advocacy in private party negotiations, before courts, regulatory agencies, and legislatures.
Their professionals are leaders in key sectors of the economy where business and government intersect including business and finance, energy, tax, health care, environmental, and insurance.
About The Greater Manchester Chamber
Incorporated in 1911, the Greater Manchester Chamber (GMC) is the largest business organization in New Hampshire, focusing its efforts primarily on Manchester and the surrounding communities of Auburn, Bedford, Candia, Derry, Goffstown, Hooksett, Litchfield, Londonderry, and Merrimack. It is the Chamber’s mission to be the voice of business, shaping economic success to enhance the quality of life in Greater Manchester. For more information visit www.manchester-chamber.org.
