For Education Freedom Accounts, capping income at 400% of poverty would exclude these moderate-income families
As legislators consider making more Granite State families eligible for the popular Education Freedom Account (EFA) program, there appears to be some disagreement about what types of families would be able to use the program depending on where the income limits are set.
Currently, only families whose income does not exceed 350% of the federal poverty level can access an Education Freedom Account. The House has already passed a bill to expand eligibility to 500% of the federal poverty level. In the Senate, there’s been some discussion about setting the line at 400%.
Considering whether to expand eligibility for the EFA program to families earning no more than 400% versus 500% of the federal poverty level is not a trivial matter.
To many New Hampshire families, the difference between 400% and 500% is the difference between finding the educational environment that meets their childrens’ needs or being stuck in a setting that doesn’t work for them.
Last week, we reported on Christine M.’s family of three. Christine and her husband work three jobs but can’t afford private school. They would qualify for an EFA with an income cap set at the 500% level, but not at the 400% threshold.
Many other Granite State families find themselves in similar situations because 500% of the federal poverty level is hardly “rich.”
The following chart shows what the eligible income caps would be under both the 400% and 500% expansions compared to the current eligibility standard of 350% of the federal poverty level.
| Household/Family Size | 350% of 2024 federal poverty level | 400% of 2024 federal poverty level | 500% of 2024 federal poverty level |
| 2 | $71,540 | $81,760 | $102,200 |
| 3 | $90,370 | $103,280 | $129,100 |
| 4 | $109,200 | $124,800 | $156,000 |
| 5 | $128,030 | $146,320 | $182,900 |
| 6 | $146,860 | $167,840 | $209,800 |
| 7 | $165,690 | $189,360 | $236,700 |
| 8 | $184,520 | $210,880 | $263,600 |
*For each additional person, add $18,830 at the 350% level, $21,520 at the 400% level, and $26,900 at the 500% level.
At these income thresholds, many families that few would consider affluent would be left out of the program.
The following families would not be eligible for an EFA at the 400% level but would be eligible at the 500% level (according to the most recent data available of annual mean incomes in New Hampshire from the U.S. Bureau of Labor Statistics):
- A single registered nurse with one school-age child earning $83,420 per year;
- A single dental hygienist with one school-age child earning $86,570 per year;
- A married waiter and secondary school teacher with one school-age child earning a combined $103,820 per year;
- A married childcare worker and school psychologist with one school-age child earning a combined $104,000 per year;
- A married real estate agent and housekeeping cleaner with two school-age children earning a combined $127,660 per year;
- A married mental health/substance abuse social worker and journalist with two school-age children earning a combined $125,720 per year;
- A married middle school teacher and accountant with three school-age children earning a combined $146,410 per year;
- A married paramedic and physical therapist with three school-age children earning a combined $149,850 per year.
Each of these far-from-rich families would be excluded from EFA eligibility under a new cap of 400%.
Under 500%, however, they would all qualify for the program.
This raises the question, then: What’s the real purpose of an income cap when families like these are left out?
