This article originally appeared on JBartlett.org.

After negotiations continued into a second day, conference committee members agreed last week to expand eligibility for the popular Education Freedom Account (EFA) program. The agreement on House Bill 1665 would raise the income limit from 350 percent of the federal poverty level (FPL) to 425 percent. That figure is closer to the Senate's position than the House's, and whether the deal can pass in the House is an open question.

At 425 percent of FPL, a family of four earning $132,600 would be eligible for an EFA, while the current 350 percent cap is $109,200. If lawmakers pass this expansion, an estimated 62 percent of New Hampshire students would be eligible for an EFA, according to EdChoice's calculations.

The House voted earlier this year to expand eligibility to 500 percent of FPL, while the Senate stuck with 400 percent. While 425 percent is a disappointment to lawmakers who had hoped to include as many families as possible, it would still be a significant increase over current eligibility levels.

The 425 percent, if approved by both chambers, would make a difference for families like that of Christine M., a mother we interviewed in March. Christine's son had been through three different learning environments in three years of searching for the right school. When the family finally found the best fit for him, they realized they couldn't afford the tuition and that the family of three – two parents working three jobs and earning $105,000 between them – didn't qualify for an EFA under the 350 percent cap.

If the 400 percent expansion had passed through the Senate, it would not have helped Christine's family. But at the 425 percent income limit, Christine's family would finally be eligible for an EFA.

Janette Howell of Amherst has a master's degree in education and says her five school-age children need more individualized services than the local district school can provide. In April, she urged lawmakers to expand eligibility, writing in the New Hampshire Journal that her family would not be eligible for EFAs at the current cap or the Senate's proposed 400 percent of FPL. When she learned of the 425 percent compromise this week, she said she teared up when she realized her family would be eligible.

“The increase to 425 percent, while small, is a life-changing increase for many families across the state, including mine,” Howell told us. “It provides students with an inspiring, formative pathway to education and relieves parents who choose a less traditional educational path for their children from a tremendous financial burden. When we received the news of this increase from the committee and reviewed the preliminary numbers showing we would qualify, my children cheered and I had tears in my eyes.”

Expanding to 425 percent would open the doors of EFA to many other middle-income families in New Hampshire.

For example, the following families would be eligible for EFAs equal to 425 percent of FPL (based on state average wages):

* A single nurse with one school-age child earns $83,420,
* A married waiter and secondary school teacher with a school-age child, who together earn $103,820,
* A married real estate agent and cleaner with two school-age children who together earn $127,660,
* A married social worker and journalist with two school-age children who earn a combined $125,720, and
* A married middle school teacher and accountant with three school-age children who earn a combined $146,410.

However, the quota of 425 percent is not as extensive as the quota of 500 percent. Although this would give more students opportunities, others who could benefit from school choice would continue to be excluded from the program.

The committee made further changes beyond the eligibility threshold. Members agreed to delete section five of the law, which included EFA participants in the calculation of average daily attendance (ADMA) and average daily attendance (ADMR) in public schools.

Under current law, ADMA and ADMR in public schools are calculated by counting each home-school student taking a public school academic course as an additional 0.15 students for each course taken for the purposes of allocating state subsidies. In other words, public schools receive an additional 15 percent subsidy from the state for each course a home-school student takes.

The Senate had amended HB 1665 to require that each student participating in the EFA program be included as an additional 0.15th student in the ADMA and ADMR calculations if that student took a course in a public school. This would have effectively meant that those public schools would have received an additional 15 percent state subsidy for each public school course taught to an EFA student (since EFA participants can also enroll in public school courses outside of their assigned district). The committee eliminated this provision.

To achieve a 425 percent expansion and the removal of Section 5 from HB 1665, House committee members voted to approve the Senate's expansion of phase-out grants for public district schools.

When a student in a district public school leaves that school (through moving, graduating, or transferring to another school), the school no longer receives per-student state education funds because it is no longer responsible for that child's education. However, this is only partially true for EFA students.

As part of the initial compromise to create the EFA program, the state continues to compensate each public district school for each student who enrolls in the EFA program. In other words, the state pays double for each EFA participant who transfers from an assigned public district school. The student receives one state education grant under an EFA, and the public district school receives a second.

These phased grants were set to expire on July 1, 2026. The Senate voted to extend them through July 1, 2029, so the district's public schools would receive three more years of funding for each student who leaves the EFA program. Some House Democrats have called this provision a “poison pill,” and it's unclear whether the additional eligibility will be enough to get the bill through the House.

After the agreement is finalized in the Mediation Committee, both the House and Senate must approve the new version of the bill before it can be sent to Governor Sununu for his signature. The original version of HB 1665 passed the House by just one vote.

If HB 1665 passes both houses and is signed by the governor, the state's largest school choice program, which has seen enrollment increase 201.7 percent in just three years, will be open to even more Granite State families seeking educational freedom – an outcome that was considered nearly impossible at the start of this legislative session given the partisan division of the House.

Howell, of Amherst, said her family's hopes for a successful 2025 school year depend on this week's vote.

“We are so grateful to all those who advocated, supported and compromised for this increase,” she said. “As we wait for the final vote, we hold our breath and hope for the coming school year.”