New Hampshire continues to lead the nation in overall child well-being, securing the top position for the third consecutive year.

The annual Kids Count Data Book, published by the Annie E. Casey Foundation, ranks states based on key measures in four categories: economic well-being, education, health, and family and community.

Nicole Heller, senior policy analyst at the New Hampshire Fiscal Policy Institute, said the state’s top ranking is not surprising given its relative wealth and higher income levels compared to other states, but she cautioned that many children are still being left behind.

“It stands out to me that even if we’re number one, there are still a lot of children in the state who are experiencing hardship along with their families,” said Heller. “It suggests that even though we’re number one, there’s still hardship in the state that we may want to keep in mind.”

The report, based on 2023 data, estimates that 20,000 children in New Hampshire are living in poverty.

While that figure represents just 8% of the child population, Heller said that in a small state of roughly 1.4 million residents, it remains a significant concern.

Vermont is ranked second, followed by Massachusetts, in overall child well-being.

Compared to its performance in economic well-being, health, and family and community, New Hampshire ranked a lower in education.

According to the report, 64% of fourth graders were not proficient in reading, and 68% of eighth graders were not proficient in math.

Heller said the numbers reflect disparities across the state, depending on which school district children attend, how funding is distributed, and the impact of local property taxes on educational outcomes.

“Investing in children, particularly early on in their lives, can have higher returns on investment because early investment can help prevent some non-optimal outcomes in later childhood and adulthood,” Heller said. “It can also help with pulling families and children out of poverty and have beneficial outcomes.”