As we approach the middle of School Choice Week it is time to head to the geographically small yet mighty state of New Hampshire. Although the Granite State is 46th in square miles and 40th in population, its residents enjoy an outsized amount of overall freedom as evidenced by two decades of consistently being ranked either number 1 or number 2 on Cato’s annual Freedom in the 50 States Index. Last year, New Hampshire continued that legacy of freedom with creation of the Education Freedom Account Program.
New Hampshire’s new education savings account (ESA) program allows families to receive education funds that would otherwise be spent on public schools. These funds can then be used flexibly for education-related expenses such as tuition, books, and tutoring. The amount averages to around $4,600 per child, with eligibility limited to families earning less than or equal to 300% of the federal poverty line, or $83,250 for a family of four.
New Hampshire already had two forms of private school choice — tax credit scholarships and town tuitioning — but ESAs are a way to open up access for even more students than before, particularly in the midst of COVID-19. For example, the tax credit scholarship normally has around 30 students on the annual waitlist, but in 2020 it ran out of funds with increased demand and ended up with around 800 waitlisted students. And while the family income requirement is limiting, ESAs have the distinct benefit of shifting education money that was already going to be spent away from government schools and towards students.
Recent EdChoice polling found that 77% of New Hampshire school parents support ESAs, and the numbers so far attest to that support. For the 2021–2022 school year, 1,635 students were participating, far greater than a puzzling New Hampshire Department of Education projection that only 28 students would enroll. Policymakers should not have been so surprised; parents desire the best education for their children, and education works best when it can be matched to the needs of individual students.
As the 2022 legislative session kicks off, New Hampshire lawmakers have had different responses to the new ESA program. Some seek to increase access while others want to add restrictions. HB 1298 would expand access to families earning less than or equal to 500% of the federal poverty line ($138,750 for a family of four) and HB 607 would allow residents to vote locally to create larger, locally-funded ESAs. On the other side of the coin, HB 1283 would potentially treat ESAs as federally taxable income, and a proposal by State Sen. Jay Kahn (D‑District 10) would end ESAs completely.
New Hampshire parents have spoken: more choice is better for their families. Let’s hope the state continues the 2021 “Year of School Choice” into 2022 and beyond.