Rhode Island Lawmakers Conclude 2025 Session with Major Reforms

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Lawmakers in Rhode Island discuss significant reforms at the state capitol.

News Summary

Rhode Island legislators wrapped up the 2025 session with significant reforms, including a ban on payday lending, new restrictions on assault weapons, and a compromise on casino smoking regulations. Lawmakers approved a $14.3 billion budget that increases spending on healthcare while implementing tax hikes. They also addressed housing issues and proposed measures to combat food assistance fraud, highlighting the complexities of state budgeting and consumer protection during this legislative term.

Rhode Island lawmakers wrapped up the 2025 legislative session with significant reforms, including a ban on payday lending, an assault weapons prohibition, and a compromise on casino smoking regulations.

Lawmakers have effectively banned payday lending by capping annual interest rates at 36% and removing exemptions from the state’s usury law. This change aims to protect consumers from exorbitant interest rates prevalent in the payday lending industry. Furthermore, the Rhode Island General Assembly has approved a $14.3 billion state budget, which is $120 million higher than the budget proposed by Governor Dan McKee. This new budget also revises the current fiscal year budget, increasing it from $14 billion to $14.8 billion.

The budget allocates an additional $45 million for Medicaid reimbursements for primary care. It also provides $38 million in extra funding for hospitals and $12 million for nursing homes, demonstrating an investment in the state’s healthcare infrastructure. However, a proposal to include $10 million for the Rhode Island Public Transit Authority (RIPTA) was voted down in the Senate.

To support the increased spending, the budget introduces several tax hikes, including a two-cent increase in the gas tax and a new “Taylor Swift tax” levied on second homes valued at over $1 million. Four Republican senators opposed the budget, criticizing the tax increases and claiming that Rhode Island is struggling with a spending problem.

In a historic move, lawmakers debated and approved a ban on the manufacture, transfer, or sale of assault weapons, awaiting the governor’s signature to officially become law. The intense debate continued late into the night, culminating in a vote at 1:36 a.m. on June 21.

A compromise was also reached regarding smoking in casinos, allowing for limited smoking in a designated lounge in each casino, effective January 1, 2027. This amendment received support from the Laborers’ International Union, although some advocates desired a complete ban on smoking in these establishments. Additionally, Bally’s casino has been granted permission to live stream gaming out of state for simulcast, which is anticipated to bolster revenue.

The General Assembly has passed legislation prohibiting public officials from interfering with procurement processes, aimed at ensuring transparency and fairness in government contracts. Meanwhile, efforts to update the bottle redemption program resulted in a proposal for a study rather than immediate legislative action.

In addressing housing concerns, House Speaker K. Joseph Shekarchi introduced a package of twelve bills aimed at improving housing conditions statewide. Lawmakers are also contemplating a special session in the fall due to potential federal funding cuts that could impact Medicaid and the Supplemental Nutrition Assistance Program (SNAP).

Concerns have been raised by community action agencies regarding SNAP skimming fraud, particularly its detrimental effects on low-income residents. There has been pressure to transition Electronic Benefit Transfer (EBT) cards to chip and tap technology to combat this issue; however, no action has been taken despite recent incidents of significant theft.

Moreover, lawmakers expressed frustration over the beverage industry’s influence on blocking proactive waste management legislation. The end of the session saw both chambers voting on various pieces of legislation, including a law to study the bottle redemption program until December 2026.

The newly approved budget also includes provisions for services addressing homelessness and dedicated funding for early childhood education and public schools, underlining a commitment to improving the quality of life for Rhode Island’s residents.

In conclusion, the 2025 legislative session marks a notable period for Rhode Island as lawmakers navigate complex issues surrounding consumer protection, public health, and state budgeting while setting the stage for future discussions on pressing state concerns.