A House committee in New Hampshire is considering legislation that would require greater oversight of the Children’s Scholarship Fund – New Hampshire (CSF NH) by mandating that the organization be incorporated within the state. According to local media outlet indepthnh.org, House Bill 483, introduced by Rep. David Luneau, seeks to ensure transparency in the administration of two major scholarship programs funded by taxpayer dollars.
The need for oversight
Currently, CSF NH operates under the national Children’s Scholarship Fund, which is based in New York City. As a result, there is no separate IRS 990 filing for its New Hampshire operation. The 990 form provides details on executive salaries and the allocation of funds, including administrative expenses. Luneau and other supporters of the bill argue that requiring the organization to be incorporated in New Hampshire would allow lawmakers to track whether state-allocated funds are used solely for New Hampshire programs or diverted elsewhere.
Luneau pointed out that in 20 other states where the Children’s Scholarship Fund operates, there are separate affiliate organizations. New Hampshire is the only exception. He emphasized that incorporating the program in-state would bring it in line with practices in other states and provide better visibility into its finances.
Why the opposition to the bill
Opponents of the bill, including former Rep. Packy Campbell, claim that it is a veiled attempt to dismantle the Education Tax Credit (ETC) and Education Freedom Account (EFA) programs. Campbell argued that the bill violates the U.S. Constitution’s commerce clause, which prevents states from obstructing out-of-state businesses. He further contended that the existing programs already have sufficient transparency measures in place and that the legislation would lead to their elimination.
Campbell dismissed concerns about a lack of financial accountability, stating that regulations already dictate how funds are used and that parents do not have unrestricted control over the money. He characterized the bill as a “Trojan horse” aimed at terminating the scholarship programs.
What is the Children’s Scholarship Fund NH?
The Children’s Scholarship Fund—New Hampshire provides financial aid to low- and middle-income families, enabling students to attend schools of their choice. The program supports two primary initiatives:
Education Freedom Accounts (EFA): These allow families to direct a portion of their child’s state education funding—about $3,700 per student, plus additional aid where applicable—toward tuition, tutoring, educational supplies, and other approved educational expenses.
Education Tax Credit (ETC) Scholarships: Businesses and individuals who contribute to the scholarship fund receive an 85% tax credit from the state. Since the 2016-17 school year, CSF NH has distributed over $14.8 million in ETC scholarships.
Who is eligible for CSF NH?
Eligibility for CSF NH programs is based on residency, income, and student age:
- Residency: The student and family must be New Hampshire residents.
- Income: Household income must be at or below 350% of the federal poverty level.
- Age and Grade: Students must be between 5 and 20 years old, entering grades K-12.
As of September 2024, 5,321 New Hampshire students benefit from Education Freedom Accounts, while 827 students receive Education Tax Credit scholarships for the 2024-25 school year.
Next Steps for House Bill 483
The House Ways and Means Committee has not yet made a recommendation on HB 483. A similar bill was rejected in a previous legislative session. Supporters insist that the bill is aimed at improving oversight, not shutting down the programs. Whether the bill moves forward will depend on further deliberations by lawmakers and public feedback.
As debates continue, the future of CSF NH’s financial structure and transparency measures remains uncertain. Lawmakers will have to balance concerns about government oversight with the goal of maintaining educational opportunities for thousands of students across the state.
