Transcript Highlights:

• cost share percentage and square footage formulas in the school construction assistance program, or SCAP
• The bill before you makes two changes to the SCAP formula.
• The bill before you makes two changes to the SCAP formula.
• We had a conversation about how Medical Lake had been trying to apply for some SCAP funding to improve
• It excludes base inventory from that SCAP calculation and adds that 15% funding assistance bump.

Bills: HB2295

Keywords: Washington capital budget, supplemental capital budget, capital appropriations, state building construction account, taxable building construction account, climate commitment account, natural climate solutions, housing trust fund, affordable housing, supportive housing, homelessness, manufactured home communities, mobile home parks, school construction, school modernization, school seismic safety, healthy schools, school electrification, SCAP, behavioral health facilities

Summary: The Capital Committee heard public testimony on Substitute Senate Bill 5901, which would change the school construction assistance program formula by excluding school facilities on military bases from a district’s available instructional space inventory and increasing the state funding assistance percentage by 15% for projects located on a military base. Senator Leonard Christian said the bill was intended to help districts such as Medical Lake and Clover Park, where base schools can reduce eligibility for off-base school construction funding. OSPI, Clover Park, and Medical Lake testified in support, while one citizen raised broader concerns about school funding and federal lands. No vote was taken on the bill during this hearing. The committee also heard Engrossed Second Substitute Senate Bill 5061, which would require annual adjustments to prevailing wage rates in public works contracts, with exemptions for small works rosters and residential construction and a delayed effective date of July 1, 2028. Senator Steve Conway described it as a technical fix to align contract wages with regularly updated prevailing wage rates and said the bill would not affect the general fund, though it could increase project costs. Supporters from labor groups said the bill would prevent wage stagnation on long projects and improve workforce retention; contractors and AGC opposed it or sought a change-order safeguard if wage increases exceed 5%, citing unpredictability and potential cost impacts. L&I said its fiscal note reflected significant IT and administrative changes needed to implement the new system. The committee then moved to House Bill 2295, heard a staff briefing on a proposed substitute that would add funding for several new projects and make technical and language changes, with a net increase of $611,000 in bonds and $3 million from the waste tire removal account. In executive session, the committee adopted the proposed substitute and voted 18-0, with one excused, to report Substitute House Bill 2295 out of committee with a do-pass recommendation. The chair also announced plans for future executive sessions, including consideration of Substitute Senate Bill 5901, and noted the committee would wait for the Senate capital budget before final action on the capital budget bill.

Transcript Highlights:

• As folks on the committee know, we funded this to get a roadmap for looking at the SCAP program.
• So clearly there is a difference between how SCAP is keeping up with the funding of school facilities
• So clearly there is a difference between how SCAP is keeping up with the funding of school facilities
• So our second recommendation is for a new category within the SCAP for a minor modernization, and this
• Our next recommendation is accept all non-SCAP funding. Not a lot to say here.

Summary: The Capital Budget Committee heard presentations from the Department of Commerce, the Recreation and Conservation Office (RCO), and a consultant on the School Construction Assistance Program (SCAP) study. Commerce officials described their agency’s role in housing, energy, local government, broadband, and other capital programs, and reported on a $5 million pilot under Senate Bill 5200 that used trusted community messengers and technical assistance to help historically excluded organizations prepare for capital funding. They said 18 organizations received direct support and 79 smaller projects were also funded, but emphasized that statutory match rules, reimbursement-based payments, site-control requirements, insurance and audit costs, and extensive contracting rules remain major barriers. Commerce outlined efforts to expand outreach, digital modernization, internal contracting improvements, tribal MOUs, and innovation centers, and members asked about small business support, housing program placement, and outreach to Eastern Washington and communities of color. RCO described its grant programs for recreation, conservation, education, and salmon/orca recovery, and reviewed equity work done before and after a 2021-23 proviso. The agency had already created a small-communities carve-out in youth athletic facilities, piloted stipends for advisory committee members, and reduced match requirements where allowed. Under the proviso, RCO completed an equity review and a planning program that funded 54 projects across 34 counties, with many applicants being new or long-absent grantees. Staff said the review led to changes in scoring criteria, clearer application guidance, more objective data measures, expanded technical assistance, and targeted community engagement. Members asked about application burden, project sizes, outreach, and how the agency is broadening participation and representation on advisory committees. The final presentation summarized a planning study on SCAP, which examined rising construction costs, fragmented grant programs, local funding barriers, and uneven district capacity. The report recommended nine major changes, including stronger planning support, a new minor-modernization category, a mechanism to use unused funds more quickly, an education-specification prototype, a SCAP enhancement program for low-capacity districts, acceptance of non-SCAP funds, phased modernization, streamlined D-form and reimbursement processes, and revisions to the SCAP formula to better account for grade-band differences, enrollment projections, and regional cost factors. Additional recommendations included ongoing monitoring and evaluation, facilities-impact reviews, matching SCAP increases to construction-cost inflation, earlier locking of funding estimates, flexible program spaces, and updated statewide building-condition assessments. No votes were taken during the meeting.

Transcript Highlights:

• cost share percentage and square footage formulas in the School Construction Assistance Program, or SCAP
• The bill before you makes two changes to the SCAP formula.
• The bill before you makes two changes to the SCAP formula.
• for another event, we had a conversation about how Medical Lake had been trying to apply for some SCAP
• It excludes base inventory from that SCAP calculation and adds that 15% funding assistance bump.

Summary: The committee first heard Substitute Senate Bill 5901, which would change the School Construction Assistance Program formula for school facilities on military bases. Staff explained that the bill would exclude instructional space on military bases from a district’s available inventory and add an extra 15% to the state funding assistance percentage for projects located on a military base. Senator Leonard Christian said the bill was intended to help districts such as Clover Park and Medical Lake, where base facilities reduce eligibility for off-base school construction funding. Testimony was strongly supportive from OSPI, Clover Park, and Medical Lake, while one citizen raised broader concerns about school funding and common school trust lands. The hearing on the bill was then closed. The committee then heard Engrossed Second Substitute Senate Bill 5061, which would require annual adjustments to prevailing wage rates in most public works contracts, with exemptions for small works, residential construction, and certain other projects. Staff described the bill’s delayed effective date of July 1, 2028 and reviewed fiscal impacts, including significant L&I operating costs and an indeterminate but potentially substantial capital cost impact. Senator Steve Conway said the bill was a technical fix to align contract wages with regularly updated prevailing wage rates and noted that the bill had been amended to exempt small works and low-income housing projects. Proponents from labor and mechanical contractors said annual updates would better reflect negotiated wage schedules and help retain skilled workers, while opponents from contractor groups warned of unpredictability, higher project costs, and the need for a change-order safeguard if wage increases exceed 5%. L&I testified that the fiscal note reflected the need to rework its IT system to track annual adjustments. The hearing was then closed. The committee also received a briefing on a proposed substitute to House Bill 2295, which would add funding for several new projects and make technical and language changes. Staff said the substitute would increase spending by $611,000 in bonds and $3 million from the Waste Tire Removal Account. The committee then moved into executive session and, by a vote of 18-0 with one excused, reported proposed substitute House Bill 2295 out of committee with a do-pass recommendation. The chair also announced plans for future executive sessions, including one on Substitute Senate Bill 5901, and adjourned the meeting.

Transcript Highlights:

• , so it's unknown how many school districts would use this and if the projects themselves would be SCAP
• for the purposes of erecting new buildings, it must agree to delay receiving state assistance under SCAP
• , so it's unknown how many school districts would use this and if the projects themselves would be SCAP
• for the purposes of erecting new buildings, it must agree to delay receiving state assistance under SCAP
• It must agree to delay receiving state assistance under SCAP for two years.

Summary: The Ways and Means Committee met in executive session on March 2, 2026, and worked through two large groups of bills, hearing staff briefings, caucusing, and then voting each measure out to the Rules Committee. In the first group, the committee advanced bills on state accounts (HB 2675, with an amendment creating an adult day service facilities account), immigrant worker protections (2SHB 2105, after adopting a striker and Amendment 8 while rejecting amendments that would have changed enforcement and private rights of action), voting rights compliance (E3SHB 1710, with all proposed amendments rejected), AI content provenance and notices (E2SHB 1170, with Amendment 19 adopted to exempt state/local/tribal governments and certain video-game and technical uses), public official protections (2SHB 233, with a technical amendment adopted), WOTEC civil service coverage (HB 2249), JLARC work plan changes (HB 2120), LEOFF Plan 1 termination/restatement (E2SHB 2034, with several amendments adopted including creation of a pension surplus holding account and study directives, while proposals to redirect funds to the Climate Commitment Act or provide a lump-sum payment were rejected or withdrawn), supplemental retirement bargaining (HB 1069, with a striker adopted), port employee retirement exclusions (EHB 2179, with a striker adopted), local government revenue flexibility (ESHB 2442, with Amendment 72 adopted to remove a county public utility tax and other amendments rejected), wildfire mitigation funding (SHB 2089), and timberland REET changes (HB 1983). The committee also noted that it would not take action on some items in the packet, including SHB 1833. In the second group, the committee advanced bills on local housing tax remittance programs (ESHB 1717), renewable energy tax incentives and grants (E3SHB 1960, with a striking amendment adopted that adjusted rates, timing, and related provisions), nonprofit fundraising hall property tax relief (HB 2431), food bank sales tax relief (SB 6006), local tax increment financing (E2SHB 2451), temporary staffing services for nonprofit behavioral health entities (SB 6297), school and child care-related sales tax exemptions (SSB 6351, with a substitute adopted and the competing amendment made out of order), behavioral health work group extension and leadership council creation (2SHB 2429), Working Connections Child Care changes (SB 6353, with Amendment 43 adopted), language access guidelines for state agencies (SHB 2475), unpaid wage recovery (2SHB 2479), firearms background check fee authority (HB 2521, briefed but not acted on in the portion provided), public employee information sharing (HB 2091, briefed but not acted on in the portion provided), and Office of Independent Investigations jurisdiction changes (ESHB 2508, briefed but not acted on in the portion provided). Throughout the meeting, members and staff discussed fiscal notes, implementation costs, and whether amendments would increase or reduce state impacts, with several amendments aimed at narrowing scope, delaying implementation, or shifting enforcement and funding responsibilities.

Transcript Highlights:

• It's not clear how many school districts will use it and whether the project itself would be SCAP eligible
• I mean, well, it would be whatever the local share is for the project itself that was in SCAP, so I can't
• So if there's, I guess, under SCAP, if it was the local share and it was $30 million, if the school district's
• We put forward language in an amendment to ensure that any concerns related to the SCAP budget can be

Bills: HB2521, HB2249, HB1796

Keywords: firearms, background check, gun control, public safety, legislation, HB 2249, Washington Technology Solutions, WaTech, civil service, classified service, exempt employees, state employment, state personnel, network security, cybersecurity, information technology, IT contracting, data center, systems integration, network engineering

Summary: The committee first suspended the five-day notice rule and then heard House Bill 2521 on firearms background checks. Staff said the bill would remove the $18 cap on Washington State Patrol background-check fees and allow fees to be adjusted to actual program costs, which were estimated at roughly $33 to $35 per check. Supporters from the State Patrol said the current fee no longer covers costs and that without flexibility the program could face layoffs and longer delays; opponents argued the bill would create an unconstitutional tax or barrier to firearm ownership and disproportionately burden low-income residents. No vote was taken in the hearing. The committee then heard Substitute House Bill 2475 on language-accessible public programs, which would require the Office of Equity to develop uniform language-access guidelines, work on solutions to the interpreter and translator shortage, and require agency implementation reports. Testimony was generally supportive, emphasizing the need for consistent language access for limited-English-proficient residents and families. The committee also heard Second Substitute House Bill 2479 on wage recovery, which would create a wage recovery account and allow advance partial payments to low-wage workers facing immediate hardship while increasing some wage-violation penalties. Labor, business, and worker advocates largely supported the bill as a bipartisan response to wage theft, and staff noted the bill’s fiscal impacts would be funded through penalties rather than the general fund. Members next heard Engrossed Third Substitute House Bill 1960 on renewable energy tax treatment, which would replace existing property tax and excise tax provisions with a new renewable energy excise tax, local grant program, and tribal climate capacity grants. Counties, utilities, developers, and tribal representatives generally supported the concept but asked for amendments and clarification on rates, eligibility, and treatment of existing projects. The committee also heard Substitute Senate Bill 5932 on alternative jet fuel incentives, which would change the start date and duration of existing tax incentives; supporters said it would provide needed certainty for investment, while one refinery asked for a broader county threshold. Finally, the committee heard Engrossed Substitute House Bill 2238 on statewide food security, which would direct Agriculture to coordinate food-security planning and report on regulatory costs; food, farm, and anti-hunger groups supported the bill as a way to improve coordination and affordability. The hearing also included Engrossed Second Substitute House Bill 1903 on a statewide low-income energy assistance program, with supporters calling it a needed supplement to existing utility aid and opponents warning it did not address underlying rate increases, and Engrossed Second Substitute House Bill 2416 on waste-to-energy facilities under the Climate Commitment Act, which drew support from Spokane officials, labor, and environmental groups as a negotiated compromise to reduce ratepayer impacts while funding decarbonization planning. The final bill heard was Engrossed Second Substitute House Bill 2515 on large energy-use facilities, especially data centers, which would require utility tariffs, sustainability reporting, renewable-energy sourcing targets, labor standards, and a sales tax exemption for certain eastern Washington data centers; tribal witnesses supported consumer and salmon protections, while utility representatives said the bill would help prevent cost shifts and provide clearer rules for growth.

Transcript Highlights:

• It's not clear how many school districts will use it and whether the project itself would be SCAP eligible
• I mean, well, it would be whatever the local share is for the project itself that was in SCAP, so I can't
• So if there's, I guess under SCAP, if it was the local share and it was $30 million, if the school district's
• bill, and this year put forward language in an amendment to ensure that any concerns related to the SCAP

Summary: The committee first suspended the five-day notice rule and then heard House Bill 2521 on firearm background check fees. Staff explained that the bill would remove the $18 fee cap and allow Washington State Patrol to set fees based on actual program costs, which could be about $33 to $35 per check. Supporters said the change was needed to keep the background check system operating and avoid delays and layoffs; opponents argued it would burden lawful gun owners and amount to an unconstitutional tax or barrier to a constitutional right. No vote was taken in the hearing. Members then heard Substitute House Bill 2475 on language-accessible public programs, which would direct the Office of Equity to develop uniform language-access guidelines, address interpreter and translator shortages, and require agency implementation reporting. Testimony was strongly supportive, emphasizing the need for consistent access for limited-English-proficient residents and the benefits for schools, families, and state services. The committee also heard Second Substitute House Bill 2479 on wage recovery, which would create a wage recovery fund to provide partial advance payments to low-wage workers with meritorious unpaid wage claims and adjust wage penalty provisions. Employers, labor advocates, and legal services representatives largely supported the bill as a bipartisan, worker-protection measure funded by penalties rather than the general fund. The committee next took up Engrossed Third Substitute House Bill 1960 on renewable energy tax incentives, which would replace existing property tax and excise tax provisions with a new state and local renewable energy excise tax structure and related grant programs for local governments and tribes. Counties, utilities, developers, and tribal representatives generally supported the bill’s goal of stabilizing tax treatment for renewable projects, though several witnesses said they wanted amendments to address rates, timing, and late-stage project impacts. The committee also heard Substitute Senate Bill 5932 on alternative jet fuel incentives, which would change the timing and duration of existing tax preferences; supporters said it would provide certainty for emerging sustainable aviation fuel projects, while one refinery sought clarification and a broader county threshold. Later, the committee heard Engrossed Substitute House Bill 2238 on statewide food security, directing the Department of Agriculture to monitor food system performance and develop a statewide food security strategy. Agricultural groups, grocers, anti-hunger advocates, and farmers supported the bill as a coordination effort to improve food access, affordability, and supply chain resilience. The committee then heard Engrossed Second Substitute House Bill 1903, which would create a statewide low-income energy assistance program through the Department of Commerce; supporters said it would address growing unmet need and complement existing utility programs, while opponents said it did not address the root causes of rising energy costs. Finally, the committee heard Engrossed Second Substitute House Bill 2416 on waste-to-energy facilities under the Climate Commitment Act and Engrossed Second Substitute House Bill 2515 on large energy-use facilities (data centers), both of which drew mixed testimony centered on balancing emissions, ratepayer impacts, reliability, and environmental or tribal concerns. No final votes were taken in the hearing.

Transcript Highlights:

• so it is unknown how many school districts would use this and if the projects themselves would be SCAP
• for the purposes of erecting new buildings, it must agree to delay receiving state assistance under SCAP

Bills: HB2675, HB2249, HB2120, HB1069, HB1983, HB2431, SB6006, SB6297, SB6351, SB6353, HB2521, HB2091, HB2104, SB6355, HB2254, HB2385, SB5808, HB1796, HB1376, SB6260, HB2353

Keywords: accounts, finance, business regulation, transparency, audits, HB 2249, Washington Technology Solutions, WaTech, civil service, classified service, exempt employees, state employment, state personnel, network security, cybersecurity, information technology, IT contracting, data center, systems integration, network engineering

Summary: The Ways and Means Committee met in executive session on March 2, 2026, and took up two large groups of bills. In the first group, members heard briefings on measures dealing with state accounts, immigrant worker protections, Washington Voting Rights Act compliance, AI content provenance notices, an AI grant program, public official security, civil service coverage for WOTEC officers, JLARC work plans, LEOFF Plan 1 termination and restatement, supplemental retirement bargaining, PERS membership for certain port workers, local government tax flexibility, wildfire mitigation financing, timberland tax treatment, and related fiscal notes and amendments. In the second group, the committee heard bills on affordable housing tax remittance, alternative jet fuel incentives, renewable energy tax incentives and grants, nonprofit property tax exemptions, food bank and school sales tax exemptions, behavioral health staffing tax relief, children and youth behavioral health, Working Connections Child Care, language access guidelines, unpaid wage recovery, firearms background check fees, public employer information-sharing, and Office of Independent Investigations jurisdiction. The committee then voted on the bills and several amendments. It adopted amendments to HB 2675, HB 2105, HB 1710, HB 1170, HB 233, HB 2034, HB 1069, HB 2179, HB 2442, HB 1960, HB 6351, HB 6353, HB 2091, and HB 2508, while rejecting several other proposed amendments, including multiple changes to the immigrant worker, voting rights, and LEOFF bills. Members debated issues such as employer notice timing and private rights of action in the immigrant worker bill, the scope and enforcement of the voting rights preclearance bill, AI content regulation and exemptions for governments and video games, and the structure and fiscal effects of the LEOFF Plan 1 restatement, including a proposed transfer to the Climate Commitment Act and local government medical cost responsibilities. In the first group, the committee gave due pass recommendations to HB 2675, HB 2105, HB 1710, HB 1170, HB 233, HB 2249, HB 2120, HB 2034, HB 1069, HB 2179, HB 2442, HB 2089, and HB 1983, all subject to signatures. In the second group, it advanced HB 1717, HB 1960, HB 2431, SB 606, HB 2451, SB 6297, SB 6351, HB 2429, SB 6353, HB 2475, HB 2479, HB 2521, HB 2091, and HB 2508, also subject to signatures. The committee also received briefings on additional Group 3 bills, including low-income energy assistance, cap-and-invest fuel compliance, food security, aviation insurance for wildland fire response, waste-to-energy allowances, and other climate- and agriculture-related measures, but the transcript ends before final action on that group.

Transcript Highlights:

• In addition, those SCAP funding formula is based upon unhoused students, meaning that school districts

Summary: The committee heard a series of presentations on comprehensive plan updates, permitting reform, special purpose district coordination, and subdivision reform. Pierce County and the City of Redmond described their recent comprehensive plan updates, emphasizing housing production, transit-oriented development, middle housing, preservation of affordable housing, and the need for technical assistance and clearer state guidance. Both jurisdictions said the planning process took years and was complicated by overlapping state requirements, changing legislative mandates, and multiple review authorities. Redmond in particular said mid-course legislative changes forced supplemental environmental review and added significant cost and delay, and both local governments asked for more stability, clearer statutes, and better-aligned timelines. Presenters from the architecture, building official, and development sectors focused on permitting delays and proposed ways to speed housing delivery. Dave Boucher of AIA Washington argued for a provisional construction permit process for projects stamped by licensed professionals, along with mandatory deadlines and fewer stalled review cycles. Tim Woodard of WABO described existing tools such as pre-application meetings and phased approvals, noting they can improve certainty but also require staff time and careful coordination. Representatives from Master Builders and D.R. Horton said permit and subdivision delays add substantial cost to housing, citing studies showing months of delay and tens of thousands of dollars added per home, and urged administrative approvals, concurrent review, self-certification, and limits on repeated review cycles. The committee also reviewed a Commerce-led task force report on integrating special purpose districts into Growth Management Act planning. The task force recommended early invitation and notice to water, sewer, school, port, and other service providers during countywide planning policy and comprehensive plan updates, better coordination on grants and capital projects, updated water system coordination plans, and improved school siting and funding alignment in fast-growing areas. Speakers stressed that the recommendations were intended to be light-touch and focused on better communication rather than major statutory overhaul, while also noting that rural and slow-growing areas should not be burdened with the same requirements as rapidly growing jurisdictions. On subdivision reform, FutureWise and the City of Spokane discussed making more subdivision decisions administrative, preserving vesting, clarifying exemptions, and reducing unnecessary notice and appeal steps. Spokane described local reforms such as smaller minimum lot sizes, unit lot subdivisions, and reduced-process “minor engineering review” for simple plats, while raising concerns about new notice requirements and appeals to city councils for technical plat decisions. Across the hearing, members repeatedly returned to the theme that local governments, builders, and state agencies need clearer, more coordinated rules to reduce delay and uncertainty while still protecting safety and planning goals.

Transcript Highlights:

• This one you're looking at here is for SCAP, for erosion.

Summary: The committee first heard an update on the Joint Transportation Committee study of transportation impacts if the Lower Snake River dams were removed. WSDOT and Jacobs described the study’s phases, including current work on geology, infrastructure risk, and a total logistics cost model. They explained that the study is examining how freight now moved by barge—especially wheat, fertilizer, and wood—could shift to rail and roads, and they outlined several scenarios ranging from no-dam future conditions to new unit-train terminals, short-line rail options, and a combined “many solutions” scenario. Members asked about irrigation, impacts in Idaho and Oregon, port capacity, emissions, competition, EV trucks, and whether the model could estimate transportation effects if grain volumes decline. The presenters said the study assumes current production levels continue, does not model irrigation changes or broader farm-economics impacts, but does account for transloading costs and can estimate transportation impacts under different volume assumptions. WSU’s independent review team said the model has improved substantially but still needed refinement, especially in routing, road data, and spatial detail, and that stakeholder engagement had been strong though delayed by model development. No votes were taken. The committee then received a presentation on the alternative sidewalk funding study. Staff and consultants said the study is exploring ways local governments could sustainably fund sidewalk maintenance, repair, and new construction, using a statewide survey, interviews, national research, and case studies in eight jurisdictions. They noted sidewalks are important for pedestrian safety and connectivity, but there is no dedicated funding source in Washington, and existing grants and local revenue tools are highly competitive or limited. The consultants highlighted sidewalk fees or utility-style charges as the most promising option to study, while a parcel tax was largely set aside because of state property-tax uniformity concerns. Members asked whether the study would duplicate existing funding or add to current taxes, and how a sidewalk fee would be collected; the consultants said the goal is to expand local options, not mandate adoption, and that fees would likely be billed through utilities rather than property taxes. A preliminary draft report is due December 15, with a final report due in mid-June. Next, staff gave a brief update on the ocean-going vessels study, which is examining shore power and emissions rules for vessels at berth. The presenter explained that federal Clean Air Act rules and California waiver authority create legal limits on how far Washington can go if it wants to adopt similar standards, and that deviations from California’s approach can increase litigation risk. The report will summarize stakeholder outreach and will be presented in draft form at the next JTC meeting. Finally, county engineers from Chelan and Douglas counties began a presentation on county transportation challenges, with the association’s director emphasizing collaboration with state agencies and local partners on issues such as fish passage barriers and infrastructure needs. The county presentation was only beginning when the transcript ended, and no committee action or votes were recorded.

Transcript Highlights:

• committed to ensuring that every individual receives proper representation, as required by law. to SCAP

Bills: SB 1

Keywords: campground safety, youth camp regulations, flood safety, emergency evacuation, health and safety standards, 1185, senate, all

Transcript Highlights:

• So those three numbers that I provided to you, the SCAP, the debt service, and the retirees' health insurance

Keywords: 928, house, all

Summary: The committee heard a presentation from the University System of New Hampshire chancellor on the system’s budget, enrollment, finances, workforce role, and response to federal policy changes. The chancellor said the governor’s recommended budget would reduce university system funding by about $16.5 million over the biennium, or roughly 8.3%, and asked that state funding be held at the governor’s level. She described planned cost reductions already underway, including lower headcount, reduced benefits and retirement contributions, property sales, and lease reductions, and said the system expects to remove about $20 million from its cost structure in fiscal year 2026. A large portion of the discussion focused on enrollment and finances. The chancellor said fall 2024 enrollment was about 23,000, with New Hampshire enrollment increasing for the first time since 2013, and noted that the system remains a major workforce pipeline, with about 3,000 graduates entering the state workforce each year. She explained that net tuition has fallen over time because of declining enrollment and increased financial aid, while research grants and contracts have grown significantly. She also walked through endowment funding, explaining that payouts are based on a 12-quarter rolling average and are intentionally smoothed to reduce volatility; members asked for follow-up information on payout comparisons, administrative salaries, headcounts, and compensation per student. Members questioned the university about the relationship between state support, tuition, endowments, and research spending. The chancellor said the system has used state capital support to leverage major investments, including the UNH Life Sciences building, Plymouth’s Hyde Hall, and the Olson Advanced Manufacturing Center, and described partnerships with businesses such as Lonza and regional manufacturers. She also explained a long-running New Hampshire 529-related revenue stream that has built endowment support for scholarships, and said the system’s endowment now totals about $988 million. In response to questions about possible cuts, she said the system is considering academic program sharing, consolidation of specialties, online delivery, AI-assisted administrative efficiencies, and footprint reductions, but declined to name specific programs. The committee also discussed DEI-related issues and federal grants. The chancellor said the system is reviewing executive orders and a U.S. Department of Education Dear Colleague letter, and that general counsel is working through websites, programs, and more than 1,200 federal grants to ensure compliance. She said the system spends about $3 million on what it calls DEI-related offices and services, but emphasized that these services include disability support, veteran support, Title IX, ADA, and employment-law compliance, and that the system does not have race-based programs, separate housing, or separate graduation ceremonies. She reported that the system had received stop-work orders on four federal grants totaling about $700,000 and warned that reductions in federal direct or indirect costs could affect research, jobs, and innovation.