A way forward as new federal law slashes aid to Rhode Islanders
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However, all is not lost. There is a Rhode Forward, if we are willing to act boldly.
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Information is power: We must urgently understand what is in this law and how its provisions will impact health care, food security, education, and our state budget. We need clear, timely analysis and a coordinated statewide response to prepare for the timeline of these cuts.
Build a Rhode Island solution together:
We need collective, strategic action that includes community leaders, policy experts, philanthropists, state agencies, and lawmakers. We must protect essential services while building an economy that sustains us all.
Advance tax justice: The new federal law exposes the injustice in our tax system. While essential services are being cut, tax breaks for the wealthy that began in 2017 have been extended and will continue immediately in 2026. According to the Institute on Taxation and Economic Policy, Rhode Island's top 1 percent will receive $354 million in total tax cuts, an average of $58,840 per filer. That is far more than they would have paid under the
Rhode Island's tax policy must counter this by finally creating a fair tax structure. Most Rhode Islanders agree that the wealthy must do their part and pay their
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Call a special fall legislative session:
Thanks to the foresight of the Senate and House leadership, the 2025 legislative session remains in recess, which allows for the opportunity of a special fall session. We urge leadership to reconvene to fully review and proactively plan against the harms of the reconciliation law and pass the Top 1 percent bill, which would raise $190 million annually, with $95 million available in FY 2026.
We propose allocating this revenue to:
Add funds to the Supplemental Rainy Day Fund, moving us closer to 10% or more of General Revenue, like most New England states.
Fully fund RIPTA, strengthening our economy and reducing barriers to employment.
Provide a cost-of-living increase for Rhode Island Works, the state's cash assistance and workforce development program for the poorest Rhode Islanders.
Fund enhanced premium tax credits or alternatively, use contributions from all commercial insurance, including large employer plans.
While some of these cuts won't go into effect immediately, we cannot afford to wait until benefits are lost or our state budget is facing worse deficits. Lawmakers must act now. We need to be ahead of the crisis. We must treat this moment with the urgency it deserves and prepare today for what is coming our way.
Weayonnoh Nelson-Davies, Esq., is the executive director of the Economic Progress Institute.
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