All Roll Calls
Yes: 1,984 • No: 660
Rhode IslandH50762025 Regular SessionHouseWALLET
AN ACT MAKING APPROPRIATIONS FOR THE SUPPORT OF THE STATE FOR THE FISCAL YEAR ENDING JUNE 30, 2026 .
Sponsored By: Marvin L. Abney (Democratic)
Became Law
Personalized for You
How does this bill affect your finances?
Personalize government policy and PRIA will tell you what this bill means for your household, plus every other piece of legislation we track. PRIA reads each provision against your financial profile to show you exactly what matters to your wallet.
Bill Overview
Analyzed Economic Effects
115 provisions identified: 65 benefits, 27 costs, 23 mixed.
Baby Bonds build savings for children
Beginning July 1, 2026, designated Baby Bond beneficiaries receive an account credited with $3,000 at birth, plus investment earnings. Starting at age 18, beneficiaries can claim money after two years of Rhode Island residency. Allowed uses include specified Rhode Island education or apprenticeships, homeownership, business ownership, and qualifying investments. Claims must be made before age 35. Money returns to the state if the beneficiary dies before 18, misses the deadline, or is not a resident at 35.
Eligible newborns get $3,000 Baby Bonds
The state deposits a one-time $3,000 into the Baby Bond Trust for each eligible child born the preceding calendar year. Children must be born on or after January 1, 2026, with a parent or guardian enrolled in Rhode Island Works. Deposits use money otherwise going to the General Fund. Beginning July 1, 2026, credited funds and growth do not count as personal assets for state or local assistance eligibility. This includes disability, medical, health, and student aid programs, except where federal law requires otherwise.
Tighter Medicaid rules for home care
The law removes preventive care needs as a qualifying level for core Medicaid home- and community-based services. People must meet the remaining highest or high level-of-care standards. People needing only preventive support no longer qualify through this eligibility path.
Nursing homes face staffing rules, waivers
Beginning July 1, 2025, nursing homes must average 3.81 direct-care hours per resident daily, measured quarterly. At least 2.2 hours must come from certified nursing assistants, medication aides, or nurse aides in training. More staff types count, including specified nurses, therapy assistants, respiratory care workers, social workers, and activities staff. Staffing violations require fines up to $1,000 daily; qualifying emergencies or acute local nursing shortages allow reductions, but not below $250. Fines for periods before the third quarter of 2025 are forgiven. Facilities can receive renewable waivers lasting up to one year based on resident needs, documented staffing efforts, culture changes, or specified quality records. The law also sets aside $600,000 to train nursing home care and support staff.
Community mental health services receive funding
Beginning July 1, 2025, federal recovery money supports certified community behavioral health clinics responding to increased pandemic-related mental health needs. Covered work includes behavioral health services, medical screening and monitoring, and social services; no funding amount is stated. Separately, $250,000 in Social Services Block Grant money goes to The Providence Center. It must coordinate with Oasis Wellness and Recovery Center on support and services for people with behavioral health issues.
Disability services and worker raises funded
The law funds department-approved direct-care raises, payroll costs, and new disability service rates required by the Consent Decree Addendum. The Transformation Fund receives $928,200 in state money and $371,800 in federal money for integrated day activities and supported employment. Of the state money, $650,000 supports regional advice and substitute staff for people who direct their own services. Unused or uncommitted Transformation Fund money carries into the next fiscal year for the same purpose. Special Olympics Rhode Island also receives $50,000 for athletic opportunities for people with intellectual or developmental disabilities.
Insurers must accept Medicaid care approvals
Health insurers must accept Medicaid's approval of a covered item or service for a Medicaid-eligible person. This approval counts as the insurer's own prior authorization. Insurers cannot deny the claim solely because their separate approval process was not completed.
Senior meals and caregiver support funded
The law provides $325,000 for Diocese of Providence elder services, including respite, and $40,000 for Alliance for Long Term Care ombudsman services. It provides $1.6 million for Senior Services Support and $680,000 for elderly nutrition, including $630,000 for Meals on Wheels. Long-term-care counseling must include caregiver support and respite information. Facility residents and people seeking admission receive counseling on request; Medicaid long-term-care applicants must receive it.
Survivor services receive federal recovery funds
Beginning July 1, 2025, federal recovery funds support Rhode Island nonprofits serving domestic violence and sexual assault survivors. Funded services include housing, clinical and mental health care, therapy, counseling, job training, relocation assistance, and case management. This provision does not state a funding amount or individual eligibility terms.
College students receive scholarship program funding
For the year ending June 30, 2026, the law provides about $8.34 million for Rhode Island Promise scholarships. Rhode Island Hope scholarships receive about $5.48 million. Designated CollegeBoundSaver funds also support student aid through the Division of Higher Education Assistance. These provisions do not set individual awards or new scholarship eligibility rules.
Businesses get longer research credit carryforwards
For tax years beginning on or after January 1, 2026, unused qualified research expense credits can carry forward for 15 years. The previous limit was seven years. The existing limit on how much credit can reduce tax due stays in place.
Assault weapon owners face new limits
The law bans making, selling, offering, buying, transferring, possessing, or controlling defined assault weapons and covered parts, with statutory exceptions. The definition excludes the stated .22-caliber rimfire rifles; exceptions also cover licensed dealers, law enforcement, and official military duties. Lawful existing owners have one year from the chapter’s effective date to register, permanently disable, surrender, or transfer to an authorized recipient. Ban violations carry up to 10 years in prison or a fine up to $10,000, plus weapon forfeiture. Certificate holders are limited to authorized homes, businesses, ranges, clubs, exhibitions, and transport, with secure storage required outside immediate control and during specified transport. Those certificate rules took effect upon passage; violations carry up to $2,500, three years in prison, or both, plus forfeiture.
Higher transfer taxes on expensive homes
Covered residential transfers above $800,000 face an added tax on the amount above that threshold. Transferors pay $1.65 for each $500, or part of $500, above $800,000. Covered transfers include interests in an acquired real estate company. Payment follows the existing conveyance-tax process, and proceeds go to the Housing Resources and Homelessness account.
Several business tax breaks end
For tax years beginning on or after January 1, 2026, several business and investment tax breaks end. These include qualifying-business wage credits, venture-capital and qualifying-business investment deductions or tax adjustments, and Employment Tax Credits. New certified-building rehabilitation credits, research-facility deductions, and research-property credits also end. Eligible building and research-property credits from tax years ending by December 31, 2025, retain their existing carryforward rules. Eligible research-facility deductions from those earlier years can still carry forward for up to three years.
Assault weapon owners face registration rules
Owners seeking possession certificates for assault weapons lawfully held by the chapter's effective date must register within one year. Registration requires a separate form for each weapon, a fingerprint-based background check, and one $25 fee per person. Owners choosing permanent disabling must certify the date under penalty of perjury to local law enforcement or, in specified cases, state police. Disabled weapons must be unable to fire an explosive shot and not readily restorable. Certificate holders' names and addresses stay confidential, except through court orders or disclosures to law enforcement, probation, or parole officers performing their duties. These rules took effect upon passage.
Recovery homes face certification requirements
The state behavioral health department must certify recovery homes directly or through a contractor using National Alliance for Recovery Residences standards. On the department's schedule, state agencies and state-funded facilities must refer people only to certified homes. Only certified homes may receive state funding. Beginning January 1, 2027, all recovery homes must register with the department and follow the certification process.
Baby Bond growth exempt, payouts taxable
Beginning July 1, 2026, Rhode Island and local governments do not tax Baby Bond Trust property or earnings. Beneficiary payouts count as income subject to Rhode Island personal income tax. Federal and state tax withholding also applies to those payouts.
Court advocacy and crisis support funded
For the year ending June 30, 2026, the Rhode Island Coalition Against Domestic Violence receives $500,000 for domestic abuse court advocacy. Family Service of Rhode Island receives $400,000 for its GO Team. That program provides on-scene support to children affected by violence or other trauma.
Customers can cancel contracts by email
Health club members and social referral service buyers can send written cancellation notices to the email address in their contracts. Health club notice must be given before midnight of the tenth day after the contract date. Social referral notice must be sent before midnight of the third business day after receiving the contract. Existing cancellation methods remain available, and the deadlines do not change.
Breast cancer survivor center receives support
The law provides $50,000 to support the Gloria Gemma Breast Cancer Resource Foundation. The funding also supports its new survivorship and well-being center in Lincoln, Rhode Island. It does not establish a direct household payment.
Disability programs for children receive funding
Best Buddies Rhode Island gets $75,000 for the year ending June 30, 2026. The money supports programs for children with developmental and intellectual disabilities. It is program funding, not a direct household payment.
Medicaid adds consultations and claim deadlines
Insurers and other liable third parties doing business in Rhode Island must answer Medicaid recipients' written claim inquiries within 60 business days. The clock starts when they receive the recipient's written documentation. Beginning October 1, 2025, the law establishes a Medicaid consultation program involving health professionals. The health and human services secretary must pursue and implement the needed state plan amendments; funding and service limits are not stated here.
Veterans groups receive service funding
The law provides $200,000 for support services through veterans' organizations and $50,000 for Operation Stand Down. It also provides $100,000 for the Veterans Services Officers program through the Veterans of Foreign Wars. The funding does not establish individual payment amounts or eligibility rules.
Flood-area owners get height measurement relief
The law changes how building height is measured in covered flood areas. It excludes the greater of the specified federal flood-elevation amount or the state's suggested design elevation amount. Covered sites include federal special flood hazard areas. They also include areas flooded in a 100-year storm on the coastal council's three-foot sea-level-rise map.
Low-income tenants get legal defense funding
Rhode Island Legal Services gets $90,000 for the year ending June 30, 2026. The money supports housing and eviction defense for people who cannot afford legal help. The law does not set a payment or service amount per person.
More accessible housing for disabled residents
The Livable Home Modification Grant Program gets $765,278 for the year ending June 30, 2026. It funds accessibility changes that help people remain in community settings, in consultation with the state's health and human services office. Unspent or uncommitted money carries into the next year for the same purpose. The law also waives local zoning requirements for state-licensed community homes serving six or fewer children or adults with intellectual or developmental disabilities.
Head Start services receive continued funding
The law sets aside $3 million in federal funds to sustain Early Head Start and Head Start programs. This supports early childhood services for participating families. It does not change eligibility or set a household benefit amount.
Loan repayment help for primary doctors
The Department of Health must use $200,000, plus its corresponding federal match, for health professional loan repayment assistance. This funding is for primary care physicians and pediatricians through the Health Professional Loan Repayment Program. The law does not set an individual award amount.
Lower-income four-year-olds gain preschool priority
Early childhood funding must prioritize pre-kindergarten seats and classrooms for qualifying four-year-olds. Family income must be at or below 185% of federal poverty guidelines. Children must also live in communities with higher concentrations of low-performing schools. The law does not guarantee a seat or set the number available.
More nursing-home workers qualify for raises
Nursing facilities must use 80% of specified Medicaid rate increases for compensation increases for eligible direct-care staff. The rule covers inflation-index increases and, in years without them, the specified base-rate staffing adjustment. Newly covered roles include nursing directors, administrative nurses, nurse aides in training, occupational therapy assistants, respiratory therapists, maintenance workers, social workers, and activity staff. RNs and LPNs classified as exempt under federal wage law remain excluded. Agency-contracted or subcontracted CNAs, medication technicians, RNs, and LPNs also remain excluded.
Public college students get career support
For the year ending June 30, 2026, career programs receive $874,069 at the University of Rhode Island. Rhode Island College receives $464,377, and the Community College of Rhode Island receives $391,175. The money supports career readiness, job placement, internships, and work-based learning.
Remote workers gain clearer zoning rights
Beginning January 1, 2026, qualifying remote work is permitted in residential, industrial, and commercial zoning districts. It covers W-2 employees and full-time contractors routinely working from an approved site away from their usual work location. It excludes unlawful activity, added on-street parking, substantial neighborhood traffic, and work outdoors or visible from the street. The rule does not apply where residential use is barred for public health or safety. Qualifying remote work is also excluded from the zoning definition of a home occupation.
Students receive targeted school support funding
For the year ending June 30, 2026, Hasbro Children's Hospital's school receives $90,000, and child opportunity zones receive $395,000. Another $450,000 and three full-time positions support special education work helping with individualized education plans and Section 504 services. City Year's Whole School Whole Child Program receives $130,000 for individualized help for at-risk students. The Paul V. Sherlock Center receives $684,000 for the Rhode Island Vision Education and Services Program. The vision funding comes from the education department's administrative share of federal special education funds.
Teachers of color receive education support
For the year ending June 30, 2026, the Rhode Island School for Progressive Education receives $100,000. The money supports higher education opportunities for teachers of color. The law does not set individual awards or the number of teachers served.
University students gain clearer credit pathways
The University of Rhode Island must develop transfer pathways from the Community College of Rhode Island and Rhode Island College. Its board must require every academic program to accept Advanced Placement subject-test scores of 3 or higher for credit. Required performance measures cover four- and six-year bachelor's completion for first-time, full-time students and degrees tied to high-demand, high-wage Rhode Island jobs. They also include a university-specific measure, with faculty and student input during development. The law does not set credit amounts or tuition savings.
Buyers save tax on firearm safeguards
Qualifying firearm safety and storage devices bought separately are exempt from sales and use tax. Safety devices must prevent operation without deactivation or authorized access. Storage devices must be mainly designed and marketed for safe storage or display, with a combination, key, or biometric lock. A firearm sold with a safety device already installed remains a taxable firearm sale.
Wavemaker fellows get longer incentive access
The law extends authorization for Wavemaker fellowship incentives and credits through December 31, 2026. The prior cutoff was December 31, 2025. Eligible fellows and other applicants retain access during this extra year; individual benefit amounts are not specified.
Ad customers protected from tax surcharges
Beginning January 1, 2026, digital ad sellers cannot directly pass this tax to customers through a separate charge. The ban covers a separate fee, surcharge, or line item. It does not prevent other price changes.
Fewer local licenses for businesses
Cities and towns can no longer license schools teaching jiu-jitsu or karate. The related license fee and fine for teaching without a license are repealed. Retail stores also no longer need a local holiday license to open. Opening restrictions remain for Thanksgiving Day and December 25, with existing statutory exceptions.
Hemp applicants get revised licensing rules
The Cannabis Control Commission no longer must wait 60 days after the chapter takes effect to accept hemp cultivation applications. Exceptions in the licensing section still apply. The law also makes the license ban for listed convictions subject to Rhode Island General Laws § 28-5.1-14. The supplied provision does not explain that cross-reference's effect on eligibility.
Small businesses keep access to assistance
The law removes the December 31, 2025 cutoff for Small Business Assistance Program grants, funding, and incentives. Assistance remains subject to program requirements and available funds. The Small Business Development Center also gets $700,000 for the year ending June 30, 2026. That money supports economic development and helps draw federal funding; no individual business award amount is set.
Civic and history programs receive grants
The law provides $100,000 for the Rhode Island Council for the Humanities' grants to civic and cultural organizations. It provides $50,000 for Rhode Island's participation in the We the People Civics Challenge. Historical society funding includes $125,000 for the Rhode Island Historical Society and $18,000 for the Newport Historical Society. The Rhode Island Black Heritage Society receives $25,000.
Conservation and wildlife care receive funding
For the year ending June 30, 2026, conservation districts receive $180,000 from the Department of Environmental Management. The Wildlife Rehabilitators Association of Rhode Island receives $100,000 for a veterinarian at the Wildlife Clinic of Rhode Island. The law also provides $150,000 for marine mammal response activities, used with matching federal funds.
Sex offender discharge planning receives funding
Crossroads Rhode Island receives $1.05 million for the fiscal year ending June 30, 2026. The money supports discharge planning for sex offenders leaving state corrections custody.
WaterFire and Fort Adams receive funding
For the year ending June 30, 2026, WaterFire Providence receives $400,000 for operating its art installations. The Fort Adams Trust receives $30,000 for operating costs tied to restoration activities.
Community groups receive food and service grants
Human Services funding includes $400,000 for domestic violence prevention through the Coalition Against Domestic Violence; $25,000 for the Center for Southeast Asians; and $450,000 for Project Reach through the Rhode Island Alliance of Boys and Girls Clubs. It provides $300,000 for Day One; $550,000 for the Rhode Island Community Food Bank; and $500,000 for Crossroads Rhode Island. It also provides $600,000 for the Community Action Fund; $250,000 for the Institute for the Study and Practice of Nonviolence; and $200,000 for United Way's 211 system. Higher Ground International receives $125,000; the Refugee Dream Center receives $50,000; and the Substance Use and Mental Health Leadership Council of Rhode Island receives $100,000. These grants fund organizations, not fixed payments to households.
Regional groups receive substance use prevention funds
The law distributes $450,000 from the opioid stewardship fund among seven regional substance abuse prevention task forces. The money is divided equally for the fiscal year ending June 30, 2026. Each task force chooses which prevention priorities its share supports.
Charter schools gain funding cut limits
Beginning in fiscal year 2026, home districts face a cap on specified local school funding reductions. The reduction cannot exceed 14% of the local per-student amount. This protects payments to charter public schools, Davies, and the Met Center.
High-poverty school districts get extra aid
Beginning with the fiscal year 2026 aid calculation, qualifying districts get a 3% increase in the student success factor. This factor helps determine state foundation education aid. Districts must have poverty status of at least 60% under the state formula. The law does not specify added dollars per district or student.
Onward We Learn receives state funding
The law allocates $455,000 to Onward We Learn for the fiscal year ending June 30, 2026. The money comes from the Office of the Postsecondary Commissioner's appropriation. This provision does not specify funded services or individual payments.
Renewed mayoral academies choose board chairs
A mayoral academy may elect any board member as chair after completing its first charter term and receiving an approved renewal. The chair no longer has to be a mayor of an included city or town.
State workers gain contracting review protections
State agencies need the Administration Director’s finding of need before hiring contractors supervised by state employees or replacing their work. Both approvals require positive recommendations from the budget officer and personnel administrator. Approval must wait at least 15 days after a public hearing for contractors supervised by state employees. Contracts replacing current state employee work require at least 30 days after a public hearing.
Tax matching records get confidentiality protections
Financial institutions and authorized agents generally cannot tell delinquent taxpayers that their names were received from or supplied to the tax administrator. The administrator may authorize disclosure in writing. Third-party system operators must keep tax agency and financial institution information confidential. Each unauthorized disclosure carries a civil penalty equal to the greater of $1,000 or the account balance of the person told.
Airport communities receive state impact aid
The state provides $1.010036 million in airport impact aid through the Rhode Island Commerce Corporation. Of the first $1 million, 60% follows passenger shares among airports serving more than 1 million passengers. The remaining 40% follows 2025 landings at North Central, Newport-Middletown, Block Island, Quonset, T.F. Green International, and Westerly airports. Each community containing any part of a listed airport receives at least $25,000.
College Visions receives state grant funding
The law provides $50,000 for College Visions for the fiscal year ending June 30, 2026. The provision does not identify funded activities, service recipients, or direct household payments.
Faster payments support senior disability transit
The Office of Healthy Aging must reimburse the public transit authority for elderly and disabled transportation program expenses. Payment is due within 15 days after the authority submits a request. This deadline applies to agency payments, not rider bills.
Federal funds support recovery program oversight
Beginning July 1, 2025, federal State Fiscal Recovery Fund money finances the Pandemic Recovery Office within the Department of Administration. Capital Projects Fund appropriations also support the department's oversight of the federal American Rescue Plan capital projects award. These provisions do not state funding amounts or establish household payments.
Federal recovery funds retain spending flexibility
Beginning July 1, 2025, unspent, uncommitted State Fiscal Recovery Fund and Capital Projects Fund balances carry forward for the same purposes. Final approval remains with the General Assembly through the supplemental budget. The Pandemic Recovery Office must track performance, underspending, compliance risks, and possible remedies. When a recovery program risks federal fund forfeiture, the governor can shift its funding to Treasury-eligible uses, notifying lawmakers within 30 days. The reporting schedule runs quarterly through January 31, 2025, then twice yearly from April 30, 2025, through October 31, 2026.
Local governments keep vehicle tax reimbursements
Beginning in fiscal year 2026, cities, towns, and fire districts continue receiving motor vehicle excise tax reimbursements. Each receives the greater amount produced by the law's two applicable reimbursement formulas. This continues in later fiscal years. The provision states no statewide total and creates no direct household payment.
State funds buildings and local roads
Beginning July 1, 2025, the law authorizes listed capital-project payments for fiscal years ending June 30, 2027 through 2030. Projects cover state buildings, public colleges, environmental work, and transportation; payments require authenticated vouchers and must stay within listed amounts. Unspent and uncommitted capital funds carry forward for the same purpose, subject to final legislative approval in the supplemental budget. Carryover below $500 is at the state budget officer's discretion. Separately, RhodeRestore gets $6.5 million for municipal road, sidewalk, and bridge construction and maintenance.
Towns gain road project matching flexibility
Approved municipal road and bridge projects can receive revolving-fund assistance without appearing on the project priority list. The assistance must match other federal, state, local, or other funding. The law states no assistance amount.
Fewer health projects need state review
Certificate-of-need review now covers hospitals, nursing facilities, inpatient rehabilitation hospitals, and freestanding emergency-care facilities. Home-care, hospice, outpatient surgery, and inpatient hospice providers leave the facility definition; Christian Science institutions remain excluded. The equipment definition now covers only linear accelerators and PET scanners. Review still covers new facilities, defined capital spending, qualifying leases or donations, and certain hospital bed changes. Listed new or expanded services also need review: cardiac catheterization, obstetrics, open-heart surgery, organ transplants, and neonatal intensive care.
Medicaid hospital payment rates increase
For the 12 months starting July 1, 2025, Medicaid inpatient and outpatient hospital rates rise to 102.3% of specified 2024 rates. Fee-for-service payments use July 1, 2024 rates; managed-care payments use January 1, 2024 rates. Beginning July 1, 2026, annual increases follow the applicable federal hospital input price index. Managed-care increases subtract a productivity adjustment and are paid retroactively as the law specifies.
Nursing homes receive higher Medicaid rates
Medicaid nursing facility rates rise 2.3% for October 1, 2025 through September 30, 2026. The increase uses federally approved rates in effect on October 1, 2024 as its base. It applies to both fee-for-service and managed-care payments. This changes provider payments, not a stated payment to residents.
Psychiatric hospital gains drug reimbursement authority
The state psychiatric hospital program can receive and spend pharmacy benefit provider reimbursements through the Medicare Part D account. Spending must serve purposes allowed by the governing chapter. The law states no amount and does not change patients’ Medicare drug benefits.
State health projects gain review exemptions
State health facility capital projects funded by voter-approved state bonds or legislative capital funding do not need certificate-of-need review. The application-fee exemption also expands to equipment owned and operated by Rhode Island. State-owned and state-operated facilities keep their fee exemption. The law states no funding or fee amount.
Housing agency must support neighborhood housing
For the year ending June 30, 2026, Rhode Island Housing must fund the Neighborhood Opportunities Program from its own resources. The agency decides how much funding is appropriate. It must report the amount provided and the number of housing units resulting from that funding. The law sets no funding floor or individual assistance amount.
Adult learners receive education and workforce support
Beginning July 1, 2025, federal State Fiscal Recovery Fund money goes through the state adult education office to nonprofit providers. It supports expanded adult learning and literacy access; the amount is not stated. For the year ending June 30, 2026, the labor department must direct $200,000 to Year Up. The Institute for Labor Studies & Research also receives $125,000, without specific funded activities listed.
Learn365RI keeps unused education funding available
Learn365RI funds that remain unspent or uncommitted on June 30, 2026, stay available in the next fiscal year. The law does not state the amount carried forward.
Public colleges keep leftover state funds
Rhode Island's three public colleges can carry leftover appropriations into fiscal year 2027. This covers the University of Rhode Island, Rhode Island College, and Community College of Rhode Island. Funds must be unspent or uncommitted on June 30, 2026. The law does not set a carryover amount or change student aid eligibility.
State funds regional higher education membership
The law provides $151,410 for Rhode Island's membership in the New England Board of Higher Education. The funding covers the year ending June 30, 2026. This provision does not specify a direct student benefit or household payment.
Business development incentives stay open longer
Six Rhode Island development programs extend their authorization cutoff from December 31, 2025, to December 31, 2026. The extension covers Tax Increment Financing and Tax Stabilization Incentive agreements, plus First Wave Closing Fund financing reservations. It also covers I-195 Redevelopment Project Fund funding, credits, and incentives, and Main Street streetscape incentives. Innovation Initiative vouchers, grants, and incentives remain available for authorization during the extension too. The law does not set new award amounts or financing terms in these provisions.
Business development tax credits last longer
Eligible applicants can continue seeking Rebuild Rhode Island and Qualified Jobs tax credit reservations through December 31, 2026. Both programs previously had a December 31, 2025, cutoff. The law extends the reservation period without specifying individual credit amounts.
Drivers pay higher transaction technology fees
The Division of Motor Vehicles charges $3.50 per covered fee transaction for technology, up from $2.50. Motor vehicle inspection transactions are exempt. The money supports DMV computer projects, maintenance, and improvements.
Electric vehicle owners pay added fees
Battery electric vehicle owners pay an added $150 registration fee; plug-in hybrid owners pay $75. These fees apply to automobiles, motor trucks, and tractors, on top of weight-based registration fees. Beginning July 1, 2027, fees adjust every other year by the same percentage as the gasoline tax. Adjustments round to the nearest dollar and cannot lower fees below $150 and $75.
New tax on whole-home vacation rentals
Beginning January 1, 2026, whole-home short-term rentals carry a 5% tax on the occupancy charge. It applies to an entire house, condo, or other dwelling, not just a room. The tax is in addition to other taxes and fees. For returns and payments received after December 31, 2025, proceeds go to the Department of Housing's Housing Resources and Homelessness account.
University projects authorize more fee-backed debt
The University of Rhode Island health and counseling center financing limit rises from $29 million to $33.6 million. Its expected 30-year debt payments total no more than $78 million, supported by fees from auxiliary enterprises using the facility. Memorial Union financing rises from $57.6 million to $118 million, with total debt payments not expected to exceed $272 million. Student fees and retail lease payments support that debt. The law does not set individual student fees for either project.
Higher cigarette tax can raise prices
Rhode Island raises the cigarette tax from 22.5 cents to 25 cents per cigarette. It covers cigarettes sold or held for sale, plus unstamped cigarettes stored or used in the state. Consumers may face higher prices as sellers pass along the increase.
Employers must follow assessment payment directions
Employers must pay required employment-security contributions and assessments at the times and in the manner set by the director. The provision does not change how those amounts are calculated.
Cigarette businesses owe inventory catch-up tax
The law imposed a one-time tax of 2.5 cents per cigarette on covered retailer inventory and licensed distributors' cigarette stamps. It measured stock held in Rhode Island at 12:01 a.m. on September 2, 2025. Returns and payment were due September 16, 2025. This was a business payment obligation, not a direct household tax bill.
Newport gains stronger lodging tax collection
Newport can collect the 5% hotel tax, 1% local hotel tax, and 5% whole-home short-term rental tax. This applies to covered properties in the city and does not change those rates. The city can recover delinquent hotel and whole-home rental taxes. Unpaid tax, penalties, and interest form a lien on the taxpayer’s real property.
Unapproved health projects lose funding routes
Government agencies cannot reimburse new institutional health services or equipment without Health Department approval. The department also cannot fund or contract with someone who proceeds after project disapproval. It cannot recommend state or federal funding for that person either. These limits govern project funding, not household payments.
Courthouse occupancy offsets face funding cap
For the year ending June 30, 2026, courthouse occupancy-cost offsets are capped at $1.430073 million combined. The cap covers the Public Defender, Attorney General, Corrections, Children, Youth and Families, and Public Safety agencies. It limits agency offsets, not household payments.
Renewable energy boards lose funding guarantee
The Office of Energy Resources no longer must provide funding support, when needed, to the renewable energy coordinating board or advisory council. The law states no funding amount. It does not establish that support was previously paid or require a specific funding cut.
State approves office and warehouse leases
The law approves up to 10 years for a children's services office lease renewal and an emergency management warehouse lease. The Providence office's total fixed rent is capped at about $23.92 million. Annual fixed rent is capped at about $2.294 million for the first five years and $2.490 million thereafter. The Cranston warehouse's total base rent is capped at about $7.188 million. Both leases depend on annual legislative appropriations.
State surplus transfers to reserves blocked
The controller cannot transfer fiscal year 2024 excess revenue to the state Employees’ Retirement System. Transfers to the supplemental state budget reserve account are also barred under the excess-revenue rule. The law states no amount and does not change individual pension benefits.
Hospitals face lower uncompensated-care payment caps
For federal fiscal year 2025, the Pool C cap for Medicaid-eligible government-owned hospitals falls from $19.9 million to $12.9 million. The combined Pool C and D payment cap falls from $34.7 million to $27.7 million. Payments use participating hospitals' shares of base-year uncompensated-care costs, adjusted for inflation. Required federal Medicaid approvals had to be obtained by June 23, 2025. Payments had to be made by June 30, 2025.
Hospitals face tiered licensing fee rates
For state fiscal year 2026, licensing fees apply to patient-service revenue of hospitals licensed on July 1, 2024. The fees depend on federal approval of a waiver of uniform healthcare-tax rules. Nongovernment hospital inpatient/outpatient rates are 13.12%/13.30% for Tier 1, 2.63%/2.66% for Tier 2, and 1.31%/1.33% for Tier 3. State-owned and operated hospitals pay 5.25%. Fees are due June 25, and returns are due August 1 of each fiscal year.
Medicaid home-care payments lose yearly increases
Beginning July 1, 2025, annual inflation increases end for specified Medicaid fee-for-service personal care, skilled nursing, therapy, and hospice rates. This applies to providers contracted with the state's health and human services office or its subordinate agencies. The state must also pursue and implement Medicaid plan changes ending annual home-care rate increases. The law does not set a new household charge.
Medicaid hospitals face tighter payment limits
The law ends the direction for quarterly Medicaid hospital adjustment payments after state fiscal year 2025. Beginning July 1, 2025, the state must pursue and implement Medicaid plan changes ending inpatient and outpatient upper payment limit payments. For fiscal year 2026, hospital rate increases are limited to expected state tax revenue growth, estimated at 2.3%. These rules change hospital payments, not a set amount patients must pay.
Nursing homes face Medicaid rate limits
Beginning July 1, 2025, the state must pursue and implement Medicaid plan changes limiting nursing-home rate increases for fiscal year 2026. The limit follows expected state tax revenue growth, estimated at 2.3%. It limits provider payment growth rather than setting a resident's bill.
Large nonprofits owe job development assessments
Nonprofits with at least 500 employees must pay the state's job development assessment. Governmental entities are excluded. The director can adopt rules to administer it, but this provision does not state the assessment amount.
Student loan authority transfers state funds
The Rhode Island Student Loan Authority must transfer $2.9 million to the state controller by June 30, 2026. This is a transfer between state entities, not a payment to borrowers. The provision does not change individual loan terms or state how the controller must use the money.
More state contractors face administrative fees
Beginning January 1, 2026, the chief purchasing officer can charge state contractors an administrative fee. The fee cannot exceed 0.33% of annual spending under a contract. This authority is no longer limited to master-price agreements. Fee revenue can pay for purchasing technology, staffing, and other procurement costs.
Banks report accounts for tax collection
The Division of Taxation uses bank data matching to locate non-exempt assets of identified delinquent taxpayers. Financial institutions must report at least each calendar quarter when those taxpayers hold accounts there. Required information includes names, addresses, taxpayer identification numbers, account numbers, and account balances. The system supports collection of overdue state taxes.
Large companies pay digital advertising tax
For tax years beginning January 1, 2026 or later, covered companies pay a 10% digital advertising revenue tax. It applies only to companies with more than $1 billion in annual global gross revenue. Companies at or below that threshold are exempt. The taxable Rhode Island share uses devices accessing ads in Rhode Island compared with all devices accessing them.
Audited organizations must respond publicly
After each formal audit, the state audit office must report its scope, findings, and recommendations. Audited entities must respond within 20 calendar days after issuance of the draft copy for management response. Responses must address each recommendation, planned fixes, the responsible party, completion dates, and any disagreements. The office may follow up on corrective actions. Final reports and responses must be posted online and sent to House and Senate finance committee chairs.
Cannabis oversight shifts to state commission
After the Cannabis Control Commission issues its final rules, specified cannabis oversight powers transfer from existing state regulators. The commission receives those regulatory, administrative, and enforcement powers, or assigns them to the cannabis office. This transfer does not itself change household eligibility, prices, or duties.
Cities must update local road records
The state transportation department must create a database of municipal roads. Records must include each road's name, condition, length, infrastructure, and pedestrian features. Cities and towns must update the information every year.
Firearm dealers gain duties and permissions
Federally licensed dealers receiving grandfathered assault weapons from owners must prepare transfer certificates. Copies go to the state police superintendent and attorney general, and dealers must retain owners' possession certificates with transfer records. Dealers may handle and transport these weapons as authorized, accept them for repairs, and sell or transfer them outside Rhode Island. These rules took effect upon passage.
Large state offices face energy standards
Departments must track monthly energy use by source at state-owned, state-occupied office buildings of at least 25,000 gross square feet. Annual submissions begin March 31, 2026; the energy office must publish energy and emissions data within 180 days of each deadline. Using data due March 31, 2027, the office must publish performance standards by March 31, 2028, with compliance scheduled through 2050. It must publish compliance reports and corrective-action plans for buildings that fall short. The state climate council may exempt buildings where reductions are economically infeasible or unique physical or operating limits apply. Departments must develop reporting or standards methods with the energy office for covered campus buildings using central plants without separate meters.
State agencies link data with safeguards
The law establishes the Rhode Island Integrated Data System, also called DATA RI, to link individual, family, and other program records. One board governs the existing longitudinal data system and the health and human services data system, called the Ecosystem. Agencies must identify useful datasets and participate and share data as far as practical and legally allowed; recurring participation by unlisted agencies requires an agreement. For covered projects, the center or Ecosystem acts as the sharing agency's authorized agent, and transfers are not treated as disclosures or releases under laws governing the information. Data use must follow state and federal privacy laws and board policies, including approval of research requests. The system supports secure access, approved research, and aggregate public reports.
State fraud investigators gain stronger powers
The state audit and program integrity office gains broader oversight of fraud, waste, abuse, and mismanagement involving public money and purchasing. It may investigate reported public assistance fraud, including SNAP and Medicaid, coordinate investigations, and pursue recovery, including civil proceedings. The tax administrator may share tax records when necessary to detect or prevent state or federal program fraud. With the administration director's written approval, the audit chief may subpoena testimony and records relevant to an active fraud investigation. Recipients may challenge a subpoena in Superior Court within 20 days after service or before its return date, whichever is sooner. The office or attorney general may seek court-ordered compliance; evidence not used in court must be destroyed as soon as practicable.
Paint fees end as stewardship closes
The law ends paint stewardship assessment collections beginning August 1, 2025, and repeals the program on January 1, 2026. The program organization must submit a wind-down plan by September 30, 2025, including an independent financial audit as of August 1. Implementation begins after department approval. Remaining funds must go to the Rhode Island Resource Recovery Corporation by December 31, 2025. That money supports public education about the closure and safe paint disposal.
Health applicants gain flexibility, appeals narrow
Approved health projects have two years to begin development, up from one year. Applicants no longer need prior approval to exceed the approved maximum capital spending amount. Application fees become nonrefundable once formal review starts. The law removes the chapter’s general appeal process for affected people who are not applicants. Applicants keep the stated appeal route for Health Department decisions.
Health project reviews change their focus
The Health Department can speed reviews for documented emergencies, fire or safety hazards, reimbursement-linked accreditation needs, and purposes set by regulation. A conflict with the state health plan no longer bars expedited approval. Services offered out of state or rarely in Rhode Island lose their required expedited review. Inpatient reviews still address existing facilities, capital and operating costs, possible patient charges, efficiency, and suitability. Required findings on alternatives, patient problems without the service, and coordination of certain long-term-care bed additions are removed.
Health projects face access and affordability reviews
Applicants for new institutional health services or equipment must demonstrate need, and the Health Department must find proposals affordable and accessible. The Health Services Council may weigh affordability, access, innovation, and quality under department rules; approvals may carry conditions promoting those goals. Recognized affected participants include applicants, medical and osteopathic societies, specified nonprofit planning agencies, Rhode Island hospital or medical-service corporations, and the public served. The law removes healthcare facilities, the state budget office, health insurance commissioner, statewide health coordinating council, and neighboring health-systems agencies from the listed categories.
Cannabis cases can use hearing officers
The Cannabis Control Commission can appoint a hearing officer to hear contested cases and recommend decisions. The officer must follow the state administrative procedure law. A majority of commissioners must still approve formal matters, but a majority no longer must hear them.
More restricted funds support general spending
Beginning January 1, 2025, covered restricted accounts transfer 15% of cash receipts to the General Fund, up from 10%. The law adds an exemption for the Clean Transportation Programs account. Existing exemptions cover legally barred transfers, charitable-only receipts, federal grant indirect-cost assessments, state-agency debt-service transfers, and other listed accounts.
Pawtucket redevelopment taxes fund district projects
Beginning July 1, 2025, covered Pawtucket downtown redevelopment tax receipts are dedicated to district purposes for the year ending June 30, 2026. All covered receipts fund bond debt service and reserves, infrastructure improvements, future bond payments, and the redevelopment revolving fund. This provision states no dollar total and sets no household tax rate.
Health projects face changing review costs
For certificate-of-need review, covered physical improvements and property purchases count as capital expenditures when they exceed $50 million. Electronic health and management information systems are excluded. Beginning July 1, 2026, the threshold rises each July with the CPI-U increase measured through the prior September 30. Separately, applicants can be charged up to $50,000 for department experts or consultants, up from $20,000. That cap rises annually with the latest federal Consumer Price Index increase; the director determines each applicant's responsibility.
Hospital aid expands with payment limits
More hospitals qualify for Medicaid uncompensated-care aid as exclusions for nongovernment hospitals and non-short-term care are removed. Hospitals must still meet licensing rules, have at least 1% Medicaid inpatient use in the base year, and remain licensed. Payment calculations use updated base years: October 2022–September 2023 for fiscal years ending after September 30, 2023; October 2023–September 2024 for those ending after September 30, 2024. Calculations subtract estimated current-year state-directed hospital payments from charity-care and Medicaid shortfall costs. The index is 5.30% for the payment year ending September 30, 2026. Federal fiscal year 2026 payments are capped at $13.9 million: $12.9 million for Pool C and $1 million for Pool D. Pools are divided by hospitals' shares of indexed base-year uncompensated costs; required federal approvals are due June 23, 2026, and payments June 30, 2026.
University funding and purchasing limits change
For the year ending June 30, 2026, state capital plan funds can cover at most 80% of a University of Rhode Island project. The law does not name the source of the remaining money. University small-purchase limits are $50,000 for construction and $10,000 for other purchases, regardless of funding source. The board can raise those limits annually by regulation to reflect federal Consumer Price Index increases since the last adjustment. Small purchases must follow board regulations.
University trustees take over employment authority
The University of Rhode Island Board of Trustees becomes the university's employer of record. It controls faculty and staff employment, presidential appointment and annual review, employee-benefit agreements, and collective bargaining agreements. Labor agreements in effect when the board is established transfer to it. This change does not itself set new pay or benefits.
Jobs Growth closes but drops tax
For tax years beginning on or after January 1, 2026, the Jobs Growth Act allows no further tax adjustments or certifications. Taxpayers certified before January 1, 2026, no longer pay that chapter's tax for those years. The law does not state the tax savings.
Sponsors & Cosponsors
Sponsor
Marvin L. Abney
Democratic • House
Cosponsors
There are no cosponsors for this bill.
Roll Call Votes
House vote • 6/17/2025
ARTICLE 7 PASSAGE AS AMENDED
Yes: 75 • No: 0
House vote • 6/17/2025
ARTICLE 2 PASSAGE AS AMENDED PASSAGE OF AMENDMENT
Yes: 13 • No: 60
House vote • 6/17/2025
ARTICLE 3 PASSAGE AS AMENDED PASSAGE OF AMENDMENT
Yes: 19 • No: 53
House vote • 6/17/2025
ARTICLE 3 PASSAGE AS AMENDED
Yes: 75 • No: 0
House vote • 6/17/2025
ARTICLE 4 PASSAGE PASSAGE OF AMENDMENT
Yes: 73 • No: 0
House vote • 6/17/2025
ARTICLE 4 PASSAGE AS AMENDED
Yes: 75 • No: 0
House vote • 6/17/2025
ARTICLE 5 PASSAGE PASSAGE OF AMENDMENT
Yes: 74 • No: 0
House vote • 6/17/2025
ARTICLE 5 PASSAGE AS AMENDED PASSAGE OF AMENDMENT
Yes: 16 • No: 57
House vote • 6/17/2025
ARTICLE 5 PASSAGE AS AMENDED
Yes: 57 • No: 17
House vote • 6/17/2025
ARTICLE 6 PASSAGE PASSAGE OF AMENDMENT
Yes: 71 • No: 0
House vote • 6/17/2025
ARTICLE 6 PASSAGE AS AMENDED
Yes: 74 • No: 1
House vote • 6/17/2025
ARTICLE 7 PASSAGE PASSAGE OF AMENDMENT
Yes: 71 • No: 0
House vote • 6/17/2025
ARTICLE 7 PASSAGE AS AMENDED PASSAGE OF AMENDMENT
Yes: 16 • No: 57
House vote • 6/17/2025
ARTICLE 2 PASSAGE PASSAGE OF AMENDMENT
Yes: 73 • No: 0
House vote • 6/17/2025
ARTICLE 2 PASSAGE AS AMENDED PASSAGE OF AMENDMENT
Yes: 17 • No: 56
House vote • 6/17/2025
ARTICLE 2 PASSAGE AS AMENDED
Yes: 75 • No: 0
House vote • 6/17/2025
ARTICLE 3 PASSAGE PASSAGE OF AMENDMENT
Yes: 74 • No: 0
House vote • 6/17/2025
ARTICLE 8 PASSAGE PASSAGE OF AMENDMENT
Yes: 72 • No: 0
House vote • 6/17/2025
ARTICLE 8 PASSAGE AS AMENDED
Yes: 74 • No: 0
House vote • 6/17/2025
ARTICLE 9 PASSAGE PASSAGE OF AMENDMENT
Yes: 73 • No: 0
House vote • 6/17/2025
ARTICLE 9 PASSAGE AS AMENDED
Yes: 65 • No: 10
House vote • 6/17/2025
ARTICLE 10 PASSAGE PASSAGE OF AMENDMENT
Yes: 13 • No: 60
House vote • 6/17/2025
ARTICLE 10 PASSAGE
Yes: 75 • No: 0
House vote • 6/17/2025
ARTICLE 11 PASSAGE PASSAGE OF AMENDMENT
Yes: 70 • No: 1
House vote • 6/17/2025
ARTICLE 11 PASSAGE AS AMENDED
Yes: 61 • No: 13
House vote • 6/17/2025
ARTICLE 12 PASSAGE
Yes: 74 • No: 0
House vote • 6/17/2025
ARTICLE 13 PASSAGE PASSAGE OF AMENDMENT
Yes: 72 • No: 0
House vote • 6/17/2025
ARTICLE 13 PASSAGE AS AMENDED
Yes: 74 • No: 0
House vote • 6/17/2025
ARTICLE 1 PASSAGE PASSAGE OF AMENDMENT
Yes: 73 • No: 0
House vote • 6/17/2025
ARTICLE 1 PASSAGE AS AMENDED PASSAGE OF AMENDMENT
Yes: 13 • No: 60
House vote • 6/17/2025
ARTICLE 1 PASSAGE AS AMENDED PASSAGE OF AMENDMENT
Yes: 12 • No: 59
House vote • 6/17/2025
ARTICLE 1 PASSAGE AS AMENDED PASSAGE OF AMENDMENT
Yes: 16 • No: 58
House vote • 6/17/2025
ARTICLE 1 PASSAGE AS AMENDED PASSAGE OF AMENDMENT
Yes: 4 • No: 70
House vote • 6/17/2025
ARTICLE 1 PASSAGE AS AMENDED
Yes: 64 • No: 11
House vote • 6/17/2025
ARTICLE 14 PASSAGE
Yes: 65 • No: 8
House vote • 6/17/2025
APP. F.Y ENDING JUNE 30, 2026 PASSAGE AS AMENDED
Yes: 66 • No: 9
Actions Timeline
Effective without Governor's signature — Chapter 278
6/29/2025GovernorTransmitted to Governor
6/21/2025GovernorSenate passed Sub A as amended in concurrence
6/20/2025SenatePlaced on Senate Calendar (06/20/2025)
6/18/2025SenateCommittee recommends passage of Sub A as amended in concurrence
6/18/2025Referred to Senate Finance
6/17/2025SenateHouse passed Sub A as amended (floor amendment)
6/17/2025HouseScheduled to be heard and /or considered in anticipation of House passage (06/18/2025)
6/16/2025HousePlaced on House Calendar (06/17/2025)
6/10/2025HouseCommittee recommends passage of Sub A
6/10/2025Scheduled for consideration
6/8/2025Scheduled for consideration (06/10/2025)
6/8/2025Introduced, referred to House Finance
1/16/2025House
Bill Text
H5076 - As Introduced
1/16/2025
H5076 - Substitute
1/16/2025
H5076 - Substitute As Amended
1/16/2025
Related Bills
H5187, AN ACT RELATING TO LABOR AND LABOR RELATIONS -- LABOR RELATIONS ACT .
H5155, AN ACT RELATING TO BUSINESSES AND PROFESSIONS -- ARCHITECTS .
H5120, AN ACT RELATING TO INSURANCE -- BENEFIT DETERMINATION AND UTILIZATION REVIEW ACT .
H5157, AN ACT RELATING TO MILITARY AFFAIRS AND DEFENSE -- EMERGENCY MANAGEMENT .
H5098, AN ACT RELATING TO AGRICULTURE AND FORESTRY -- FORESTRY AND FOREST PARITY ACT .
H5218, AN ACT RELATING TO INSURANCE -- ACCIDENT AND SICKNESS INSURANCE POLICIES .