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5/29/2026
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House Finance Committee approves 2027 state budget bill
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 STATE HOUSE – The House Finance Committee voted 11-2 today to approve a balanced $15.2 billion budget for the 2027 fiscal year that provides economic relief for Rhode Islanders, strengthens support for education and the state’s hospitals and health care providers and establishes new government reform efforts without any broad-based tax or fee increases.
The bill (2026-H 7127A), now goes to the full House of Representatives, which is expected to consider the budget on Friday, June 5.
“This budget is an effort to address the concerns and struggles of everyday Rhode Islanders, who need good schools, who need access to health care, who need to be able to pay their bills and who need to know that their government is honest and effective. This budget is the result of months of listening, prioritizing and identifying ways to fix what isn’t working. It provides relief today while being fiscally responsible and putting our state in a better position in the years to come,” said House Speaker Christopher R. Blazejewski (D-Dist. 2, Providence). “I’m very grateful to our Finance Committee and staff as well as the many leaders, advocates and members of the public who contributed to shaping this budget, to make it a real reflection of our state’s priorities.”
Said House Finance Committee Chairman Marvin L. Abney (D-Dist. 73, Newport, Middletown), “This document is a product of significant collaboration between the House, the Senate and the governor’s office, where we all came together to determine how to better the lives of every Rhode Islander. The budget invests in future success while also addressing the pressing concerns facing our state and its people. Times are tough for many and this budget addresses these issues while offering the support and investment that Rhode Islanders need and deserve.”
Health Care
Medicaid rates will be improved through the funding of a full Office of Health Insurance Commissioner (OHIC) rate review. Implementing the $115 million in increased support completely in one year will better position the state financially for future out years.
The committee recommended an additional $15 million over what the governor proposed for uncompensated care to the state’s hospitals. The budget contains the proposal to provide $20 million in support for Rhode Islanders to access affordable health insurance through Health Source RI.
The committee allocated $1.6 million for the Newport Hospital Birthing Center to support continued operations.
As part of a continuing effort to address the state primary care provider shortage, the committee approved $5 million for startup costs for the proposed new medical school of the University Rhode Island.
Education
The committee added more than $24 million to the governor’s proposal to fully fund direct state education aid and increase the student success rate to 43%.
The City of Central Falls will also regain immediate control of its school district.
For higher education, the proposal authorizes another ballot question asking voters to approve $275 million in borrowing for improvements at higher education facilities aimed at strengthening workforce preparedness, including a $165 million for new the Integrated Health Building at URI, $50 million for renovations to the Adams Library at Rhode Island College to accommodate a student success and career readiness center, and a $60 million career and technical Workforce Innovation Center at the Warwick campus of the Community College of Rhode Island.
Rhode Island College’s Hope Scholarship will also be extended an additional three years.
Relief for Rhode Islanders
The committee included a proposal to institute a high-earner’s tax of 1% a year over three years for tax filers earning more than $1 million a year. The marginal tax rate takes effect gradually over three years as measures passed last year as part of President Trump’s H.R. 1 affect the state more acutely. This will also allow the state to collect information on its impacts.
To support families, the committee included a new refundable child tax credit of $330 per child. This proposal will help families when combined with the current dependent exemption, which remains unchanged. Childcare eligibility will also be increased to 285% of the federal poverty level.
The committee also expanded eligibility for the Social Security income tax exemption by removing the age threshold, which is the same as the first year of the governor’s proposal.
Government reform
The budget includes Speaker Blazejewski’s proposal to create an independent Office of the Inspector General to investigate the state and quasi-public agencies, as well as municipal programs that use state funds, to prevent and detect fraud, waste, abuse and mismanagement.
The budget will require an efficiency and performance audit of the Rhode Island Department of Transportation.
Housing
The committee included a $120 million housing and community development bond question for November’s ballot, to support affordable housing construction and redevelopment and for homeownership programs.
Transportation and public transit
The proposal addresses the Rhode Island Public Transit Authority deficit by addressing the operating budget shortfall and providing additional funds for buses and improvements to bus shelters. The budget also prohibits the director of the Department of Transportation from serving as the chair of its board of directors, as is currently the case, to address potential conflict, since RIPTA and RIDOT are often competing for funding from the same sources.
Environment
The committee did not include the governor’s proposal to roll back energy efficiency programs or other measures that support the state’s efforts to reduce reliance on carbon-emitting fossil fuels. The state’s 2033 goal for fully utilizing renewable energy for electricity generation remains intact by expanding the state’s renewable energy standard to include nuclear and hydro power generation which will bring down rates for consumers.
The proposed green bond has become greener by expanding the bond total to $55 million and adding funds for open space and increasing support for climate resiliency measures.
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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