Last Updated on June 14, 2025 by Bertrand Clarke

In a contentious move, New Hampshire’s state budget negotiations have spotlighted a controversial provision that restricts Diversity, Equity, and Inclusion (DEI) initiatives, raising alarms among mental health advocates and workforce experts. As the state grapples with a persistent shortage of mental health professionals, critics argue that the DEI prohibition could stifle efforts to diversify and expand the workforce, ultimately jeopardizing the delivery of critical care to Granite State residents.

The provision, quietly inserted into the state’s budget bill (House Bill 2) without prior public debate, prohibits state-funded entities, including community mental health centers (CMHCs), from engaging in DEI-related programs or policies. Proponents of the measure, primarily Republican lawmakers, claim it ensures hiring and promotions are based solely on merit, aligning with a broader national push against what they describe as ideological overreach. However, mental health leaders and advocates warn that the restriction sends a chilling message to prospective workers, particularly those from underrepresented groups, at a time when New Hampshire desperately needs to bolster its healthcare workforce.

A Workforce in Crisis

New Hampshire’s mental health system has been under strain for years, with financial instability and workforce shortages topping the list of challenges for the state’s 10 nonprofit CMHCs. According to the New Hampshire Community Behavioral Health Association (CBHA), one in 10 funded positions at these centers remains vacant, a figure that has persisted despite nearly a decade of workforce development efforts. A 2025 report from the New Hampshire Department of Health and Human Services (DHHS) estimates that the state needs an additional 1,200 mental health professionals by 2030 to meet growing demand, driven by rising rates of anxiety, depression, and substance use disorders.

The DEI restriction, critics argue, could exacerbate this crisis by deterring diverse candidates who value inclusive workplace cultures. “DEI initiatives are not just about checking boxes; they’re about creating environments where people feel they belong,” said Dr. Maria Lopez, a clinical psychologist and diversity consultant based in Manchester. “When you signal that those efforts aren’t welcome, you’re telling a whole segment of potential workers—especially younger professionals and those from marginalized communities—that New Hampshire isn’t the place for them.”

Data from the U.S. Bureau of Labor Statistics (BLS) supports this concern. In 2024, the healthcare sector nationwide saw a 15% increase in job applications from candidates who cited workplace diversity policies as a key factor in their decisions. In contrast, states with anti-DEI legislation, such as Florida and Texas, reported a 7% decline in healthcare job applications from minority candidates over the same period. For New Hampshire, which already struggles to compete with neighboring states like Massachusetts and Vermont for talent, the DEI prohibition could widen this gap.

The Budget Maneuver

The DEI provision’s inclusion in the budget bill has drawn sharp criticism for its lack of transparency. Unlike typical legislation, which undergoes committee hearings and public input, the measure was added as a last-minute amendment by the House Finance Committee in April 2025. Democratic lawmakers, including Rep. Mary Hakken-Phillips of Hanover, decried the move as a “procedural game” that bypassed democratic process. “This is a policy with far-reaching consequences, and it was slipped into a must-pass budget bill without a single public hearing,” Hakken-Phillips said in a recent interview. “It’s not how we should govern.”

The amendment defines DEI broadly, prohibiting programs that “classify individuals based on race, sex, ethnicity, or other group characteristics for the purpose of achieving demographic outcomes.” Supporters, like Rep. Jess Edwards (R-Auburn), argue that such policies distract from merit-based hiring and create unnecessary administrative burdens. “We want talent and skill to drive success, not arbitrary group quotas,” Edwards told the House Finance Committee in April.

However, opponents contend that the provision’s vague language could have unintended consequences, potentially affecting programs unrelated to hiring, such as cultural competency training for mental health providers. “Our clinicians need to understand the diverse backgrounds of their patients to deliver effective care,” said Roland Lamy, executive director of the CBHA. “This restriction could limit our ability to train staff on issues like racial trauma or gender identity, which are critical to serving our communities.”

Economic and Social Implications

New Hampshire’s demographic trends underscore the urgency of diversifying its mental health workforce. According to the U.S. Census Bureau, the state’s population is aging and becoming more diverse, with a 20% increase in residents identifying as non-white between 2010 and 2020. Yet, the mental health workforce remains predominantly white, with only 8% of licensed clinicians identifying as people of color, per a 2024 DHHS workforce survey. This mismatch can hinder patient trust and engagement, particularly for communities historically underserved by the healthcare system.

The economic stakes are equally high. A 2025 study by the New Hampshire Fiscal Policy Institute (NHFPI) projects that workforce shortages in healthcare could cost the state $1.2 billion in lost economic activity by 2030, as untreated mental health conditions lead to reduced productivity and increased healthcare costs. “Investing in a diverse and robust workforce isn’t just a moral imperative; it’s an economic one,” said NHFPI analyst Sarah Thompson. “Policies that make it harder to attract talent are shooting ourselves in the foot.”

The DEI restriction also risks alienating younger workers, who prioritize workplace inclusivity. A 2024 Gallup poll found that 63% of Gen Z job seekers consider a company’s DEI policies a top factor in their employment decisions. With New Hampshire’s median age of 43—among the highest in the nation—recruiting younger professionals is critical to sustaining the state’s economy. “If we want to grow, we need to show we’re a welcoming place to work,” said Thompson.

A National Context

New Hampshire’s DEI debate mirrors a national trend. In February 2025, the Trump administration issued a directive threatening to withhold federal funding from public schools and agencies with DEI programs, prompting legal challenges in states like New Hampshire. At the state level, Republican-led legislatures in over a dozen states have introduced or passed anti-DEI measures since 2023, often citing concerns about “wokeness” or reverse discrimination. However, a 2024 study by the American Psychological Association found no evidence that DEI initiatives disadvantage white or male workers, instead highlighting their role in improving workplace morale and retention.

In New Hampshire, the DEI prohibition has sparked a broader conversation about the state’s values. Disability rights advocates, for instance, worry that the measure’s broad language could undermine accommodations for workers with disabilities, despite assurances from Republicans that this isn’t the intent. Local leaders, like Margaret Byrnes of the New Hampshire Municipal Association, also warn of administrative burdens, as towns and cities must review contracts for DEI-related provisions, potentially leading to costly legal disputes.

The Path Forward

As budget negotiations move to a House-Senate conference committee, mental health advocates are urging lawmakers to remove the DEI provision. “We’re finally making progress on workforce recruitment, but this policy could set us back years,” said Lamy. Governor Kelly Ayotte, a Republican who has championed mental health reform, has signaled opposition to measures that reverse progress in this area, though her stance on the DEI restriction remains unclear.

For now, the fate of New Hampshire’s mental health workforce hangs in the balance. Advocates like Dr. Lopez remain hopeful but resolute. “We’re fighting for a system that serves everyone, and that starts with a workforce that reflects our state’s diversity,” she said. “This isn’t about politics—it’s about people’s lives.”