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6/22/2026
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New Rhode Island budget offers tax relief for families
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By Christopher R. Blazejewski and Katherine S. Kazarian
As parents of young children, we’re both concerned and hopeful for the future of our state. We think about strong public schools, health care that’s actually within reach, and whether Rhode Island will be an affordable place to raise kids and age with dignity. These are real worries in our homes, just like they are in many homes. We also know how important it is to defend Rhode Island from devastating policies coming out of Washington, D.C. In putting together this year’s state budget, we worked to support and protect Rhode Island families, both now and in the future.
Washington isn’t helping. The new federal law known as HR-1 pulled the rug out from under Rhode Islanders who depend on Medicaid and federal support for health care. Rather than wait for things to get worse, we took action. We put $22 million into Health Source RI to help those who lost health coverage find affordable options. We fully implemented $115 million in Medicaid rate increases recommended by the state’s health insurance commissioner. We added $25 million for hospital uncompensated care and committed $1.6 million to keep the Newport Hospital Birthing Center open. We also worked with the Senate to fund $5 million toward the proposed URI medical school, aimed at fixing the primary care shortage.
In support of public education, we added more than $42 million to fully fund state education aid. We directed more school funding to kids in struggling communities and additional local support for school transportation and high-cost special needs students. We also funded programs assisting multilingual education and children with hearing loss. We put a $275 million bond question on the ballot for infrastructure investments at URI, RIC, and CCRI, and extended college access through the RI Promise and Hope scholarships.
With families squeezed right now, we worked to make Rhode Island more affordable. A new $330 refundable child tax credit will help families deal with rising costs, delivering $47 million in relief to over 70,000 households. We expanded childcare assistance and raised reimbursement rates for infant care providers, making it easier for parents to find and afford childcare. The budget prioritizes public transit and funds new buses and bus shelters. We also asked voters to approve a $120 million bond question to build more affordable housing. In response to federal cuts, we increased funding for the Community Food Bank to nearly $3 million and extended state programs assisting with food insecurity.
To support these critical responses to destructive Washington policies, the budget phases in a 1% marginal tax per year over three years on annual income above $1 million, with revenue timed to arrive when the negative impacts from HR-1 will be most acute. The budget avoids broad-based tax increases but asks those at the very top to chip in while everyone else absorbs the worst of what Washington sends our way.
With all the threats from the federal government, Rhode Islanders have every right to expect their tax dollars to be spent as efficiently and effectively as possible. To help restore trust in government and bring more accountability to state spending, the budget creates an independent Office of Inspector General, with authority to investigate fraud, waste, and abuse across state agencies, quasi-public entities, and municipal use of state funds. In response to recent high-profile failures, including the near-collapse of the Washington Bridge, we mandated an audit of the Department of Transportation’s maintenance programs. We all deserve to know what went wrong and what the state can do to prevent these failures from ever happening again.
Many people contributed to this year’s budget – Governor McKee, our House colleagues, particularly Finance Chairman Marvin Abney and Vice Chairman Scott Slater, our Senate partners, especially President Valarie Lawson, Majority Leader Frank Ciccone and Finance Chairman Lou DiPalma, and the advocates and constituents who made their voices heard.
Rhode Island families are working hard. They deserve a state government working just as hard for them. We hope this budget shows we’re listening, and that we’re with you.
Christopher R. Blazejewski, a Democrat from District 2 in Providence, is the Speaker of the House. Katherine S. Kazarian, a Democrat from District 63 in East Providence and Pawtucket, is the House Majority Leader.
For more information, contact:
Larry Berman, Communications Director for the Office of the Speaker
State House Room 322
Providence, RI 02903
(401) 447-2655
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