State Budget Update: A Roller Coaster Ride with Wins and Challenges for Nonprofits
For New Hampshire’s nonprofit sector, this year’s $16 billion state budget brought both welcome investments and significant challenges. After navigating veto threats, standoffs, and intense negotiations, lawmakers reached an agreement—avoiding a continuing resolution. Below, we break down the budget’s impact on the nonprofit community, highlighting key victories, concerns, and notable changes to charitable gaming.
Key Wins for Nonprofits
The final budget includes several significant achievements for the nonprofit community:
Restored Medicaid Reimbursement Rates: A proposed 3% cut to Medicaid reimbursement rates was reversed, ensuring continued support for healthcare providers.
Fully Funded Developmental Disability Services: No waitlists for critical services, securing access for those in need.
Sustained Home Visiting and Family Resource Centers: Full funding ensures these vital programs continue to support families.
Strengthened Community Mental Health Programs: Funding bolsters mental health services across the state.
Improved Maternal Healthcare Access: The inclusion of SB246 expands care for new mothers.
Enhanced Childcare Access: SB243 increases access to quality, affordable childcare, a win for families and providers.
Areas of Concern
Despite these successes, the budget includes some disappointing provisions:
- Medicaid Work Requirements and Cost-Sharing: Funding for work requirements and cost-sharing measures (premiums and pharmacy co-pays) may reduce healthcare access without improving employment outcomes, as research suggests.
- Drastic Cuts to Arts and Culture: A 90% reduction in funding, coupled with a new fund to accept donations, forces arts nonprofits to compete with the state for limited philanthropic dollars.
New Restrictions on Diversity, Equity, and Inclusion Funding Raise Concerns
The budget also includes a sweeping prohibition on Diversity, Equity, and Inclusion initiatives across state government, public higher education institutions, K–12 schools, municipalities, and school districts. A provision in HB2 states:
“No state funds shall be allocated for Diversity, Equity, and Inclusion -related activities, including but not limited to implicit bias training, Diversity, Equity, and Inclusion assessments, critical race theory, or race-based hiring, promotion, or contracting preferences.”
Institutions that do not dismantle existing Diversity, Equity, and Inclusion efforts risk losing state funding.
This language has raised concern among advocates and nonprofit leaders who view Diversity, Equity, and Inclusion as foundational to inclusive policy, equitable access to services, and organizational effectiveness. The long-term impact of this ban on nonprofit partnerships, educational institutions, and community programs remains to be seen.
Charitable Gaming: Major Changes in HB2
The budget introduces significant updates to charitable gaming through HB2, effective July 1, 2025. Key provisions include:
Video Lottery Terminals (VLTs): Authorized at New Hampshire Charitable Gaming Facilities.
Elimination of Wager Limits: Applies to VLTs, Historical Horse Racing (HHR), and table games of chance.
31% Tax on VLT Proceeds: A new tax rate on VLT proceeds ensures a higher percentage of revenue for charities than they are currently receiving from historic horse racing.
Legalization of High-Stakes Tournaments: Expands opportunities for charitable gaming events.
These changes could reshape the landscape for nonprofits relying on gaming revenue. We’ll continue to monitor their impact.
Charitable Gaming Oversight Commission (HB328)
HB328, which has passed both chambers and awaits the Governor’s signature, establishes a 10-year Charitable Gaming Oversight Commission. Comprising seven voting members and nine non-voting members, the commission will review charitable gaming laws and recommend administrative and legislative changes as needed. We expect the bill to be signed into law and will closely track the commission’s work over the next decade.
What’s Next?
The state budget brings both opportunities and challenges for New Hampshire’s nonprofit sector. As the landscape continues to shift, the Center remains committed to keeping you informed and advocating for policies that strengthen our communities.
We encourage you to stay informed and engaged. Sign up for Advocacy News, reach out to share how your organization is affected, or learn how you can add your voice to upcoming advocacy efforts.