New Hampshire Education Freedom Accounts

New Hampshire created the EFA program in 2021 as part of broader school choice legislation. The program was designed to allow eligible families to direct a portion of state education funding toward alternative education options, including private schools, homeschooling, and specialized educational services.^[3]

In 2023, lawmakers expanded eligibility requirements, allowing most students in the state to apply regardless of income level.^[4]

EFA-approved families receive state education funds in their individual accounts, which they can use for approved educational expenses. These include private school tuition, homeschooling materials, tutoring, educational technology, instructional services, and certain extracurricular activities.^[5]

EFAs in New Hampshire are administered by an external scholarship organization responsible for processing applications and reporting on spending. Concerns have been raised about the availability of detailed spending data after reports published by the administrator, which showed how public funds were allocated, were removed from public view due to fears of harassment against education providers. Reporting from the Concord Monitor noted that the removed documents included detailed expenditure lists that showed how millions of dollars were spent on instructional and extracurricular categories and that program rules permit a broad range of uses for EFA funds, leading to public discussion about oversight and accountability.^[6]

Initially, New Hampshire’s EFA program had eligibility limited by an income cap, which restricted participation to families whose income did not exceed a set percentage of the federal poverty level. In 2025, the Legislature passed and the governor signed legislation that removed the income eligibility cap, making the program available to nearly all New Hampshire students regardless of household income, subject to an overall enrollment limit. ^[7][8]

The program’s funding comes from the state’s education formula, drawing on the Education Trust Fund and other state tax revenues that support public education. After the expansion of eligibility, the number of EFA participants nearly doubled, and state spending on EFAs increased accordingly. While opponents have raised concerns about cost and its implications for public education finance, reports noted that the EFA program’s growth has not directly decreased the state’s adequacy aid to local school districts, as per legislative oversight committee findings.^[9][10]

Since its expansion, EFA participation has increased significantly. Enrollment and total spending have exceeded early projections, with state officials estimating that EFA costs could surpass $51.6 million annually by the 2025–26 fiscal year.^[11]

According to a November 2025 report from the New Hampshire Department of Education, 4,745 students newly enrolled in the Education Freedom Account program for the 2025–2026 school year. Of those students, 343 (7.2%) had previously been enrolled in public schools, while 4,402 (92.8%) had already been enrolled in private schools or homeschooling prior to joining the program.^[12]

News coverage has reported that the expansion of New Hampshire’s EFA program has redirected state education funding toward private and alternative education options, while raising concerns among some lawmakers and education advocates about transparency, oversight, and long-term budget implications. Reporting by New Hampshire Public Radio noted that the legislative oversight committee responsible for reviewing the program had not met for an extended period, prompting calls from Democratic lawmakers for greater scrutiny of how EFA funds are used and how the program affects the state’s education budget.^[13]

Studies have also revealed that private and religious schools have received a significant portion of EFA tuition funds. A Concord Monitor review of EFA spending data found that religiously affiliated schools received a substantial share of EFA tuition payments, highlighting how public education dollars have been directed to private institutions under the program.^[14]

In discussions of education funding in New Hampshire’s legislature during the 2026 session, some critics linked broader changes to the state’s education funding system, including the expansion of Education Freedom Accounts, to debates over local property taxes and school spending. At a public hearing on a bill that would have required voters in cities, towns, and school districts to periodically approve limits on local property tax growth, opponents argued that “the state is expanding funding for Education Freedom Accounts and cutting revenues and is still failing to meet its constitutional obligation to adequately fund education.” This criticism was cited in the context of broader debates about local tax caps and school funding equity.^[15]

Additional reporting has examined how EFA funds are spent beyond tuition payments. An analysis of spending data reported by New Hampshire Public Radio found that Amazon was the single largest recipient of EFA funds outside of private school tuition, accounting for about $1.4 million in purchases, or roughly 35% of non-tuition spending.^[16] The reporting also found that some funds were used for extracurricular activities and lessons, including a total of nearly $9,000 on the Epic season pass, which grants access to some of the country’s premier ski resorts, including Stowe Mountain Resort, Wildcat Mountain Ski Area, and Mount Sunapee Resort.^[17]