Capitol Insight: Weekly Legislative Update 4/4/25
All eyes were on the House Finance Committee this week as they put their finishing touches on their budget proposal. Senate Committees continued to chip away at House Bills that have crossed over from the other chamber and are anxiously awaiting their turn to take a crack at the budget.
House Budget, What’s in it?
The House Finance Committee wrapped up their budget work this week after nearly two months of examination and deliberation. The final product spends about $150 million less in General Fund dollars than the Governor’s proposal and has made a series of changes, some of which are generating additional discussion and controversy. The budget repeals the Council on the Arts, the Human Rights Commission, the Housing Appeals Board and the Office of the Child Advocate. These were described as essential cuts due to a lack of available funding because of lower revenue projections. Additionally, the Finance Committee cut $25 million in funding to the University System of New Hampshire, a reduction that opponents argue will force the colleges to increase tuition costs on a system that is already one of the most expensive in the country. One of the most controversial issues arose when Republicans on the committee inserted a prohibition on any government contracts that include diversity, equity and inclusion provisions, which was adopted on a party line vote. Members also included a series of back-of-the-budget cuts so essential services could be maintained while providing the Department of Health and Human Services with the flexibility to determine savings over the next biennium. One expenditure in the proposal, prioritized by Governor Ayotte, is for money allocated to the state’s Group II retirement account to provide additional pension funding for first responders. Ultimately, House Democrats could not support the Finance Committee’s final product and voted in opposition to the recommendation. Next week, the Committee will present the budget to the full House before it is officially considered on Thursday.
Auto Inspections on the Hot Seat
The Senate Commerce Committee heard testimony this week on a bill that would eliminate the annual safety inspection for passenger vehicles in New Hampshire. The legislation has been debated repeatedly over the years and always faces stiff opposition from law enforcement and auto dealers. The opponents contend that removing inspection mandates will compromise road safety by leaving drivers unaware of failing brakes or bald tires. Supporters, on the other hand, argue that New Hampshire drivers are exploited through the system and forced to pay for unnecessary repairs. With a larger than expected turnout, the committee ran out of time and recessed the hearing until next week when they are able to offer additional time to receive input on the legislation.
Bring the Energy
The House’s energy priorities were on full display this week. The Finance Committee voted to add three pieces of energy related legislation to the budget bill. First, they added language which would rebate money dedicated to the Renewable Energy Fund back to all electric ratepayers. Next, language to reform the Renewable Portfolio Standard (RPS), a program that requires the state’s electric utilities to obtain a percentage of their electricity from renewable sources was also included. Finally, the Committee included an update to the state’s energy policy to emphasize affordability and reliability over specific types of technology. All three pieces are attempts to save electric ratepayers money to try and reduce energy bills. While the first two were retained in the House to be included in the budget, the last one received a public hearing in the Senate this week, along with several other house bills. Based on what we’ve seen thus far, it is clear that the Senate and House have different energy priorities and ideas for how to save New Hampshire ratepayers money. As we near the end of session, both bodies will begin hashing out those differences in the coming months.
Week Ahead
Next week will see both House and Senate committees conducting hearings on bills that have crossed over to them from the other body. The Senate will skip a Thursday session day to let their committees work through the over 300 House bills sent to them. Meanwhile, all eyes will be on the House on Thursday as they officially reach their crossover deadline and hold a highly anticipated vote on their budget proposal.
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 bring together business and community to enhance economic success and quality of life in our region. For more information visit www.manchester-chamber.org.
