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6/9/2026
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General Assembly approves 2027 state budget bill
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 STATE HOUSE – With a 32-6 vote in the Senate today, the General Assembly has approved 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 healthcare providers and establishes new government reform efforts without any broad-based tax or fee increases.
The bill (2026-H 7127Aaa), which passed the House on a 65-10 vote Friday, now goes to the governor.
“This budget is an effort to address the concerns and struggles of everyday Rhode Islanders who need good schools, who need access to healthcare, 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 members 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 Senate President Valarie J. Lawson (D-Dist. 14, East Providence), “This budget is a collaborative effort that includes many of the initiatives that the Senate has worked hard on this year, particularly in the area of helping Rhode Islanders access the healthcare they need. From funding the 988 crisis prevention line, to extending the Eat Well Be Well program that enables SNAP recipients to eat healthy food to enabling the funding of the Workforce Training Center at CCRI, this budget reflects our strong commitment to bettering the lives of Rhode Islanders. I’m thankful to our Senate Finance Committee and our colleagues in the House for their hard work and cooperative effort in crafting a budget that will move our state forward.”
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.”
Said Senate Finance Committee Chairman Louis P. DiPalma (D-Dist. 12, Middletown, Little Compton, Newport, Tiverton), “This budget addresses significant challenges facing the state and its people while also offering the immediate support and services that Rhode Islanders need during these fiscally uncertain times. In partnership with the House and the governor’s office, the Senate is pleased to see meaningful investments in healthcare and education, which will protect the health of our state’s residents while investing in our children and Rhode Island’s future.”
Healthcare
Medicaid rates will be increased to fully implement the recommendations in the Office of Health Insurance Commissioner’s (OHIC) September 2025 rate review in 2027. The governor had proposed spreading the increases over the next two years and capping rates at the Medicare rate, but implementing the $115 million in increased support completely in one year will better position the state financially for future years.
Legislators have added $15 million over what the governor proposed for uncompensated care to the state’s hospitals.
The budget includes $22 million to help Rhode Islanders who either lost federal subsidies or became ineligible for Medicaid as a result of President Trump’s H.R.1 to access affordable health insurance through Health Source RI.
The budget allocates $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 budget includes $5 million in 2027 for startup costs for the proposed new medical school of the University Rhode Island.
Education
Lawmakers have added more than $24 million to the governor’s proposal to fully fund direct state education aid and increase the student success factor, which provides greater support for students from families with low incomes, to 43%.
The city of Central Falls will also regain immediate control of its school district after more than three decades of state control.
The budget includes $750,000 for a new Support and Access to Bilingual Education (SABE) fund within the Department of Education to support multilingual learning programs in schools. Lawmakers also added $740,000 to support the Rhode Island Auditory Oral Program, which provides critical early intervention, school-based programming, technology support and outreach services to children with hearing loss.
For higher education, the proposal authorizes a ballot question asking voters to approve $275 million in borrowing for improvements at higher education facilities aimed at strengthening workforce preparedness, including $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 budget includes a proposal to institute a high-earner’s tax of 1% a year over three years on income exceeding $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.
Legislators have 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.
To support families, lawmakers have 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 assistance eligibility will also be increased to 285% of the federal poverty level, and childcare providers’ reimbursement rate for infants will increase.
Legislators have raised the amount of child support a family enrolled in RI Works can keep to the federal maximum, which is $100 per month for one child, and $200 per month for more than one child. The budget also directs the Department of Children, Youth and Families to establish segregated savings accounts for foster children receiving federal benefits Social Security, conserving them for the children’s later use rather than using them to offset the cost of their care.
The budget provides $2.95 million to Rhode Island Community Food Bank to help address food insecurity.
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’s maintenance programs.
Housing
The bill includes 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’s operating budget shortfall and provides 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 RIPTA’s 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
Lawmakers have addressed energy rates without jeopardizing 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, and modifying the net metering program, 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 climate resiliency measures.
More
Legislators have not included proposals by the governor to raise tobacco taxes or to raise cruise ship landing fees. They have also declined his proposal to seek voter approval for a $50 bond for new career and tech education programs, both to keep the total borrowing costs in check and because the funding wouldn’t cover the proposal.
Other bond questions in the budget include $100 million for economic development initiatives and a $50 million cultural economy bond for grants to cultural institutions and a state archives and history building.
For more information, contact:
Meredyth R. Whitty, Publicist
State House Room 20
Providence, RI 02903
(401) 222-1923
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