Governor McKee Signs Fiscal Year 2027 Budget, Advancing Key Affordability for All Initiatives

Published on Friday, June 12, 2026

Budget puts more money back in Rhode Islanders’ pockets, keeps Rhode Island building with a historic bond proposal, and protects vulnerable Rhode Islanders from President Trump’s reckless cuts

PROVIDENCE, RI — Governor Dan McKee today signed the Fiscal Year 2027 budget, making key investments to help Rhode Islanders with the rising cost of living, shield vulnerable Rhode Islanders from federal cuts, and continue to support projects that support jobs and the economy.

“This budget keeps our promises to Rhode Islanders: delivering affordability, protecting vulnerable residents from harmful federal cuts, and continuing to invest in the schools, housing, and infrastructure that support good-paying jobs and economic growth,” said Governor McKee . “And while this budget represents meaningful progress, I want to be clear: my fight for affordability is far from over.”

Governor McKee continued, “I thank Speaker Blazejewski, Senate President Lawson, and all the Rhode Islanders who helped shape this budget that will continue to move our state forward.”

“This budget addresses 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 and prioritizing. 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. “I’m very grateful to our House Finance Committee and all the House members, Senate President Lawson and her colleagues, and Governor McKee, all of whom contributed to shaping this budget and making it a real reflection of our state’s priorities.”

“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, and I am also grateful to Governor Daniel McKee, who has remained focused on lowering costs for Rhode Islanders,” said Senate President Valarie J. Lawson (D-Dist. 14, East Providence).

Affordability for All

With rising costs continuing to put pressure on families nationwide, Governor McKee introduced Rhode Island’s first Affordability for All agenda in January to lower costs and put money back in Rhode Islanders’ pockets. The General Assembly approved a significant portion of the Governor’s Affordability for All agenda in the Fiscal Year 2027 budget.

Creating Rhode Island's first Child Tax Credit: This budget creates Rhode Island's first-ever Child Tax Credit, providing a refundable $330 tax credit per child and delivering $47 million in annual tax relief to more than 70,000 qualifying families.

Cutting the state tax on Social Security: This budget ends the state tax on Social Security for 9,200 early retirees who are not currently exempt. Governor McKee will continue fighting for the full elimination of the state tax on Social Security next legislative session.

Delivering $500 million in energy relief : This budget takes a good first step by delivering $500 million in energy relief over the next five years by eliminating bonus payments for utility shareholders, expanding access to lower-cost clean energy resources such as nuclear power and large-scale hydropower, addressing virtual net metering costs, and reducing near-term charges associated with utility paving projects.

At a time when states like Massachusetts, Connecticut, New York, and Maryland are taking steps to balance clean energy targets with affordability, Governor McKee will continue fighting to lower energy costs and help Rhode Islanders struggling to pay their electric bills.

Protecting access to health care: This budget invests $19 million to backfill expired enhanced Affordable Care Act subsidies, helping keep health coverage affordable for approximately 20,000 Rhode Islanders who purchase insurance through HealthSource RI. Without this investment, an estimated 6,500 Rhode Islanders could lose coverage.

Combined with the Executive Order Governor McKee signed on March 12, 2026, to lower marketplace premiums, these actions will protect affordable coverage for approximately 40,000 Rhode Islanders.

Lowering health care costs: This budget gives the Office of the Health Insurance Commissioner new authority to set enforceable annual health care cost-growth targets for insurers and increases prescription drug transparency by requiring Pharmacy Benefit Managers to report rebate, pricing, and fee data. Together, these measures strengthen oversight and help control rising health care costs.

The budget also eliminates the health insurance fee, lowering premiums for the average family of four by nearly $200 annually at a time when health care costs continue to rise nationwide.

Extending the Hope Scholarship for three years: This budget extends the Hope Scholarship, which provides eligible in-state students with tuition-free junior and senior years at Rhode Island College.

“Keep Rhode Island Building” General Obligation Ballot Initiatives

Governor McKee has been committed to keeping Rhode Islanders working in good-paying jobs, building projects that will strengthen our state for generations to come. Together, the Governor and General Assembly delivered a historic bond package to advance housing, higher education, economic development, climate resilience, and the cultural economy.

Higher Education Facilities ($275 million) : Investing in capital infrastructure at all three, public institutions of higher education, including an integrated health building for the University of Rhode Island ($165 million); a workforce innovation center on the Warwick Campus of the Community College of Rhode Island ($60 million); and a student success and career readiness center at Rhode Island College ($50 million).

Housing and Homeownership ($120 million) : Increasing and preserving the State’s affordable housing portfolio through redevelopment, new construction, property acquisition, and infrastructure improvements. $25 million of this bond is dedicated to increasing homeownership across Rhode Island, a priority of Governor McKee.

Economic Development ($100 million) : Creating pad-ready locations and facilities in the Quonset Business Park ($55 million) and investing in infrastructure that supports Rhode Island’s ocean, defense, life sciences, data analytics, and related industries ($45 million).

Green Economy ($55 million) : Investing in vulnerable coastal habitats, recreational facilities, brownfields remediation, and Narragansett Bay’s water quality, among other initiatives. This includes the state’s largest-ever investment in climate resiliency through the Resilient Rhody Fund ($25 million).

Cultural Economy ($50 million) : Constructing a State History Center ($45 million) and providing matching grant opportunities for municipalities and nonprofits to preserve and renovate historic sites that are open to the public ($5 million).

Protecting Rhode Islanders from President Trump’s Safety Net Cuts

By asking the wealthiest Rhode Islanders to pay a little more through a phased-in millionaire's tax, this budget also protects Rhode Islanders from reckless cuts by the Trump Administration, a promise Governor McKee made in his State of the State address.

Investing approximately $20 million for information technology, personnel, and resources to ensure that Rhode Islanders can retain their Medicaid and SNAP benefits in response to the federal reconciliation bill called H.R. 1, as well as to maximize the amount of federal funding that the State receives for these critical programs.

Providing $26 million from all sources of funds to be distributed to Rhode Island-based hospitals through the established Disproportionate Share Hospitals payment to help offset losses related to uncompensated care.

Increasing the Office of the Health Insurance Commissioner’s recommended rates with $45.8 million in state funds in Fiscal Year 2027 for social and human services providers.

Tripling the amount of funding for the Rhode Island Community Food Bank (RICFB) from $1 million to $3 million, including $250,000 designated for RICFB to distribute as grants to other food organizations.

Helping preserve access to essential preventive health services by providing $1 million to providers like Planned Parenthood RI, whose patients lost access to these services because of restrictions imposed by H.R. 1.

Supporting K-12 and Higher Education

Providing a total of $1.31 billion in per-pupil education aid, which is an increase of $38.4 million over Fiscal Year 2026.

Boosting high-cost special education funding by $2.5 million, from $17.5 million in Fiscal Year 2026 to $20 million in Fiscal Year 2027, to ensure students with the greatest needs receive the services and supports they deserve.

Providing $2 million for the Governor’s Learn365RI program to expand access to high-quality out-of-school learning opportunities and help students succeed year-round.

Investing in Rhode Island’s three public institutions of higher education with an additional $6.6 million to support students and strengthen the state’s public higher education system.

Additional Investments

The budget also invests $10 million in Rhode Restore, Governor McKee’s successful local road repair program; $24 million in the state’s Rainy Day Fund; and $5 million in the University of Rhode Island to support the proposed medical school.

The budget also expands eligibility for child care assistance from 261% to 285% of the federal poverty level and increases maximum reimbursement rates for childcare providers, helping more Rhode Island families access affordable, high-quality child care while strengthening the workforce that makes it possible.