Democratic Answer to GOP Budget Proposes Reinstating DEI, Spending Increases, and a Tax Hike

Concord, NH- A floor amendment offered by House Democrats to New Hampshire’s HB2 budget bill proposes a significant expansion of state spending, a reversal of multiple GOP-led reforms, and the reinstatement of government-run diversity, equity, and inclusion (DEI) programs that had been previously eliminated.

The amendment would increase state expenditures by hundreds of millions of dollars across public education, health care, higher education, and government operations, while also modifying certain tax policies to offset the new costs.

Key spending provisions in the amendment include:

• K–12 Public Education: An additional $174 million directed to public schools despite decreasing enrollments. Simultaneously, the amendment reduces funding for the Education Freedom Account (EFA) program by $32 million. EFAs, expanded under Republican leadership, provide funds for families pursuing education options outside the public system.

• Higher Education: $50 million to the University System of New Hampshire, with additional funding allocated to community colleges, adult education, and robotics initiatives.

• Health Care: The amendment would eliminate Medicaid co-pays and premiums, increasing general fund obligations by $1.5 million. It also expands the Children’s Health Insurance Program (CHIP), offering free coverage to more families with moderate incomes, at an estimated cost of $14.3 million.

• Government Agencies and Commissions: The proposal restores several agencies previously sunsetted or defunded, including the Human Rights Commission ($3.2 million), Commission on Aging, Office of the Child Advocate, and the Governor’s Commission on Disability.

• Reproductive Health: $3.6 million is designated for family planning clinics.

  
  

DEI Policy Reinstatement

The amendment includes a full repeal of Republican-backed restrictions on state-funded diversity, equity, and inclusion programs. If adopted, the repeal would allow DEI-related trainings and positions to be reestablished within state government, reversing efforts made by the GOP to limit the scope of such programming in public institutions.

Tax and Revenue Changes:

• The tax on Video Lottery Terminals would rise to 45%, higher than the rate included in the Republican version of the budget.

• A $10 million transfer would be made from the Renewable Energy Fund.

• The Meals and Rooms Tax revenue-sharing formula would be partially restored.

Additional appropriations include $50 million for the Youth Detention Center (YDC) Settlement Fund and $9.3 million for tourism and welcome centers.

While proponents argue the amendment strengthens state services and restores equity initiatives, others view it as a rollback of cost-saving measures and a re-expansion of government bureaucracy.

The House will vote on HB1 and HB2 on Thursday.