New Hampshire’s Executive Council has approved the first round of mandatory spending cuts to previously awarded Department of Health and Human Services (DHHS) contracts, part of a broader effort to reduce state spending by $51 million.
The initial reductions total about $4.2 million and affect several existing programs. Among them are a $1 million cut to mental health and life skills services for youth living in residential placements and a $100,000 reduction to a contract that operates cold weather shelters.
Another $2 million will be trimmed from a contract providing in-home support services to families considered at risk. A separate contract covering dental care at the Sununu Center will be reduced by $24,000.
State lawmakers required DHHS to identify the savings as part of the two-year budget passed in June, which included so-called “back of the budget” cuts across multiple agencies. Under the plan, health officials have until June 2027 to meet the full savings target.
Health Commissioner Lori Weaver told council members that officials tried to limit the impact on clients during this first round. She said the department compared last year’s actual service use with contract projections to identify areas where spending could be reduced without cutting off current recipients.
“We’ll still continue to serve families,” Weaver said, adding that the cuts would restrict future expansion rather than reduce services for those already enrolled. “No existing family would be getting any cuts.”
Despite those assurances, some councilors and advocates expressed concern that deeper reductions could eventually harm vulnerable residents. Executive Councilor Karen Liot Hill, the council’s only Democrat, said she supported the initial effort to minimize harm but warned that further cuts could have real consequences.
“At some point, people are going to be harmed by these budget cuts,” Hill said.
Advocacy groups and some Democrats criticized the reductions as misplaced. Lucas Meyer of the progressive group Our Economy Our Future argued the cuts would weaken essential services, including dental care for children and emergency shelter options in northern counties.
Gov. Kelly Ayotte defended the DHHS proposals, saying the administration is working to balance fiscal responsibility with protecting those most in need. “We are prioritizing our most vulnerable citizens,” Ayotte told council members.
