Children's Scholarship Fund Resists NH Audit

The state's Education Freedom Account program faces delays after the fund refused to share required student records with auditors.

Updated on Oct. 23, 2026 in Financial Aid

Children's Scholarship Fund Resists NH Audit

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Should private organizations managing public tax-funded programs be required to undergo state performance audits?

The Children's Scholarship Fund has delayed cooperation with an official legislative performance audit of New Hampshire's Education Freedom Account program. The Legislative Budget Assistant is now seeking a memorandum of understanding to access necessary data regarding the program's management.

Why it matters

The fund maintains that the records it holds are not state property, creating a significant roadblock for auditors evaluating the program's oversight. Lawmakers require this data to fully assess student residency and academic attainment following recent expansions to the program's eligibility.

The state expects to have spent nearly $190 million on the program by the end of the school year. Current enrollment stands at 13,151 students with an average grant of approximately $5,000 per pupil.

The players

Children's Scholarship Fund NH

This is a non-state entity that manages the distribution of funds for the New Hampshire Education Freedom Account program.

Legislative Budget Assistant

This non-partisan office provides financial and performance audit services to the New Hampshire General Court.

New Hampshire Department of Education

This is the state agency responsible for overseeing the public and private education systems within New Hampshire.

Joint Legislative Fiscal Committee

This body oversees state agency spending and reviews budgetary reports provided by legislative auditors.

The details

The Legislative Performance Audit Oversight Committee voted in May to broaden the audit to encompass student residency and academic performance metrics. While the Department of Education has agreed to terms, the fund's refusal to provide documentation has prompted a high-level meeting between the Department of Justice and other involved parties.

The oversight committee voted to expand the performance audit in May 2026.
LBA auditors reported the cooperation delay in October 2026.
A meeting between the involved parties is scheduled prior to Thanksgiving 2026.
Auditors hope to present findings to the Joint Legislative Fiscal Committee in Spring 2027.

Culture Shift

The audit impasse marks a critical point of friction for New Hampshire's Education Freedom Account program as it navigates rapid scale-up. This controversy reflects broader national debates regarding the transparency requirements for private entities managing public education funds.

The ongoing audit may clarify whether the current $55 million program reaches its intended student demographics effectively. Residents should monitor upcoming committee reports to see if audit results prompt future adjustments to student eligibility or grant amounts.

The takeaway

Transparency remains a central challenge for school voucher systems operating through third-party managers. Stakeholders should track the spring fiscal committee session to understand how audit delays might affect future program appropriations.