New Hampshire HB 1586: allowing the commissioner of the department of education to withhold funds from public schools if such schools are not providing special education services in compliance with state law.
Status: Inexpedient to Legislate: MA VV 02/05/2026 HJ 3 P. 8 (as of 2026-02-05)
State: New Hampshire · Session: 2026 · Bill: HB 1586
Sponsors: Kristin Noble, Lisa Freeman, Victoria Sullivan
Bill Text
HB 1586-FN - AS INTRODUCED 2026 SESSION 26-3242 07/09 HOUSE BILL 1586-FN AN ACT allowing the commissioner of the department of education to withhold funds from public schools if such schools are not providing special education services in compliance with state law. SPONSORS: Rep. Noble, Hills. 2; Rep. Freeman, Belk. 8; Sen. Sullivan, Dist 18 COMMITTEE: Education Funding ----------------------------------------------------------------- ANALYSIS This bill allows the commissioner of the department of education to withhold funds from public schools if such schools are not providing special education services in compliance with state law. - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Explanation: Matter added to current law appears in bold italics. Matter removed from current law appears [in brackets and struckthrough.] Matter which is either (a) all new or (b) repealed and reenacted appears in regular type. 26-3242 07/09 STATE OF NEW HAMPSHIRE In the Year of Our Lord Two Thousand Twenty-Six AN ACT allowing the commissioner of the department of education to withhold funds from public schools if such schools are not providing special education services in compliance with state law. Be it Enacted by the Senate and House of Representatives in General Court convened: 1 Education; Chartered Public Schools; Establishment; Application; Amendment; Procedure. Amend RSA 194-B:3, VI(c) to read as follows: (c) Nothing in this section shall be construed to limit a school district's obligation to provide special education services to all qualifying students residing in the district consistent with the requirements of state and federal law. Should a public school fail to abide by this section, the commissioner of the department of education shall halt all sources of public funding to that school until such time as the school comes into compliance with this section. The commissioner shall notify the state treasurer if a public school is not in compliance with this section, at which time the treasurer shall halt all forms of public funding to the school until the commissioner has certified the school come into compliance with this section. 2 New Subparagraph; Education; Chartered Public Schools; Authority and Duties of Board of Trustees. Amend RSA 194-B:5, VIII by inserting after subparagraph (c) the following new subparagraph: (d) Should a public school fail to abide by this section, the commissioner of the department of education and the state treasurer shall halt all sources of public funding to that school in the same manner described in RSA 194-B:3, VI(c). 3 Effective Date. This act shall take effect 60 days after its passage. LBA 26-3242 12/2/25 HB 1586-FN- FISCAL NOTE AS INTRODUCED AN ACT allowing the commissioner of the department of education to withhold funds from public schools if such schools are not providing special education services in compliance with state law. FISCAL IMPACT: This bill does not provide funding, nor does it authorize new positions. Estimated State Impact FY 2026 FY 2027 FY 2028 FY 2029 Revenue $0 $0 $0 $0 Revenue Fund(s) None Expenditures* $0 $80,000 $84,000 $87,000 Funding Source(s) General Fund Appropriations* $0 $0 $0 $0 Funding Source(s) None *Expenditure = Cost of bill *Appropriation = Authorized funding to cover cost of bill Estimated Political Subdivision Impact FY 2026 FY 2027 FY 2028 FY 2029 Local Revenue $0 $0 $0 $0 Local Expenditures $0 Indeterminable METHODOLOGY: This bill requires the Department of Education to withhold funds from public schools if such schools are not providing special education services for students in charter schools in compliance with state law. The Department has provided the following for interpreting this bill for fiscal impact purposes: • This language states that when school districts do not provide services to students with disabilities receiving special education the district will have all state and federal funds halted until they are complying with this section. Currently school districts can only provide services in the student’s Individualized Education Program (IEP). It is unclear how it would be determined that a school district is not providing services per the student’s IEP. • The Department understands this bill to amend language around the implementation of a Memorandum of Understanding (MOU) between school districts and charter schools. The proposed legislation would again withhold a school district’s state and federal funding if they do not complete an MOU with the charter school. It is unclear if the school district would also have funds withheld if the charter school did not cooperate with the school district to develop the MOU or if the charter school would then have their funds withheld. The Bureau of Special Education
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