Republicans in Washington are gutting the social safety net, and Rhode Islanders will suffer.
Economic Progress Institute Executive Director Weayonnoh Nelson-Davies, Esq., detailed the litany of harms caused by the One Big Beautiful Bill Act in a letter to legislative leaders urging the Rhode Island General Assembly to reconvene a special legislative session this fall.
Here’s the letter:
“I urge you to call for a Special Fall Legislative
Session to take proactive action against federal cuts and forecasted
state budget challenges.
“The passage of the federal One Big Beautiful Bill
Act has set into motion devastating cuts to programs and services that
hundreds of thousands of Rhode Islanders depend on, while extending tax breaks
for the wealthiest. Rhode Island faces significant and immediate threats to
health care access, food security, and our state budget. While some may argue
that this is not an urgent situation necessitating the call to reconvene for a
special fall session, because some federal cuts are one or two years down the
road, we must be proactive in securing sufficient revenue to protect Rhode
Islanders and the systems and programs upon which they rely, particularly in
light of the projected $300 million state budget deficit for FY27. It is
important to understand that some Rhode Islanders may experience existential
challenges long before the general assembly is able to put responses into
motion, likely at the close of the next legislative session, 10 months from
now, with effects that might take six months to two years to be realized.
Without swift action, these cuts will harm our residents, destabilize our
budget, and exacerbate inequities in 2026 and beyond.
Key Impacts on Rhode Island
- Over
300,000 residents rely on Medicaid, including 67,000 at risk
of losing health coverage due to the Affordable Care Act expansion
rollbacks. [See: It’s
not just Medicaid and Medicare at risk. This program for working-class
Rhode Islanders has been cut.]
- The
loss of health coverage will result in delays in care, worse medical
outcomes, increased wait times at emergency rooms, and hospitals being
strained by having to provide more uncompensated care.
- The
expiration of enhanced premium tax credits will increase HealthSource
RI premiums by an average of 85% for about 40,000 residents; some
may forgo coverage, and others may choose less comprehensive coverage.
- Due to
the federal cost shift, Rhode Island’s estimated SNAP-related
costs would total over $67 million annually: $51.8 million in new state
obligations to cover 15% of benefits, plus $15.8 million in administrative
expenses.
- Major
cuts to education and immigration protections, including access to safety
net programs.
“It has been reassuring to see the state take some measures
to address these negative impacts by convening the Executive Office of
Health and Human Services (EOHHS) and Department of
Revenue (DOR) federal advisory groups, where the Economic
Progress Institute (EPI) is proud to have a seat at the table.
“As a committed partner in this process, EPI hosted a
virtual Federal Budget Briefing with our national partner,
the Center on Budget and Policy
Priorities (CBPP), on
July 24th. In September, we are convening policy, research, and community
organizations to assess the harm of the federal law, identify urgent concerns,
set priorities, and devise alternative solutions to supplement the
recommendations from the federal advisory groups.
“In my recent Boston
Globe commentary [paywalled], I stressed that our path forward
must include informed and timely assessments and analyses; building a Rhode
Island Solution together with stakeholders across sectors; and advancing tax
justice in Rhode Island by enacting a fair tax structure that ensures the
wealthiest contribute their share to protect essential services and ensure our
state can function.
“The proposal to tax the top 1%, sponsored by Senator Melissa
Murray and Representative Karen Alzate, would raise $190
million annually, with $95 million available in FY 2026 if enacted this fall. [See: Legislators
once again introduce the “millionaire’s tax”] This will strengthen our
fiscal resilience and provide critical investments in Rhode Islanders. It would
also increase tax fairness, considering the richest 1% of Rhode Islanders will
see a combined federal tax cut of $354 million. On an individual basis, this
means that the top 1% of Rhode Island households will receive an average tax
cut of $58,840 a year for each of the next 10 years, according
to EPI’s national partner, the Institute on Taxation and Economic Policy.
The Economic Progress Institute’s Request
“Thanks to the foresight of the House and Senate leadership,
the 2025 legislative session remains in recess. We respectfully urge you to
reconvene a special fall legislative session to fully review
and proactively plan against the harms of the reconciliation law and pass
the bill to tax the top 1%.
“We propose allocating this revenue to:
- Provide
$40 million to fund the enhanced premium tax credits, which will expire at
the end of 2025; alternatively, leverage contributions from all commercial
insurance, including large employer plans.
- Fully
fund the Rhode
Island Public Transportation Authority (RIPTA)
as an investment in our economy by providing $10 million to close the
deficit gap, avoiding the proposed harmful service cuts or fare increases
for riders. It is important to note the inequitable policy choice the
state has made by spending $239.9 millon to make local governments whole
from the car tax phase out, while at the same time deciding to underinvest
in RIPTA and raise fares for its largely low-income riders.
- Provide
a cost-of-living increase for Rhode
Island Works recipients.
- Increase
the Supplemental Rainy Day Fund toward the 10% standard
of other New England states to help prepare the state for the
substantially increased costs of SNAP and Medicaid in the coming years.
“The 2025 session’s recess allows for a special fall session. Acting now will safeguard Rhode Islanders from avoidable harm and prepare our state for the challenges ahead. Delaying action risks deeper deficits and greater human costs in 2026 and beyond.”
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