Affordability for All: Lowering Costs for Rhode Island Families

For the past few years, Rhode Islanders – like families across the country – have faced rising costs for everyday goods, housing, health care, and utilities. Those pressures have only grown under President Trump’s tariff policies and federal budget changes, which are driving up prices and squeezing household budgets. In response, Governor McKee’s FY 2027 budget is squarely focused on affordability—putting more money back in the pockets of seniors and working families by lowering bills, delivering targeted tax relief, and curbing the fastest-growing costs facing Rhode Islanders today.

Providing Tax Relief for Families and Seniors:

Eliminate the state income tax on Social Security benefits.
Create the state’s first-ever permanent Rhode Island Child Tax Credit.
Create the state’s first-ever premium assistance program to fully replace the Affordable Care Act’s Enhanced Advance Premium Tax Credit for individuals who earn less than 200% of the federal poverty level, keeping coverage affordable for approximately 20,000 Rhode Islanders.
Reverse the General Assembly’s FY 2026 gas tax increase.

Lowering Energy Costs for Ratepayers:

Provide Rhode Island ratepayers with more than $150 million in savings in the first year and over $1 billion across five years by:
1. Aligning the Renewable Energy Standard with neighboring states by aligning the schedule with the Act on Climate’s 2050 target and expanding eligibility to include other low-cost zero-emission resources.
2. Renewing and capping the state Energy Efficiency Program, and
3. Lowering net-metering costs.

»These reforms will reduce charges on utility bills while creating a more affordable path to decarbonization.

Advance an all-of-the-above energy strategy that lowers costs through expanding baseload and intermittent energy supply and advocate for Jones Act reform at the federal level to lower winter costs.

Controlling Health Care Costs

Curb health care spending growth by requiring carriers and large providers exceeding the 3.2% cost-growth target to enter performance improvement plans with enforceable penalties.
Expand the supply of low-cost care options by modernizing certificate of need laws, joining the physician assistant licensure compact, and expanding scope-of-practice authority for pharmacists and dental hygienists.
Require Pharmacy Benefit Manager (PBM) transparency by mandating detailed reporting to the Health Insurance Commissioner on rebates, spread pricing, fees, and business practices, with public disclosure and a benchmarking study to inform evidence-based reforms aimed at lowering prescription drug costs.

Reducing Homeownership Costs and Expanding Housing Opportunity

In alignment with Housing 2030, accelerate housing production—15,000 new homes produced or in the pipeline by 2030—using the 2024 bond and the proposed 2026 bond.
Prioritize new homeownership opportunities, including expanding affordable manufactured homes for young families and first-time buyers.

Higher Education

Transition the Hope Scholarship at Rhode Island College (RIC), which provides in-state students their junior and senior years tuition free at RIC, from a pilot program to a permanent one.

Protecting Taxpayers and Strengthening Fiscal Discipline

Place a 2026 ballot question granting the Governor line-item veto authority, aligning Rhode Island with 43 other states and improving spending control.