New Hampshire House members are deliberating a proposal that would increase the state’s cigarette tax by $1.02 per pack. This initiative, identified as House Bill 1596 and sponsored by Representative Jerry Stringham from Lincoln, aims to address funding cuts in higher education and eliminate new Medicaid premiums. The first hearing on the bill occurred in the House Ways and Means Committee, garnering backing from public health advocates, while representatives from convenience stores voiced their opposition.

House Bill 1596, which currently lacks any Republican co-sponsors, faces strong resistance from the predominantly Republican House. Stringham pointed out that the existing cigarette tax, set at $1.78 per pack since 2008, has not been adjusted for inflation, arguing that even with the proposed increase, New Hampshire’s cigarette tax would remain the lowest in New England. A fiscal analysis estimates this tax hike could generate nearly $84 million annually, with $18 million earmarked for reversing cuts made to the University System of New Hampshire.

Due to budget limitations, Keene State College was compelled to eliminate 25 staff positions, reflecting a broader trend where New Hampshire struggles with low funding for higher education while maintaining some of the highest public university tuition rates across the United States. Additionally, the legislation would annul Medicaid premiums that are set to be implemented on July 1, which could reach as high as $270 monthly.

Stringham expressed concerns about the detrimental impacts of these new healthcare fees, suggesting they would drive some enrollees away from Medicaid due to affordability issues. He asserted that the proposed cigarette tax increase is consistent with inflation trends since the last adjustment, supported by various public health organizations aiming to decrease tobacco consumption.

Opposing views came from Anna Bettencourt of Londonderry, who raised concerns that the tax increment would undermine the competitive advantage stemming from New Hampshire’s low tobacco tax, which attracts customers from other states. As a director at Yatco Energy, she argued it was inequitable to impose higher costs on tobacco consumers just for revenue generation.

The American Cancer Society’s Michael Rollo emphasized the adverse effects of tobacco use on public health, highlighting that in 2025 alone, 10,300 residents would be diagnosed with cancer, a significant portion linked to smoking. He underscored the financial burden on the state, detailing annual smoking-related healthcare costs reaching $847 million, including nearly $150 million attributed to Medicaid expenses.

The committee’s eventual recommendation on House Bill 1596 remains uncertain, particularly with the opposition from the Republican majority in the House. In a statement, House Majority Leader Jason Osborne from Auburn reiterated the party’s intention to halt any tax increases, labeling such measures as detrimental to taxpayers and affirming a commitment to reject proposals from the Democratic side.