NH HB742

Removes the prorated distribution requirement for catastrophic special education aid, meaning school districts would receive full funding rather than proportional payments when appropriated funds are insufficient

Requires all special education state aid payments to be drawn from the Education Trust Fund established under RSA 198:39

Authorizes the governor to draw warrants from the Education Trust Fund regardless of the fund's balance, with the state comptroller required to transfer general fund money to cover any resulting deficit

Eliminates the $250,000 emergency assistance designation for districts facing significant special education cost impacts and the additional $250,000 for small communities of 1,000 or fewer residents

Estimated to increase state expenditures by approximately $16.4 million or more per year beginning in FY 2026, based on the gap between $50.3 million in claims and $33.9 million appropriated in FY 2025