Rhode Island House Passes $14.3B Budget Amid D.C. Uncertainty and GOP Pushback

After a brisk three-hour debate, lawmakers advanced a budget boosting health care funding and raising new taxes on vacation homes—while bracing for potential federal cuts that could send them back to the State House this fall

R.I. House Speaker Joe Shekarchi confers with fiscal adviser Sharon Reynolds during the budget vote on Tuesday, June 17, 2025.
R.I. House Speaker Joe Shekarchi confers with fiscal adviser Sharon Reynolds during the budget vote on Tuesday, June 17, 2025.
Ian Donnis / The Public’s Radio
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R.I. House Speaker Joe Shekarchi confers with fiscal adviser Sharon Reynolds during the budget vote on Tuesday, June 17, 2025.
R.I. House Speaker Joe Shekarchi confers with fiscal adviser Sharon Reynolds during the budget vote on Tuesday, June 17, 2025.
Ian Donnis / The Public’s Radio
Rhode Island House Passes $14.3B Budget Amid D.C. Uncertainty and GOP Pushback
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The Rhode Island House of Representatives used a speedy three-hour debate Tuesday to pass a $14.3 billion budget for the fiscal year starting July 1, amid uncertainty about possible fallout from GOP spending cuts in Washington, D.C.

The vote came on a 66-to-9 mostly party-line vote. State Rep. Marie Hopkins (R-Warwick), a nurse who said she appreciated heightened healthcare spending in the plan, was the only Republican to vote for it.

House Speaker Joe Shekarchi told reporters after the vote that drastic cuts from Washington could force lawmakers to return for an unusual fall session. Shekarchi said he heard the U.S. Senate version of President Trump’s “Big Beautiful Bill” has sharper cuts than the U.S. House version, “but we’ll have to wait and see what happens.”

“But I’m very comfortable with the budget we just adopted in the House,” he added. “I think it’s a good budget,” in part because of an additional $45 million for primary care providers, $38 million more for hospital reimbursement, and $12 million more for nursing home reimbursement.

The three-hour span of the budget debate continues a change from an earlier era in Rhode Island politics, when the session continued into the wee hours of the morning.

State Rep. Geoge Nardone (R-Coventry) said his No vote was based on growth of the budget — which is about $400 million more than the current one, and has climbed from about $9 billion 10 years ago — and that he didn’t perceive efforts to trim spending at a time when the state plans to raise some taxes and fees.

“It should be a two-way street,” he said. “If we’re raising taxes, we should be tightening our belt.”

The tax hikes include a boost in the gas tax, adding sales tax for parking garages, and a new statewide real estate tax on vacation homes valued at $1 million and up.

Other Republicans found reason for praise.

House GOP Leader Mike Chippendale of Foster said he could not support the budget, but he told Shekarchi, “I truly respect the way that you managed the budget, the way that you manage the members, the way that you manage each issue, the fact that you will not even entertain anything financially in the form of legislation without a hearing. Your management of the process is unlike anything I’ve seen in this House and is commendable and worth acknowledging.”

Most of the debate centered on plans to raise taxes on vacation homes, and how Attorney General Peter Neronha is directing $10 million from a recent settlement to dental care for poor children in Providence.

Shekarchi said he believes the court approval cited by Neronha is sufficient for the attorney general to decide the path of the money. He said if critics disagree, they should go to court to challenge it.

But Rep. Brian C. Newberry (R-North Smithfield) insisted that Neronha’s action was an illegal usurpation of legislative prerogative, based on a statute enacted two years ago.

“It is an insult to every member of this chamber,” he said. “This is not about Republicans, this is not about Democrats, it’s not about liberals, it’s not about conservatives. It’s an insult to every member of the Senate. We need to do something to stop this because there is nothing to stop him or his successors from doing the same thing down the road.”

Majority Leader Chris Blazejewski led the opposition to an amendment sponsored by Newberry to claw back money from Neronha. He said Neronha serves the people of Rhode Island, and that people would be hurt by trying to redirect the settlement money away from the attorney general’s office.

Newberry’s amendment was voted down, 16-58.

Rep. Charlene Lima (D-Cranston) unsuccessfully tried to raise the threshold for imposing a new tax on the value of vacation homes from $1 million to $2 million.

“This is not the Taylor Swift tax. This is the mom and pop tax,” she said, contending that many people who bought vacation homes decades back would be penalized by their appreciation in value.

“If you own a second home that is valued at a million dollars, you can pay a little more in taxes,” responded House Whip Katherine Kazarian (D-East Providence).

Lima’s amendment was voted down, 16-to-57.

The Rhode Island Senate plans to vote on the budget Friday. If approved, the next step will be the governor’s desk.

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