Governor McKee slams $14.3 billion budget over added taxes, yet won’t block it

PROVIDENCE, R.I. — Rhode Island Governor Dan McKee announced Wednesday he will not sign the state’s $14.3 billion budget for 2026, blasting lawmakers for adding what he called “unnecessary” taxes and fees that hurt working families.

Key Issues McKee Opposed:

    •    A 2-cent increase in the gas tax (starting July 1)

    •    Higher real estate conveyance taxes

    •    A new $4 per person monthly health insurance fee

    •    Increased fees on traffic violations and vehicle registrations

    •    New sales tax on short-term public parking

    •    A planned tax on second homes over $1 million (the so-called Taylor Swift tax) starting in 2026

McKee called it a bad budget and urged Rhode Islanders to contact their legislators to push back. However, he stopped short of vetoing the plan, saying the best move was to let it pass without his signature to draw public attention.

This is the first time a Rhode Island budget has passed without a governor’s signature since 2010.

McKee said, “This is not a time to be putting fees and additional taxes on the working families in the state of Rhode Island. I am drawing a line in the sand.”

Meanwhile, House Speaker Joe Shekarchi and Senate President Valarie Lawson defended the budget, calling it balanced, bipartisan, and focused on improving healthcare and housing access.

Political tensions are rising as McKee’s move comes ahead of a potential 2026 re-election fight, possibly even facing Shekarchi.

The budget officially takes effect Friday.