Gov. McKee’s Proposed FY 27 Rhode Island Budget: What’s in It for Seniors

Published in RINewsToday on February 2, 2026

Gov. Dan McKee outlined key elements of his proposed $14.8 billion FY 2027 budget during his State of the State Address on Jan. 13, 2026. Two days later, his full budget, proposing a 3.6% increase over the previous fiscal year, was officially released via press release.

The budget centers on an “Affordability for All” agenda and a $600 million bond package, covering the fiscal period starting July 1, 2026. Key proposals include a new income tax tier for earnings over $1 million, a permanent child tax credit, a phased elimination of the state tax on Social Security benefits, repeal of a gas tax increase, and continued investments in projects that support jobs and economic growth.

The proposal also aims to shield vulnerable Rhode Islanders from potential federal cuts, including the elimination of Affordable Care Act subsidies, changes in Medicaid eligibility rules, reductions in federal support for hospitals treating uninsured patients, and modifications to SNAP regulations.

“My commitments to Rhode Islanders are clear: putting more money back in families’ pockets, protecting the most vulnerable from President Trump’s safety net cuts, and keeping Rhode Island building to support good-paying jobs and long-term economic growth,” McKee said in a statement accompanying his full budget.

While the Governor’s plan emphasizes affordability through higher incomes and improved healthcare outcomes, along with proposing a 3% tax on high earners, Jesse Martin, Executive Vice President of SEIU 1199NE, cautions, “The plan falls short of what’s needed to meet these goals. What’s more, the state’s recent minimum wage increase has actually reduced take-home pay for low-income home care workers and cut care hours for their vulnerable consumers. Rather than reducing care, the governor should offset these costs through increased federal Medicaid funding.” Martin co-represents over 5,000 health care and service workers in Rhode Island.

Budget Highlights for Older Adults  

For over a decade, the Rhode Island General Assembly has considered measures to gradually eliminate or reduce the state tax on Social Security benefits. This budget proposes phasing out this tax over the next three years. The full cost impact would be $60.1Million in FY 2030.

In AARP Rhode Island’s 2023 Vital Voices survey of Rhode Islanders 45+, 89% agreed that “Rhode Island lawmakers should repeal the state tax on Social Security,” said State Director Catherine Taylor in a newspaper editorial. “This sentiment is consistent regardless of age, gender, or political party,” she said.

Laura Hart, Gov. McKee’s Deputy Director of Communications, notes that senior services funding has grown under his leadership: “In FY21, the budget included $0.8 million for senior services. By FY26, that number had risen to $1.6 million. For FY27, the governor recommends $1.8 million—more than doubling the funding since he took office.”

Hart adds, “Rhode Island is only one of eight states that tax Social Security income. This tax can discourage retirees from staying in the state and contributing to the economy. Under the Governor’s proposal, the phase-out prioritizes 9,000–10,000 early retirees whose average income is $44K single/$75K joint—clearly not high-income earners—and who represent one-third of the population currently subject to the tax.”

Aging advocates continue to push for an increase in funding for local senior centers, aiming for allocations equivalent to $10 per resident age 65 and older.

Support for Nursing Homes and Affordable Housing

LeadingAge Connecticut & Rhode Island was pleased to see the Governor’s budget proposal include a 2.5% cost-of-living adjustment for nursing home rates, along with an initial rate increase equal to 50% of Rhode Island’s Office of the Health Insurance Commissioner’s biennial rate review recommendation for many Medicaid-funded home and community-based services,” says President Mag Morelli. “We understand this increase is intended as the first phase, with the remaining 50% anticipated next year,” she said.

Morelli also highlights the Administration’s focus on affordable housing, noting the growing need for accessible and affordable options for older adults. She urges further support for Medicaid-assisted living programs to sustain existing services and promote expansion, which she describes as a cost-effective option supporting independence and choice.

Kathleen Gerard of Advocates for Better Care in Rhode Island, a member of the Raise the Bar on Resident Care Coalition, emphasizes the importance of transparency and resources: “As our long-term care system faces increasingly complex pressures, transparency, accountability, and adequate resources are critical to protecting the health and safety of older adults and people with disabilities.”

She adds, “In addition to enforcing the Nursing Home Staffing and Quality Care Act, Raise the Bar is calling for a full Medicaid cost-of-living increase for nursing homes—above the 2.5% proposed by Governor McKee. We also urge new funding for the Ombudsman program, which has gone years without an increase despite its vital role in helping residents resolve care concerns. Finally, we support the Department of Health’s nursing home financial transparency bill to ensure owners are accountable for public funds.”

Other Provisions

The proposed budget also aims to maintain enhanced Affordable Care Act subsidies to keep coverage affordable for approximately 20,000 individuals. Without $9.5 million in state funding, an estimated 6,500 individuals could lose coverage.

The budget seeks to curb healthcare cost growth and increase drug-price transparency by authorizing the Office of the Health Insurance Commissioner to set enforceable annual cost-growth targets and requiring Pharmacy Benefit Managers to report detailed rebate, pricing, and fee data. These measures are designed to improve oversight, contain costs, and reduce drug prices for older Rhode Islanders.

McKee also proposes a $19.3 million investment in information technology, personnel, and resources to ensure Rhode Islanders can retain Medicaid and SNAP benefits under the federal reconciliation bill H.R. 1, while maximizing federal funding for these critical programs.

Additionally, the budget allocates $10 million to Rhode Island-based hospitals through the Disproportionate Share Hospitals payment to offset uncompensated care losses. Funding for social and human services providers is increased by $23 million in FY27, and state funds to combat food insecurity are doubled, raising support for the Rhode Island Community Food Bank from $1 million to $2 million. According to America’s Health Rankings, roughly 4.1% of Rhode Island adults aged 60 and older face food insecurity.

Securing Affordable Living for All Older Rhode Islanders

SACRI was pleased to see McKee put emphasis on affordability in his budget address and his expressed support for increasing taxes on higher-income residents to fund essential services, said SACRI Policy Advisor Maureen Maigret. When hammering out the FY2027 budget proposal, she urges the  House and Senate Finance Committees to allocate additional funding for programs and services that assist low- and moderate-income older adults from across the state facing economic challenges. The reality is that  one out of four older RI households have income less than $25,00 and almost half have income less than $50,000. Affordability measures must be aimed at putting money in the pockets of all older adults and not just those fortunate enough to have higher incomes, stated Maigret.

According to Maigret, SACRI has proposed and shared its 2026 Affordability Agenda for Older Adults for the Rhode Island General Assembly to consider as it develops and finalizes the state’s FY2027 state budget. The agenda tackles significant inequities in state programs and services, she noted, pointing out that Medicaid currently allows older adults and adults with disabilities to have only $4,000 in assets (for individuals) to remain eligible. This restriction is particularly unreasonable for those trying to live independently at home, especially since other Medicaid populations do not face such limits. What happens when the roof needs repairs or the hot water heater breaks,” she said.

Maigret stressed that keeping people at home and out of more expensive nursing homes can save the state money over time. She added that in 2025 with strong advocacy from SACRI, strides were made in expanding eligibility for the Medicare Savings Program (MSP), and as of February 1, individuals with incomes up to $2,255 per month are eligible—provided their assets are below $9,660.

SACRI advocates joining at least 12 other states in removing Rhode Island’s MSP asset limitation so that hundreds more Medicare recipients could have their $202.90 monthly Part B premium covered by the federal government. The savings would flow back into the state economy as recipients use the funds for basic needs.

SACRI supports the Governor’s proposed child care tax credit and also advocates for a similar credit for the hundreds of unpaid caregivers providing at-home care for older loved ones, often at significant financial sacrifice.

“We also strongly support Rep. Karen Azalter’s (D-Dist. 60, Pawtucket, Central Falls) and Senator Melissa Murray’s legislation (D-Dist. 24, Woonsocket, North Smithfield) legislative proposals  (H7313 and S2238) to create a 3% surcharge on the top 1% of income earners. The projected revenue of more than $200 million would help offset the modest costs of the proposals in our agenda, as well as other programs affected by federal changes,” Maigret said.

Next Steps

“The submission of the budget by Governor McKee signals the start of the months-long budget process,” says House Speaker K. Joseph Shekarchi (D-Dist. 23, Warwick). The House and Senate Finance Committees will hold dozens of public hearings, all televised by Capitol TV, to scrutinize every aspect of the budget.

Shekarchi adds, “We welcome all interested parties to testify at the State House. Once the hearings are completed, the House, Senate, and Governor will work together to finalize the budget in late May for adoption in June. Once enacted, it will go into effect on July 1.”

To view Governor McKee’s full budget submission, visit: https://omb.ri.gov/budget-office/fy-2027-governors-budget.

National Family Caregivers Month: State-by-State Roadmap on Assisting Caregivers

Published in RINewsToday on November 3, 2025

Over three months ago, AARP and the National Alliance for Caregiving (NAC) released Caregiving in the US. 2025, warning of a major crisis facing America’s 63 million caregivers. The 133-page report, released on July 23, noted a 45% increase in the number of caregivers over the past decade and concluded that caregivers are at a “crisis point.”

The first Caregiving in the US report, released in 1997 by AARP and NAC, is widely regarded as one of the most authoritative data sources on family caregiving in America. Subsequent editions followed in 2004, 2009, 2015, 2020, and now 2025—each providing updated information on caregiver demographics and the evolving realities of caregiving in America.

A First-of-its-Kind State-by-State Data Analysis

Building on the national Caregiving in the US 2025 report, AARP and NAC recently unveiled a first-of-its-kind state-by-state caregiving data analysis. The 248-page report reveals how much local factors—down to your community or ZIP code—shape the caregiving experience, exposing deep financial and emotional challenges confronting millions of family caregivers.

Researchers found that state policy choices make a measurable difference: states offering stronger supports such as paid leave, respite care, and health system integration report far better outcomes for caregivers.

Rhode Island was among 19 states without sufficient sample sizes to support detailed analysis beyond prevalence and the estimated number of caregivers. For these states, only those metrics were included.

According to AARP and NAC, the report identifies a consistent pattern: states with the highest caregiving prevalence often have the fewest supports. Geography, policy, and community resources together determine whether families can manage care—or collapse under its weight.

The takeaway: where you live often determines whether you get relief or reach a breaking point.

With 63 million family caregivers nationwide—nearly one in four adults—the report underscores the urgent need for coordinated policy solutions at both the federal and state levels.

“Caregivers are the invisible backbone of our broken long-term care system and economy, and too many are paying the price out of their own pockets—risking financial security by taking on debt, using up savings, and leaving bills unpaid,” said Nancy LeaMond, AARP’s Executive Vice President and Chief Advocacy & Engagement Officer, in an Oct. 28 statement announcing the report. “This new data offers the clearest picture yet of America’s caregivers and a roadmap for the change they urgently need.”

AARP is urging Congress and state legislatures to adopt commonsense policies that help caregivers save time and money—and get the support they need.

“These state-by-state disparities expose how policy choices determine whether families thrive or collapse under caregiving responsibilities,” said Jason Resendez, President and CEO of NAC. “When financial strain hits 59% of family caregivers in Georgia compared to just 34% in Minnesota—meaning where you live can double your risk of economic hardship—it’s clear that patchwork state solutions aren’t enough.”

Rhode Island Specifics

Ahead of National Family Caregivers Month, AARP Rhode Island released its state-level caregiving data. The findings show that 23%—approximately 206,000 Rhode Island adults—provide largely unpaid care to parents, older spouses, and other loved ones. The data underscores the urgent need for legislative action to better support these caregivers.

“When a loved one needs help, family members, friends, and neighbors step up—that’s what we do,” said Catherine Taylor, AARP Rhode Island State Director. “But too often, caregivers carry this responsibility alone, putting their finances, health, and jobs at risk. As our state ages, the demand for care will only grow. With this new data and ahead of the 2026 legislative session, AARP Rhode Island is urging policymakers at every level to act now.”

AARP Rhode Island estimates that family caregivers provide $2.1 billion in unpaid care each year, enabling loved ones to remain at home and in their communities—where they want to be. Caregivers routinely handle a wide range of tasks, from bathing and meal preparation to managing medications and medical procedures, often without formal training.

Key Rhode Island caregiving statistics:

·         99% assist with instrumental activities of daily living (meal prep, administering medicine, managing finances)

·         65% assist with personal care (bathing, dressing, feeding)

·         55% perform medical or nursing tasks

·         40% provide high-intensity caregiving (many hours and complex care)

·         19% deliver at least 40 hours of care per week

The personal toll is significant:

·         80% of caregivers use their own money to meet their loved ones’ needs—averaging $7,200 annually, or 25% of their income

·         44% report financial setbacks, including debt, depleted savings, or difficulty affording food and medicine

·         70% juggle full or part-time jobs, with many reducing hours or leaving the workforce—jeopardizing their long-term financial security

A Call to Action

A dysfunctional Congress and state legislatures must directly confront the skyrocketing number of caregivers in America.

AARP and NAC along with the Alzheimer’s Association are calling on policymakers to strengthen financial supports—starting with federal legislation such as the Credit for Caring Act, which would provide a tax credit of up to $5,000 for working caregivers, and the Lowering Costs for Caregivers Act, which would expand flexible spending and health savings account uses.

States can also act by ensuring Medicaid home- and community-based care options are accessible, allowing caregivers to earn compensation, integrating caregiver recognition and training into the health care system, and adopting best practices from top-performing states.

In Rhode Island, advocacy groups including AARP, the Senior Agenda Coalition of RI (SACRI), and the Alzheimer’s Association Rhode Island Chapter have made significant progress. Rhode Island’s Temporary Caregiver Insurance (TCI) program—now offering eight weeks of paid leave at 75% wage replacement—helps family caregivers maintain income stability while providing care.

“In continuing our ongoing advocacy on behalf of caregivers, during the 2026 Rhode Island General Assembly session SACRI will prioritize legislation introduced last year — the creation of a state caregiver tax credit and advocate for the inclusion of respite services for adults under the Medicaid program,” notes Maureen MaigretSACRI Policy Advisor.

Maigret points out that a 2021 AARP study found the average caregiver spends $7,242 out of pocket each year caring for a loved one. “It’s a huge financial burden for many caregivers, especially as the cost of living continues to rise and 40% of caregivers report household incomes of $50,000 or less,” she says, referencing the 2021 Rhode Island Behavioral Risk Factor Survey. “A recent state survey also found that short-term respite is one of the most commonly requested services that caregivers say would help support their needs.”

“Supporting caregivers is not just compassionate—it’s smart policy. In 2024, Rhode Island spent $614 million in Medicaid costs related to dementia. By strengthening caregiver supports—like respite services, dementia-specific training, and care navigation—we can help families keep loved ones at home safely for longer and avoid more costly levels of care,” says Donna McGowan, Executive Director, Alzheimer’s Association Rhode Island Chapter.

“Thoughtful policy and targeted funding is not only the right thing to do—it’s a wise investment in the health and future of our state,” notes McGowan.

To get a copy of Caregiving in the US 2025 go to https://www.aarp.org/pri/topics/ltss/family-caregiving/caregiving-in-the-us-2025/

To get a copy of Caregiving in the US 2025: Caring Across the States, go to https://www.aarp.org/pri/topics/ltss/family-caregiving/caregiving-in-the-us-2025-caring-across-states/

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To access free caregiver tools and local resource guides, visit:

·         AARP Rhode Island “Guide for Caring for Older Adults in Rhode Island helps family caregivers access key programs, services, and agencies right in their community.

·         AARP’s online Caregiving Hub has tools and information available in English and Spanish.

·         AARP and United Way Worldwide’ s 211 program connects Rhode Island family caregivers to essential local services for themselves and their loved ones via the 211 helpline.

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