The NH House Education Policy and Administration Committee held a public hearing on HB 1774 (2026) relative to qualifying scholarship granting organizations and programs of low-earning outcomes, on Wednesday, January 28, 2026. This bill enables the state to participate in a new federal tax-credit scholarship program created by Congress in 2025.
The bill’s text is available here. https://gc.nh.gov/bill_status/pdf.aspx?id=24534&q=billVersion
A recording of the public hearing is here beginning at mark 1:20:00. https://www.youtube.com/live/Zav45PqHwww?si=0FB12IDSo7r62jVN
GSHE’s summary addresses only the K-12 scholarship provisions of the bill, which are the portions most relevant to independent home education families. HB 1774 does not amend New Hampshire’s home education law (RSA 193-A). Families who do not participate in a scholarship program would see no change to independent home education.
The Federal Program Tied to HB 1774
The federal program was created by the One Big Beautiful Bill Act (H.R. 1, Public Law 119-21), which was passed by Congress and signed into law on July 4, 2025. The federal law establishes a tax-credit scholarship program under section 25F of the Internal Revenue Code.
Under the federal program, individuals may receive a dollar-for-dollar federal income tax credit for donations made to approved scholarship-granting organizations (SGOs). Those organizations may then award scholarships to families for K-12 educational expenses. The federal program takes effect on January 1, 2027.
HB 1774 is the New Hampshire bill that allows the state to participate in this federal program.
Impact of HB 1774
HB 1774 directs the New Hampshire Department of Revenue Administration to participate in the federal tax-credit program and directs the Department of Education to create and publish a list of approved scholarship-granting organizations and submit that list to the US Treasury. The bill also incorporates federal definitions into state law so the program can operate in New Hampshire.
HB 1774 does not create scholarships, distribute funds, or establish eligibility rules. All scholarships would be administered by nonprofit organizations, not by the state.
If enacted, HB 1774 would take effect on January 1, 2027, the same date the federal tax-credit program becomes operational.
Explanation of a Scholarship-Granting Organization
A scholarship-granting organization (often called an “SGO”) is a nonprofit organization that collects donated funds and awards education scholarships according to program rules. The federal program operates only through SGOs. Funds are not provided directly by the federal government or the state.
In New Hampshire, participation in the federal program would be managed by SGOs approved by the Department of Education and included on its list. Families would interact with an SGO, not with the state or the IRS.
At present, the Children’s Scholarship Fund is New Hampshire’s only operating SGO. They manage the Education Tax Credit (ETC) Scholarship under RSA 77-G that is available for income-qualifying home education families, as well as the Education Freedom Account (EFA) that is a separate educational pathway in NH compulsory education attendance, found in RSA 194-F.
Eligible Uses and Tracking
HB 1774 does not require any family to participate. Independent home education under RSA 193-A remains unchanged for families who do not seek scholarship funds.
For families who choose to participate, the experience would be different from independent home education as it exists today. Participation would require enrolling in an SGO-run scholarship program and agreeing to that program’s rules.
HB 1774 constrains eligible educational uses to those that fit the federal definition incorporated into the bill. Specifically, HB 1774 defines “allowable uses of scholarship funds” by reference to 26 U.S.C. section 530(b)(3)(A), a federal tax statute that governs qualified K–12 education expenses.
This federal definition is narrower than New Hampshire’s ETC and EFA programs and focuses on academic instruction and school-related costs.
Under the federal definition, expenses that typically qualify include tuition and required fees, curriculum and instructional materials, textbooks and workbooks, academic tutoring, special needs services related to instruction, and computer technology and internet access used primarily for education. Examples include textbooks (including digital textbooks), instructional Kindle books used for coursework, math or writing tutoring, online academic courses, and instructional software.
Expenses that are currently approved under New Hampshire’s programs but do not fit the federal definition include recreational or enrichment activities and related equipment. Examples include driver’s education, recreational sports, hobby-based instruction, enrichment-only classes, and non-academic items.
HB 1774 does not expand or modify the federal definition. Any scholarship-granting organization administering a federal tax-credit scholarship program in New Hampshire would be required to limit approved uses to those that fit the federal categories. Families should not assume that expenses approved under New Hampshire’s programs would also be approved under a federal scholarship program.
Participation would also involve documentation and tracking. Families would be required to document how scholarship funds are used, such as submitting receipts, using third-party services like Class Wallet, or attestations to the SGO. The SGO would review and track scholarship spending for compliance with program rules and distribution of funds.
Scholarship Details TBD
The federal law does not limit the program to private school students or require private school enrollment. Eligibility is tied to participation in an SGO-run scholarship program and the use of funds for qualifying K–12 educational expenses.
HB 1774 does not create a separate scholarship program for independent home education families. Whether independent home education families may participate, and under what conditions, would depend on how scholarship-granting organizations structure their programs, which is not defined in the bill.
Neither the federal law nor HB 1774 provides detail about how a federal tax-credit scholarship program would operate in practice in New Hampshire. The statutes do not specify eligible students, scholarship amounts, application timelines, reporting requirements, documentation standards, or how expenses would be reviewed or approved. They also do not establish deadlines, funding minimums or caps, or uniform program rules.
Instead, these details would be determined later through federal guidance, state rulemaking, and the policies of any scholarship-granting organization that chooses to operate a program. As written, HB 1774 authorizes participation in a federal framework but leaves many practical questions unanswered.
Families should be aware that significant aspects of any future scholarship program would be defined after enactment and outside of the statutory text.
Next Steps
The NH House Education Policy and Administration Committee may hold an executive session on HB 1774 at any time when they will discuss and vote on the bill, a recommendation to the entire House of Representatives.
GSHE will continue to monitor HB 1774 and share updates as appropriate.
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About GSHE
Granite State Home Educators (GSHE) is a 501(c)(4), all-volunteer, statewide grassroots organization dedicated to supporting and empowering families who choose independent home education under RSA 193-A. We provide guidance, resources, community connections, and legislative monitoring focused exclusively on independent home education.
