Capitol Insight: Weekly Legislative Update 4/18/25
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The House of Representatives took a much-deserved break this week from session but that did not stop thepolicy committees from continuing their work on bills. The Senate began their work on the budget, hearing presentations from state agencies, while taking a break for a brief Session on Thursday morning.
Hospital Association Lawsuit Against State
Earlier this week, the New Hampshire Hospital Association filed a third lawsuit against the state challenging the constitutionality of the Medicaid Enhancement Tax (MET). The MET has been used for over 30 years to bring matching federal funds into the state for hospitals to receive an allocation of those funds to offset the costs for uncompensated care each provides. After the agreement expired in 2024, the Governor and hospitals made repeated attempts to negotiate a new deal to no avail. Under one of the proposals, offered by the Governor, hospitals predict they will lose $70 million annually, putting their financial footing – and patient care – at risk. The Governor, on the other hand, believes the state’s formula would not only increase payments to acute care hospitals but also provide additional funding for critical access hospitals as well. Governor Ayotte accused the Hospital Association of playing political games and called on them to return to the bargaining table to find a solution.
Supreme Court Vacancy
Governor Kelly Ayotte will have her first opportunity to nominate a justice to the New Hampshire Supreme Court after Senior Associate Justice James Bassett announced he would retire at the end of August. The news comes one year earlier than he would be required to retire upon reaching the age of 70. Justice Bassett was nominated to serve on the Supreme Court in 2012 by former Governor John Lynch and is the longest serving Justice. Governor Ayotte will get an additional opportunity to shape the Supreme Court next year when Justice Anna Barbara Hantz Marconi also reaches the constitutionally mandated retirement age of 70.
Plenty of Room on the Table for Cannabis
Governor Ayotte has made no secret of her opposition to legalizing recreational cannabis or expanding New Hampshire’s therapeutic cannabis program. During the final two years of Governor Chris Sununu’s tenure, there were high hopes that a recreational legalization bill might make its way into law. However, the Senate closed that door this week by tabling three cannabis related bills, including one that would legalize recreational use and another that would have allowed medical patients to grow their own. Unlike previous sessions, this year’s legalization efforts lacked the same level of negotiation and compromise that emerged under a Governor more inclined to support a state-controlled model. Despite being the only New England state without a recreational market, the New Hampshire Senate has consistently resisted cannabis reform, forcing advocates to wait a bit longer at another attempt.
Week Ahead
The House and Senate will not hold Sessions next week, with leadership encouraging committees to use the time for hearings and additional work. Many House committees plan to take the following week off for school spring breaks and are cramming in meetings on early bills so they can stay ahead of schedule. Senate committees will continue to hold their remaining public hearings with Finance using several days for agency presentations ahead of their deliberations on the budget.
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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.
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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 bring together business and community to enhance economic success and quality of life in our region. For more information visit www.manchester-chamber.org.
