On July 1, 2025, the New Hampshire Supreme Court issued a landmark ruling mandating the state to nearly double its base education adequacy payment per student from $4,182 to at least $7,356, a significant development in the ongoing legal battle over school funding.

The court determined that the state is underfunding public education, emphasizing that it is the responsibility of the legislative and executive branches to address this constitutional deficiency.

While the ruling affirmed the need for increased funding, it did not order an immediate increase, citing the separation of powers doctrine and leaving implementation to the legislature.

This decision is viewed as a partial victory for the 18 plaintiff school districts, including Manchester and Nashua, which argued that the state's funding for K-12 education is inadequate.

Democratic leaders hailed the ruling as a significant victory for students and taxpayers, viewing it as a blueprint for addressing education funding inequities.

Reactions from legislators were mixed, with Democrats advocating for immediate reforms while Republican leaders expressed dissatisfaction, emphasizing their commitment to reform without imposing broad-based tax increases.

Public education advocates, including NEA-New Hampshire President Megan Tuttle, are urging the legislature to act swiftly to ensure equitable education for all children in the state.

Attorney Michael Tierney, representing the plaintiffs, expressed optimism that the state will act quickly to provide full funding following the ruling.

The ruling comes amid ongoing debates about education funding in New Hampshire, with further legal challenges anticipated as aspects of the case are remanded to the superior court level.

The majority opinion, written by Associate Justice James Bassett, highlighted the necessity for the state to include various educational costs in its funding calculations to ensure an adequate education.

The case originated in 2019 when the Contoocook Valley School District and 17 other districts filed a lawsuit claiming that the state's education funding violates the New Hampshire Constitution.

The ruling mandates that the state must allocate an additional $500 million annually to meet the new adequacy payment, raising questions about how to fund this increase, including potential tax reforms.