A way forward as new federal law slashes aid to Rhode Islanders – The Boston Globe

Congress has passed disastrous legislation that extends the worst Trump-era tax policies: tax breaks for the wealthy, paid for by increasing the national deficit and gutting critical resources for millions of people, such as health care and food assistance. This new law also targets immigrants, including those who are lawfully present, refugees, asylees, and survivors of domestic violence and human trafficking.

The core of this Big Horrendous Bill is a series of devastating cuts: nearly $1 trillion from Medicaid, over $300 billion from education, $186 billion from the Supplemental Nutrition Assistance Program (SNAP), and more. More than 300,000 Rhode Island residents rely on Medicaid. According to the Center on Budget and Policy Priorities (CBPP), 67,000 Rhode Islanders who gained coverage under the Affordable Care Act expansion are at risk of losing it. Congress also allowed enhanced premium tax credits to expire, which means that approximately 40,000 low- and middle-income Rhode Islanders who get coverage through HealthSource RI will lose subsidies and see their premiums increase by an average of 85 percent.

Food insecurity will also worsen. More than 144,000 Rhode Islanders rely on SNAP and about 22,000 of them may lose some of their benefits. Congress has also shifted more of the burden of funding Medicaid and SNAP to states. For the first time, our state will be expected to shoulder 15 percent of SNAP benefits, at a cost of $51.8 million per year, plus an additional $15.8 million annually in administrative costs previously covered by federal dollars.

However, all is not lost. There is a Rhode Forward, if we are willing to act boldly.

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 proposed Rhode Island 3 percent surtax on high earners.

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 fair share. As we approach the 2026 elections, it is important to note that in a recent Pell Center poll, 70 percent of Rhode Island voters supported higher taxes on top earners. More than 1,000 residents and 90 organizations signed the Revenue for Rhode Islanders petition calling for a tax on the top 1 percent of R.I. earners, which was delivered to the General Assembly in June before the recess of the legislative session. Wealthy Rhode Islanders need to stand together with the rest of us and do more to protect our state.

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.