While there was drama and uncertainty up until the final moment, the 2025 legislative session ended with a compromise state budget that avoided a summer-long stalemate and the need continuing funding resolution. The 2025 session also resulted in a handful of key policy wins for the business community. Those wins are worth recounting, but first, let’s unpack the state budget.

The final state budget represents a compromise between competing priorities and outlooks, as the Governor and Senate Republicans favored more optimistic revenue projections while House Republicans adopted significantly lower estimates. In either case, budget writers went into the session knowing that significant cuts would have to be made, and many ideas were floated throughout the session about where those cuts would cause the least amount of damage to state services and the state’s economy. Major cuts were made across several state agencies, but many smaller state entities that work directly with businesses, such as the Housing Appeals Board and Human Rights Commission, were preserved, while larger departments will have to adapt to align with new state funding priorities. For example, after the increase in state fees and the Governor’s push for a more efficient permitting process, the Department of Environmental Services is expected to place greater emphasis on permitting and housing development than in the past. The budget preserves funding for tourism promotion, a key priority of the business community. However, the final funding levels for the University System of New Hampshire, while improved from the dramatic cuts proposed by the House earlier in the budget process, are cause for significant concern and the state’s talent and workforce pipeline.

Shifting from the budget to the housing policy front, the legislature began the year by passing HB 399, creating a commission to study zoning enabling act. That commission will begin meeting later this summer and will be considering the parameters around the ability of municipalities that opt-in to zoning to control land uses. As the session progressed, the legislature continued to pass pro-housing legislation including HB 577, expanding the accessory dwelling unit (ADU) law to allow detached ADUs, HB 631, allowing residential development in commercial zones, SB 284, making further changes to parking requirements, and a handful of other pieces of legislation. Additionally, the legislature retained SB 84, a bill aimed at reducing minimum lot size requirements. In the wake of similar legislation passing in states such as Texas and Montana, the legislature may choose to revisit SB 84 in 2026. While these actions represent meaningful progress, much work remains. With median home prices nearing $600,000 and the nation’s oldest workforce, New Hampshire must continue to pursue solutions that make housing more attainable—both to attract younger workers and to ensure long-term economic vitality.

Defensively, there were smaller policy fires everywhere of potential impact to the state’s business climate and economic competitiveness. Privacy advocates filed broad legislation that would have undermined the comprehensive data privacy law passed last year. Adding additional restrictions only a year after the 2024 privacy bill was not only unnecessary but would have significantly harmed the state’s business climate if passed. Efforts were also made to undermine potions of the Universal Commercial Code (U.C.C.). If successful, that would have setback the ability of New Hampshire businesses to obtain financial investment and compete in the broader U.S. market. Various bills were filed that would have impacted the labor laws in a way that would have added administrative burden and cost to businesses. Solid waste disposal regulations saw efforts increase those costs. Defeating and holding back these various anti-business measures underscores the critical role of the BIA and our allies in advancing key legislative priorities and ensuring the business community’s voice and interests are well represented at the State House.

Looking ahead, the 2026 session promises to bring renewed focus on housing policy and its intersection with workforce development, as well as new legislative attention on the state’s childcare sector. These areas are critical for the legislature to address if New Hampshire is to stay competitive for businesses. Without action, we risk falling behind other states that are aggressively adopting policy reforms in an effort to attract and retain workers. Without bold steps to lower housing costs and expand access to childcare, New Hampshire risks losing ground in this nationwide race to strengthen economic competitiveness and attract jobs, talent, and investment.

Michael Skelton is president and CEO of the Business & Industry Association. Visit BIAofNH.com.