The 2025 New Hampshire Legislative Overview

By: Jim Merrill

The 2025 legislative session in New Hampshire is set to be a transformative period marked by significant political shifts and policy initiatives. With the election of GOP former U.S. Senator Kelly Ayotte as Governor and the expansion of Republican majorities in both the House and Senate, the state is poised for a dynamic and busy legislative agenda. Key areas of focus will include developing, negotiating and agreeing on the State’s biennial budget, concerning revenue forecasts, addressing affordable housing, mental health system improvements, and educational reforms. Read more below.

Election Results and Political Shifts

November’s elections brought significant changes to New Hampshire, marked by the growth of Republican majorities.  The most significant change saw former GOP U.S. Senator Kelly Ayotte elected as Governor, succeeding popular four-term Governor Christopher Sununu.  Republicans also expanded their majorities in the House and Senate, with House Speaker Sherman Packard returning to his post while longtime GOP Senator Sharon Carson stepped up as Senate President, succeeding retiring State House legend Jeb Bradley.

Changes in the Executive Council

New Hampshire’s unique Executive Council – effectively a five-member board of directors for the State – also maintained a 4-1 GOP edge, with two significant changes.  First, Republican John Stephen, New Hampshire’s former Health and Human Services Commissioner and 2010 nominee for Governor, was elected to succeed the retiring Councilor Ted Gatsas. Second, Democrat and former Lebanon Mayor Karen Liot-Hill succeeded Councilor Cinde Warmington, who did not seek re-election.  The Executive Council votes on all state contracts of $10,000 or more and all gubernatorial nominations to boards and commissions, along with judicial and key administration posts.

Governor Ayotte’s Key Policy Points

In her recent inaugural remarks, Governor Ayotte laid out several key policy points that will inform her first two-year term in office.  Four particularly important areas – the budget, housing, mental health and education – are highlighted below.

Budget Challenges and Solutions

On the budget, reflecting increasing concerns about shortfalls, the Governor indicated that “Challenges are ahead of us in this coming budget.  The federal funding from the American Rescue Plan Act is expiring.  Business revenue is coming in lower than in past years.  And that means we’ve got to tighten the belt here in Concord…so we are going to have to make reductions and recalibrate from the higher spending of the past few years.  We are going to have to look to find better ways to do things with fewer dollars.”

As part of her commitment to meet this challenge, Governor Ayotte announced the creation of the “Commission on Government Efficiency” headed by former Governor Craig Benson and businessman Andy Crews to “make sure that government is operating more like the lean process in manufacturing, where waste is eliminated at each state in the process.” The Governor’s Executive Order lists the entire 15 person COGE panel.

Addressing Housing Issues

Governor Ayotte touched on another key challenge facing our state – housing – noting, “We need to get serious about housing production, streamline state agency approvals, and partner with our local communities…we’re going to pursue an all-of-the-above strategy to address it.” 

Part of that strategy is clearly regulatory and zoning reforms, where she noted, “As a state, we must model good behavior if we are going to ask the same of our local communities that are making these zoning decisions.  That starts with overhauling agency approvals, so they take no more than 60 days from start to finish.”

Improving the Mental Health System

Concerning the state’s mental health system, Governor Ayotte noted that it is “a key component of strengthening our communities and providing families the assistance they need to get help for their loved ones…I have heard firsthand about the urgent need to improve our mental health care system.  There are not enough providers, and we’re going to find ways to partner with our community colleges and university system to expand educational opportunities for mental health providers.”

Education Reforms and Initiatives

On education, Governor Ayotte noted she is a proud product of Nashua public schools, but that “they are not working for every child. I applaud the work the legislature has done to expand opportunities for families through education freedom accounts and look forward to strengthening and expanding this program to ensure more families have the freedom to put their children in the learning environment that is best for them.”

Governor Ayotte also announced that her administration will be taking steps to ban cell phones in schools, and outlined her strong support for “the importance of investments in the trades, career-ready education, and workforce training.”

With a new Governor tasked immediately with developing and presenting a balanced biennial budget next month, and a new Legislature preparing to navigate the budget process alongside the well over 1,000 filed bills covering virtually every imaginable topic, the coming months in Concord promise to be incredibly busy.  Countless issues, industries, and individuals will be impacted by the policy decisions debated and decided in the months ahead.

If our bi-partisan team can be helpful to you in monitoring or engaging in that process, please contact Jim Merrill at jim.merrill@bernsteinshur.com