SB 295 Removed the NH EFA Income Cap: What Universal Eligibility Means for Parents

What SB 295 Changed

Before Senate Bill 295 passed in June 2025, New Hampshire's EFA program had an income ceiling. Only families earning at or below 350% of the Federal Poverty Level could apply. That excluded a large portion of New Hampshire households — particularly in the Seacoast and southern Hillsborough County, where median incomes run well above the threshold.

SB 295 removed the cap entirely. Every New Hampshire resident with a child eligible to enroll in a K-12 public school can now apply for an Education Freedom Account, regardless of household income.

The change converted a targeted scholarship program into a universal school choice framework. Enrollment surged from about 5,300 students in 2024-25 to over 10,000 in 2025-26.

What Didn't Change

Universal eligibility doesn't mean universal access. SB 295 simultaneously introduced an enrollment cap — 10,000 students for 2025-26, which has already grown to 12,500 for 2026-27 through the automatic 25% expansion trigger.

When applications exceed the cap, seats are allocated by priority tier, not first-come-first-served. Income still plays a role: families at or below 350% FPL qualify for Priority Tier 4, giving them placement ahead of non-priority applicants even though the income requirement for basic eligibility is gone.

The three core eligibility criteria remain unchanged:

1. The parent and student must be New Hampshire residents
2. The student must be eligible for K-12 public school enrollment (ages 5-20, no high school diploma yet)
3. The student cannot be enrolled full-time (more than 50%) in a public school or public charter school

Who the Expansion Actually Brought In

The newly eligible population falls into two broad groups.

Families already in private schools. Higher-income households whose children attend parochial or secular private schools can now direct state adequacy aid toward that tuition. For a family paying $15,000 per year at a private academy, the $4,351 base EFA award offsets roughly 30% of the bill. They're not changing how they educate their children — they're recovering a portion of the state funding that would otherwise follow their child to a public school.

Established homeschoolers who previously declined to apply. Some RSA 193-A home educators chose not to apply under the income-capped program because they didn't qualify or didn't want to navigate an income verification process. With the cap removed, the decision is purely about whether the funding is worth the trade-offs: ClassWallet restrictions, annual assessment submissions, and the legal status change from RSA 193-A to RSA 194-F.

The Political Context

SB 295 was controversial. Supporters frame it as returning tax dollars to families who opt out of public schools. Critics argue it drains public school budgets — over $51 million was distributed in 2025-26 — and that higher-income families who were already paying private school tuition are the primary beneficiaries of the expansion.

Both sides are correct about their respective facts. What matters for your family is the practical question: does the EFA's funding justify its administrative and legal requirements?

The New Hampshire EFA Parent Guide walks through that decision with a side-by-side comparison of what you gain and what you give up, the full application process, and the ClassWallet spending rules that apply once you're in.

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