2026 Legislative Session Recap: Progress on Childcare and Housing
The 2026 legislative session concluded with meaningful victories for New Hampshire’s business community, particularly in two areas that have become central to the state’s long-term economic success: childcare and housing.
What began as a concerning legislative year ultimately ended on a positive note. Early in the session, lawmakers introduced a number of proposals that would have reversed recent progress on housing policy and imposed new costs and regulatory burdens on businesses across multiple sectors. Instead, the legislature rejected the most problematic proposals while advancing practical, market-based solutions to some of the state’s most pressing workforce challenges.
One of the clearest measures of success was the defeat of the Business and Industry Association’s (BIA) “Top 5 Job Killers,” a list of bills identified as posing significant risks to New Hampshire’s economic competitiveness. Collectively, these proposals would have increased energy costs for businesses, discouraged investment in cost-stabilizing energy technologies, restricted housing development, raised the tax burden on property owners, increased employer liability exposure, and imposed additional regulatory requirements on manufacturers and expanding businesses.
Fortunately, lawmakers recognized the potential consequences of these measures. Only one of the five bills advanced beyond the first half of the legislative process, and it ultimately failed to gain support in the Senate. Their defeat sends an important signal that New Hampshire remains committed to fostering a business climate that encourages investment, job creation, and economic growth.
Just as important as stopping harmful legislation was the passage of several bills designed to address the workforce challenges facing employers across the state. This year, the BIA requested three pieces of legislation aimed at expanding childcare availability and encouraging housing development.
Two of those bills, HB 1433 and HB 1195, focus on reducing barriers to opening and expanding childcare facilities. The third, HB 1103, creates new opportunities for municipalities to encourage the conversion of underutilized commercial and institutional buildings into housing through local tax incentives. All three bills successfully passed the legislature and are headed to Governor Kelly Ayotte’s desk.
These measures reflect an important policy principle: leveraging market forces to address public challenges rather than relying solely on government programs. In the case of childcare, HB 1433 and HB 1195 work together to encourage private-sector investment in new childcare capacity. Businesses that help fund the development or expansion of childcare facilities will be eligible for tax incentives, helping to offset costs while creating new options for working families. And, when childcare facilities are proposed near employment centers, municipalities will be required to allow them to be built. This common-sense reform to allow daycares near jobs recognizes that childcare works best when it is integrated into the places where people live and work.
The benefits are significant. Parents gain greater convenience and flexibility by having childcare options closer to their workplaces, reducing travel time and simplifying daily routines. Employers benefit as well, gaining a valuable tool for recruiting and retaining workers in an increasingly competitive labor market. At a time when workforce shortages continue to challenge businesses across New Hampshire, expanding access to childcare is both a family issue and an economic development strategy.
Housing was another area where lawmakers made meaningful progress. Last year’s landmark housing reforms represented an important first step toward addressing the state’s housing shortage. This year, legislators built upon that foundation by passing three additional measures (HB 1010, HB 1588, and SB 564) that further reduce barriers to housing development and clarify implementation issues that emerged following last year’s reforms.
Together, these bills will make it easier to build the types of homes that are increasingly absent from New Hampshire’s housing market: starter homes, downsizer homes, townhomes, apartments, and mixed-use developments. By allowing smaller homes on smaller lots and streamlining regulations affecting multifamily housing, the legislation helps expand housing choices for residents at every stage of life.
For businesses, workers, and families alike, the outcomes of the 2026 legislative session provide reasons for optimism. Employers across New Hampshire consistently identify housing availability and affordability as among the greatest barriers to attracting and retaining talent, with childcare shortages close behind. By rejecting legislation that would have increased costs and impeded economic growth, while advancing practical, market-driven reforms to expand housing and childcare options, lawmakers took meaningful steps toward addressing two of the state’s most pressing workforce challenges.
As attention turns to the 2027 legislative session, it is clear that the work is far from complete. New Hampshire still faces significant shortages of both housing and childcare capacity. But this year’s accomplishments build on the progress made in recent years and create a stronger foundation for continued action.
Natch Greyes serves as Vice President of Public Policy for the Business & Industry Association of New Hampshire. Visit BIAofNH.com.