NH HB1557

Lowers the threshold for state special education aid from 3.5 times to 1.5 times the state average expenditure per pupil, meaning school districts would receive state reimbursement for special education costs exceeding a much lower dollar amount

Removes the provision allowing proration of special education appropriations when funding is insufficient, eliminating the current guarantee that districts receive at least 80% of their entitlement

Eliminates $250,000 in emergency assistance funds for school districts facing extraordinary special education costs and an additional $250,000 designated for small communities of 1,000 or fewer residents

Effective date of July 1, 2026, with fiscal impact estimated as an indeterminable increase in state expenditures from the General Fund and Education Trust Fund starting in FY 2027

Department of Education estimates all 32,000+ special education students could qualify for aid under the new threshold, compared to approximately 900 currently, requiring significant additional administrative staff to process claims