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The Rhode Island House approved a record $15.2 billion fiscal 2027 budget by 64-10, including a three-year phased-in wealth tax rising to 8.99% by 2029 on income over $1 million. The tax is expected to generate $22.4 million in fiscal 2027 and $142 million by 2030. The budget also funds a new inspector general's office and increases spending on healthcare and transit.
Rhode Island's fiscal 2027 budget proposal totals $14.34 billion, a $523 million increase over the prior year and a 3.6% rise. Governor McKee says the state can afford the spending increase partly because Rhode Island collected roughly $230 million more revenue than expected. Critics say the state is overspending, with the budget growing at twice the rate of inflation. Forty-five percent goes to healthcare and human services.
The Rhode Island Department of Health issued its first kratom manufacturer license to an out-of-state manufacturer. RIDOH has received 20 applications across four categories: retailer, distributor, manufacturer, and importer, with 19 pending. The move follows Rhode Island's recent legalization of kratom with regulations requiring licenses, age restrictions, and labeling.
The House Finance Committee gave initial approval to a revised $15.2 billion fiscal 2027 budget on May 29 featuring a phased-in millionaire's tax over three years instead of a single-year increase. House Speaker Christopher Blazejewski called the graduated approach a legislative compromise, though both business groups and progressive advocates expressed dissatisfaction. The budget now awaits full House and Senate votes.
Legislation to limit availability of anticoagulant rodenticides passed the Rhode Island House in a 56-8 vote on June 4, following unanimous Senate approval on May 26. Sponsored by Rep. Rebecca Kislak and Sen. Melissa Murray, the bill restricts consumer access to certain rat poisons that harm predator species. Concurrence votes are expected soon before the measure heads to Gov. McKee's desk.
High Rock Development's Superman Building project received critical approval from the USDOT's Build America Bureau for its Creditworthiness Review phase, advancing the project toward a federal loan exceeding $200 million. The approval is reportedly the first under the Trump administration's Build America Bureau. State and city officials have pledged nearly $90 million in subsidies, tax credits, and tax breaks for the Providence landmark's conversion to apartments.
Spending on the Washington Bridge project has passed $200 million as construction activity ramps up, according to state officials. The bridge has been under emergency repair since sections closed following structural failures discovered in late 2023.
The Rhode Island House of Representatives approved a $15.2 billion fiscal 2027 budget in a 65-10 vote on June 5, 2026. The spending plan is the highest in state history, featuring a phased-in millionaire's tax that raises the rate on income over $1 million by 1% per year over three years, eventually reaching 8.99% in 2029. It also creates a state inspector general's office and increases funding for healthcare, families, and public transit. All Republican lawmakers voted against the budget, citing unsustainable growth.
The Rhode Island Senate approved two bills on June 4, 2026, to restrict state and local participation in federal immigration enforcement and allow lawsuits against ICE officials in state court. The legislation, sponsored by Senate Majority Leader Frank Ciccone, passed 31-7 and permits individuals to sue federal immigration officials for constitutional violations, with a three-year statute of limitations. Similar laws have been enacted in Illinois, New York, and Vermont.
The Rhode Island House unanimously approved a joint resolution on June 3, 2026, repealing the state's May 31, 1861 ratification of the Corwin Amendment, which would have protected slavery as a states' rights issue. The rarely-known amendment never became law, as only five states ratified it before the Civil War broke out. The repeal effort was triggered by a State House publicist's archival discovery in February 2026.
The Rhode Island General Assembly advanced a new high-income tax as part of the FY2027 budget, phasing in a rate increase on income over $1 million over three years starting in 2027. The Greater Providence Chamber of Commerce warned the tax will impact many business owners who report income through LLCs, partnerships, and S-corporations, citing RIPEC research. The measure passed the House Finance Committee and awaits full legislative approval.
