Wealthy Emerge as Big Winners in NH's 2025 Budget

Ayotte delivers on her promise of a brighter future...for the rich

New Hampshire has delivered on a Budget that Gives the Wealthy a Boost

The latest legislative session was a rollercoaster, with uncertainty lasting until the 11th hour over whether the state budget would pass. Governor Ayotte had threatened to veto the proposal unless it included key deal-breakers—among them, restoring benefits for first responders and reversing deep cuts to the Manchester school system.

In the House, the budget was opposed by a significant number of Republicans who claimed it “goes down a path of tyranny and continues to fund higher education, which is essentially a funding revolution,” according to Rep. Mike Belcher (R-Wakefield). Belcher warned the budget created “an inevitable path toward tyranny” through unchecked government expansion. He and his band of merry Freestaters were particularly concerned that the budget increased spending by roughly 7% over the previous biennium.

Shortly before the vote, my colleague Paul Berch (D-Westmoreland), expecting the budget to pass easily, told me, “All we need to do is set out the chairs on the Titanic and wait.” The surprise came when the first House vote failed by a single vote—182–183—with only one Democrat voting against it.

Budget Barely Squeaks Through

A recess was then called. Republicans regrouped to strategize. I wasn’t in the room, so I can’t confirm what was said—but you can bet Majority Leader Jason Osborne made it clear: vote yes, or face a primary.

Moments later, through a procedural move called Reconsideration, a second vote was held. The budget passed, 185–180.

Let’s break down what’s in the budget—both the bright spots and the major red flags.

On the positive side, the budget avoids a broad-based tax while increasing spending, which many Republicans tout as a win for New Hampshire values. It restores retirement benefits for first responders—police, firefighters, and corrections officers—a non-negotiable for the governor. It also reverses earlier cuts to Manchester public schools.

Other vital areas were also spared deep reductions. Medicaid provider rates, developmental disability services, and mental health programs retained their funding, an improvement over previous House proposals.
(Source: New Hampshire Bulletin, June 27, 2025)

But these gains are overshadowed by decisions that favor the wealthy at the expense of the working class, children, and vulnerable citizens.

The budget includes significant cuts to childcare and affordable housing programs—at a time when employers are struggling to hire due to lack of workforce housing and child care options.

The most controversial provision is the expansion of Education Freedom Accounts (aka school vouchers). Republicans champion this as a victory for "parental choice." Democrats—and many educators—see it differently: a financial gift to affluent families whose children already attend private schools.

This is not speculation. Estimates suggest that the voucher program will cost up to $30 million in 2025–2026 alone, with a potential 10-year cost nearing $100 million. Each voucher averages over $5,000, and vouchers for students with special needs can top $9,500. More than 2,000 applications poured in during the program’s first week.

These vouchers drain resources from public schools, which still must pay for buildings, teachers, and services even when students leave. Local property taxpayers will be left to fill the gap.

And while the budget increases overall spending, many of the most painful cuts came in the so-called “back-of-the-budget” items—finalized behind closed doors, with little public input. These cuts hit seniors, disabled residents, nursing home patients, and college students hardest. Tuition at state universities is likely to rise again, despite New Hampshire already ranking dead last in state support for public higher education.

Supporters of the budget claim it’s a fiscally responsible response to tight revenues. What they fail to mention is why revenues are tight in the first place: the repeal of the Interest & Dividends Tax and the ongoing reductions in corporate taxes.

It doesn’t take a finance wizard to see what’s happening here. These tax cuts have drained the treasury, and the cost is being passed to local taxpayers and vulnerable Granite Staters. Maybe this is why Gov. Sununu decided to leave the corner office before the Titanic hit the iceberg.

Meanwhile, in her victory lap, Gov. Ayotte proclaimed:

“We have protected our most vulnerable, created an even brighter future for our children, and stood up for those who have made our state the safest in the nation.”
(Source: Governor's Office Press Release)

Many of us beg to differ. This budget does not protect the vulnerable—it sacrifices them. It does not create a brighter future for all children, just for those who can already afford privilege. This budget favors the wealthy and well-connected while overlooking working families and those struggling to make ends meet.

Remember how your state senators and state reps voted on the budget when you go to the polls in 2026.