Tag Archives for Senator Melissa Murray

New Laws Benefiting Older Rhode Islanders from this Legislative Session

Published in RINewsToday on July 20, 2026

A new group of bills, signed by Gov. Dan McKee, delivers notable benefits for older Rhode Islanders. The new laws focus on three main goals: boosting financial security, expanding healthcare access, and cracking down on fraud and scams targeting seniors.

Rhode Island General Assembly leadership convened this year’s legislative session on Jan. 6 that ran until June 11, with lawmakers working right up until 11:59 a.m. on their final day. Over those five months, the Senate logged 43 days on the floor, while the House logged 45.

In a joint statement, Senate President Valarie J. Lawson (D-Dist.14, East Providence) and House Speaker Christopher R. Blazejewski (D-Dist. 2, Providence) pointed out one of the session’s most significant legislative accomplishments – eliminating the state income tax on Social Security benefits for all low- and moderate-income Rhode Islanders who receive them, regardless of their age.

“We also strengthened protections against scams and financial exploitation, advanced consumer protections, and passed legislation to improve access to affordable, high-quality health care,” they said, stressing that more work remains.

“As we continue to prepare for the impacts of federal funding cuts to vital state programs like Medicaid and the Supplemental Nutrition Assistance Program (SNAP), we must remain vigilant in protecting the services that many older Rhode Islanders depend on,” they added. “We remain committed to working with our partners to address the many challenges facing older Rhode Islanders and to advancing policies that protect their financial security, support healthy aging, and enhance the quality of life for every senior in our state.”

A Strong Year for Aging Issues

More than 2,450 bills were introduced during the 2026 legislative session – 1,157 in the Senate and 1,297 in the House. Excluding resolutions, which were largely congratulatory in nature or recognized prominent Rhode Island residents, only 249 measures ultimately cleared both chambers to reach the Governor’s desk for signature.

Among the most important actions affecting Rhode Islanders was the adoption of the state’s $15.2 billion Fiscal Year 2027 budget. The new spending plan includes a number of provisions benefiting older adults, caregivers, and aging-service providers. It eliminates age thresholds to exempt Social Security income from state taxes, increases Medicaid reimbursement rates for dementia care and other providers, and boosts funding for Meals on Wheels and senior centers.

But the enacted budget was only part of this year’s legislative story. Lawmakers also approved a number of bills that Gov. Dan McKee signed into law, addressing health care, consumer protection, retirement security, and services that help older Rhode Islanders remain independent in their homes and communities.

Among the new laws signed by Gov. McKee are the following:

The General Assembly approved legislation (S 3282, H 8595) sponsored by Senate President Lawson and Rep. Michelle McGaw (D-Dist. 71, Portsmouth, Tiverton, Little Compton) to ensure that Medicare patients over 65 years old are eligible for all Medicare supplemental coverage programs, regardless of preexisting conditions. Under the new law, every Medicare recipient over 65 will have at least one month each calendar year to enroll in any Medigap plan without undergoing medical underwriting. That means older adults cannot be denied coverage – or charged higher premiums because of preexisting conditions if they switch plans during that enrollment period.

Rep. Jennifer Boylan (D-Dist. 66, Barrington, East Providence) and Sen. Lori Urso (D-Dist. 8, Pawtucket) sponsored successful legislation (H 7029A, S 2116A) to help homebound patients access routine foot care at home. The new law allows routine foot care in patients’ homes, provided the provider has received proper training and demonstrates clinical competence. The new measure addresses unmet needs for basic, routine, and preventive foot care at home. Many older adults and people with disabilities need medical assistance for routine foot care, including noninvasive maintenance of toenails, common corns, and calluses.

Legislation (S 2026, H 8171A) from Sen. Victoria Gu (D-Dist. 38, Westerly, Charlestown, South Kingstown) and Rep. Justine Caldwell (D-Dist. 30, East Greenwich, West Greenwich), now law, creates a Medicaid pilot program that leverages medically tailored meals and other nutritional supports to improve the health of those with chronic, diet-related conditions. This coverage could take the form of produce prescriptions, vouchers, or medically tailored meals, prescribed by medical professionals for persons with diet-related diseases or food insecurity. It could also include clinical nutrition education.

Legislation (H 8060A, S 3338) introduced by Rep. Joseph J. Solomon, Jr. (D-Dist. 22, Warwick) and Sen. Matthew L. LaMountain (D-Dist. 31, Warwick, Cranston), now enacted, strengthens the state’s laws to fight identity fraud and emerging forms of digital deception. The act defines “digital forgery” as participating in the generation, creation, or distribution of a computer-generated visual or audio representation intended to deceive people.

Gov. McKee signed legislation (H 7613A, S 2810A) sponsored by Rep. Alex D. Marszalkowski (D-Dist. 52, Cumberland) and Sen. Lammis Vargas (D-Dist. 28, Cranston, Providence) that would protect tax filers from fraudulent or illegal tax preparation services. This new law imposes penalties on tax preparers who intentionally mislead their clients or act as ghost preparers for tax returns. It would also require the tax administrator to publish a list of tax preparers whose privileges to prepare returns have been revoked or suspended.

The Act (H 7551aa, S 2715A) introduced by House Speaker Pro Tempore Brian Patrick Kennedy (D-Dist. 38, Hopkinton, Westerly) and Senate President Lawson would criminalize deed theft. Additionally, it would allow municipalities to refuse to record “suspicious documents” submitted by untrusted submitters. Deed theft usually involves forged documents, such as a quit-claim deed, to record a phony transfer of property ownership. Scammers may then attempt to sell the stolen vacant land or home, or even rent it, to turn a profit, forcing the real owners to head to court to reclaim their property.

The enacted measure (H 7837, S 2878) sponsored by Rep. Caldwell and Senate President Pro Tempore Hanna M. Gallo (D-Dist. 27, Cranston, West Warwick) would improve the oral health of homebound older Rhode Islanders by expanding reimbursement eligibility for public health dental hygienists. Currently, dental hygienists’ services are reimbursable only through Medicaid and insurance plans purchased through HealthSource RI. The new law allows public health dental hygienists to be paid directly by Medicare and other insurers for services provided in the home to older adults who lack transportation or mobility to visit a dentist.

This enacted legislation (H 7475, S 3086), sponsored by Rep. Evan P. Shanley (D-Dist. 24, Warwick, East Greenwich) and Sen. Meghan E. Kallman (D-Dist. 15, Pawtucket, Providence), enacts technical amendments to the Rhode Island Secure Choice Retirement Savings Program Act. These structural modifications, which improve daily operations enable the retirement board to enhance the program’s efficiency and reach and strengthen interstate partnerships. Secure Choice, which offers employees of small businesses access to a portable, Roth-IRA-type retirement accounts through automatic payroll deduction, was enacted last year.

We’ll Be Back

According to Carol Costa, Executive Director of the Senior Agenda Coalition of RI (SACRI), this year’s General Assembly approved several important measures supporting aging in place, including bills on foot care and dental hygienists. She also believes the Food as Medicine legislation will have a tremendous impact on homebound older Rhode Islanders.

Costa noted that consumer protection bills which were signed into law are also laudable, including the enacted bill (H 8106, S 2644), that was introduced by Rep. Stephen M. Casey (D-Dist. 50, Woonsocket) and Sens. Melissa Murray (D-Dist. 24, Woonsocket, North Smithfield) and Brian J. Thompson (D-Dist. 20, Woonsocket, Cumberland) restricting deed covenants on grocery stores addressing anti-competitive deed restrictions. The bills were originally created and pushed forward at the request of Rhode Island Lt. Gov. Sabina Matos as part of her “Fair Price Grocery Agenda”.

SACRI applauds the enactment of legislation (H 7020, S 3180) sponsored by Rep. Jon D. Brien (I-Dist. 49, Woonsocket, North Smithfield) and Sen. Thompson that establishes the framework for veterinary telemedicine in Rhode Island. “It is a good law to help homebound older Rhode Islanders to take better care of their pets,” Costa says. The new law requires Rhode Island-licensed veterinarians to obtain client consent before establishing an electronic relationship and to keep records for one year. Providers must clearly display services and standard fees on their websites.

Workforce development also got a boost this year with passage of the Healthcare Worker Platform Act (H 7030B, S 2107A), says Costa. Sponsored by Rep. Shanley and Sen. Jacob E. Bissaillon (D-Dist. 1, Providence), the new law creates a digital platform that connects qualified healthcare workers with open shifts at healthcare facilities. The platform allows licensed healthcare professionals to identify and accept available shifts, helping healthcare providers fill staffing gaps more quickly and efficiently. “Creating a workforce platform is a positive step that enables quicker access to long-term care staffing,” says Costa.

“SACRI will be supporting bills that did not get over the finish line this session by pushing them on day one,” says Costa, noting that in the next session, the coalition will push for the passage of the removal of the MSP Asset test, the creation of the Office of the Elder Advocate, and making the Rep. Lauren H. Carson’s (D-Dist. 75, Newport) House Study Commission on Aging or House Commission Studying Services and Programs for Older Adults a permanent commission.

“SACRI is reflecting on a year of dedicated advocacy while turning its focus to the work ahead,” explains Costa. “While some major legislative priorities did not make it across the finish line this year, we remain committed to dismantling barriers for Rhode Island’s older adults and individuals with disabilities,” she says.

“While SACRI didn’t secure 100% of all we fought for this past session, our resolve is stronger than ever to push for passage in the General Assembly,” says Costa, stressing that the legislation is vital to the economic security and protection of our older adults. “SACRI will be there to advocate forcefully until they become law,” she said.

For more information about the states’ Fiscal Year 2027 budget, see my article in RI News Today. Go to https://rinewstoday.com/ri-budget-win-for-older-adults-by-herb-weiss.

Read about AARP Rhode Island’s advocacy on bills that were signed into law this legislative session. Go to

https://www.aarp.org/states/rhode-island/rhode-island-2026-legislative-win

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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.

Senior Agenda Coalition of RI pushes wealth tax to fund programs for older residents

Published in RINewsToday on June 2, 2025

With the recent passage of the House Republican budget—which cuts some programs and services for seniors, veterans, people with disabilities, and families with children—Sulma Arias, Executive Director of Chicago-based People’s Action (PA), is calling on billionaires and large corporations to finally pay their fair share of taxes.

Senator Bernie Sanders has echoed similar sentiments on the national stage, urging lawmakers to ensure that ultra-wealthy individuals and powerful corporations contribute more equitably to the nation’s economic well-being, rather than shifting the burden to everyday Americans by cutting essential services.

In Rhode Island, Democratic lawmakers are advancing legislation this session that would increase taxes on the state’s highest earners to generate vital revenue for public programs and services.

Proposed Legislation Targets Top Earners

HB 5473, introduced on February 12, 2025, by Rep. Karen Alzate (D-Dist. 60, Pawtucket, Central Falls), was referred to the House Finance Committee. The bill proposes a 3% surtax on taxable income above $625,000—on top of the existing 5.99% rate—targeting the top 1% of Rhode Island tax filers. The surtax is projected to raise approximately $190 million annually and would affect about 5,700 of the state’s more than 500,000 filers. If enacted, the tax would apply to income earned in tax years beginning in 2026 and would not be retroactive.

As of the May 6 House Finance Committee hearing, about 140 pieces of written testimony had been submitted on HB 5473. The committee held the bill for further study, with no additional action yet taken. The proposal remains under consideration as part of ongoing budget negotiations.

A companion bill, S. 329, was introduced in the Senate by Sen. Melissa Murray (D-Dist. 24, Woonsocket, North Smithfield) and referred to the Senate Finance Committee. A hearing on the measure was held last Thursday, and the bill was also held for further study.

As the volume of testimony indicates, the battle lines are clearly drawn. Progressive groups and unions support the legislation, while businesses and business organizations, such as the Greater Providence Chamber of Commerce and the Northern Rhode Island Chamber of Commerce, have voiced strong opposition. Governor Dan McKee has not yet taken a public position on the bills.

The Pros and Cons

Supporters argue that with Rhode Island facing a $220 million budget deficit, HB 5473 and S. 329 could raise nearly $190 million annually to fund critical services, including: K-12 and higher education; health care; housing; public transportation; affordable child care; infrastructure, and programs for older adults

They contend that the proposals would bolster the state’s safety net, particularly in light of uncertain federal funding. A more progressive tax structure, they argue, would make the system fairer by reducing the burden on middle- and lower-income residents. Currently, the top 1% of Rhode Island taxpayers control a disproportionate share of the state’s wealth but, when accounting for sales and property taxes, pay a smaller share of their income than lower-income households.

Opponents, however, warn of unintended consequences. They claim the bills would drive wealthy residents and businesses out of the state, eroding the tax base.Supporters dispute this, pointing to IRS and Stanford University studies indicating that wealthy individuals typically relocate for family or climate-related reasons—not for tax considerations. States like California and New Jersey, they note, have implemented similar surtaxes without experiencing significant outmigration.

Morally, proponents argue, those with more resources have a responsibility to help those with less—especially in a post-COVID era when many low-income families continue to struggle.

Yet critics, including the Rhode Island Public Expenditure Council (RIPEC) along with the Greater Providence Chamber of Commerce, Northern Rhode Island Chamber of Commerce and businesses, warn that such a tax could signal to entrepreneurs and investors that Rhode Island is “business unfriendly.” They contend that higher income taxes might discourage business investment and hiring, harming the state’s long-term economic prospects.

Some opponents cite Connecticut’s experience in the early 2010s, when a handful of wealthy taxpayers reportedly relocated after tax hikes, resulting in noticeable revenue loss. Given that a small number of high earners contribute a significant share of state income tax revenue, even limited outmigration could have an outsized fiscal impact, critics argue.

Skeptics also question whether new revenue will be reliably dedicated to education, infrastructure, and social programs. They point out that in the past, even funds placed in restricted accounts were sometimes redirected to fill budget shortfalls.

Aging Programs and Services at a Crossroads

“Rhode Island stands at a crossroads,” warns Carol Anne Costa, Executive Director of the Senior Agenda Coalition of Rhode Island (SACRI). With a projected $220 million deficit and potential federal cuts to programs such as Medicaid, SNAP, and services provided by the Office of Healthy Aging, Costa insists that passing HB 5473 and S. 329 is essential to preserve and expand supports for older adults and people with disabilities.

“Most of our state’s older residents are not wealthy,” Costa notes, citing Census data showing that one in four older households earns less than $25,000 annually, and 45% earn less than $50,000. Only about 8% of older households earn more than $200,000.

In FY 2023, 27,535 Rhode Islanders aged 65 and older were enrolled in Medicaid, which funds the majority of long-term services not covered by Medicare. In addition, 14% of older adults in the state relied on SNAP benefits to help cover food costs.

Costa argues that revenue from the proposed surtax could ensure continued funding for these essential programs and expand the Medicare Savings Program. Such an expansion could save low-income seniors and adults with disabilities up to $185 per month in Medicare Part B premiums—money they need for food, housing, and transportation.

While critics warn of wealthy residents fleeing Rhode Island if taxes increase, Costa cites a comprehensive report by the Economic Progress Institute refuting this claim. “In fact, the data suggests the opposite,” she says. “Higher-income tax filers are moving into Rhode Island more than they are leaving.”

Costa also points to Massachusetts as a real-world example. After voters approved a 4% surtax on income over $1 million in 2022, the number of Massachusetts residents with a net worth over $1 million increased from 441,610 to 612,109 by 2024, according to an April report from the Institute for Policy Studies and the State Revenue Alliance.

Business Community Pushes Back

At the House Finance Committee hearing, Laurie White, President of the Greater Providence Chamber of Commerce, voiced strong opposition to the proposed tax.

“Our views reflect those of thousands of local businesses statewide,” she said. “Rhode Island is already in fierce competition with neighboring states to attract and retain businesses, residents, and talent.”

White warned that the surtax would send the wrong message, particularly as Rhode Island invests in high-wage sectors like life sciences and technology. “Tax burden is a key factor in business decisions, and an increase in personal income tax would significantly reduce Rhode Island’s appeal,” she stated.

House GOP Minority Leader Michael W. Chippendale (R-Dist. 40, Coventry, Foster, Gloucester) echoed White’s sentiments: “Taxing people who have worked hard and become prosperous is an insult to the American dream. We shouldn’t be punishing success—we should be creating an economic environment where everyone can thrive. Driving away high-income residents with more taxes is backward thinking.”

Chief of Staff Sue Stenhouse confirmed that the entire 10-member House Republican caucus stands united in opposition to the surtax.

The Washington, DC-based Tax Foundation also weighed in. In written testimony on S. 329, Senior Policy & Research Manager Katherine Loughead stated that if the surtax were enacted, Rhode Island would move from having the 14th-highest to the 8th-highest top marginal state income tax rate in the nation—excluding the District of Columbia. She warned that this could make Rhode Island less attractive to high-income earners than even Massachusetts.

So What’s Next?

Costa maintains that taxing the wealthiest residents may be both a necessary and viable solution to protect the state’s safety net amid budget shortfalls and looming federal cuts.

However, with HB 5473 and S. 329 still being held for further study, it remains unclear whether they will be included in the final state budget.

“As we approach the final weeks of the session, there is no shortage of meritorious proposals that affect state resources,” said House Speaker Joseph Shekarchi (D-Dist. 23, Warwick). “The uncertainty of the federal funding picture and the numerous holes in the Governor’s proposed budget complicate both balancing this year’s budget and planning for the unknown. I continue to keep many options on the table for this challenging task.”

Stay tuned—SACRI and other aging advocacy groups are watching closely to see what options will be considered by the House Speaker when he releases FY 2026 state budget to address funding for programs and services that support Rhode Island’s growing older population in this difficult fiscal year.

To read submitted emails and testimony on S. 329, go to https://www.rilegislature.gov/senators/SenateComDocs/Pages/Finance%202025.aspx.

To read written testimony submitted on HB 5473, go to https://www.rilegislature.gov/Special/comdoc/Pages/House%20Finance%202025.aspx.