Rhode Island Sends $100 Million Bond to Voters
On June 12, 2026, Rhode Island Governor Dan McKee signed the state's $15.2 billion fiscal year 2027 budget, the largest in state history. The House of Representatives had passed it 65 to 10 on June 5 and the Senate approved it 32 to 6 on June 9. For manufacturers and site selectors, the most relevant piece is the "Keep Rhode Island Building" package, $600 million in general obligation bonds headed to the November 3, 2026, statewide ballot. Its anchor is a $100 million economic development question that pairs $55 million for industrial site development at Quonset Business Park and the I-195 District with $45 million for infrastructure supporting the state's ocean, defense, life sciences, and data analytics industries.
Key Takeaways
| 01 | A $100 million economic development bond goes to voters on November 3, 2026. It splits $55 million for sites at Quonset and the I-195 District and $45 million for growth industry infrastructure. |
| 02 | Lawmakers cut the Governor's $115 million request to $100 million. Site development fell from $70 million to $55 million and still covers Quonset and the I-195 District. |
| 03 | The $55 million adds to $40 million in site bonds voters approved in 2021. House budget writers declined to add $1 million to Commerce's separate Site Readiness fund, saying $1 million remains unspent. |
| 04 | Nine Rhode Island Commerce incentive programs, including Rebuild RI and the First Wave Closing Fund, now run through December 31, 2027. The Rebuild RI cap rises by $25 million to $250 million. |
| 05 | Wavemaker Fellowship applications are due July 31, 2026. Rhode Island Commerce says the FY27 budget adds $1,016,621 for the program, which offers tax credits of up to $6,000 a year. |
Governor McKee's January proposal set that bet at $115 million: $70 million for industrial site development at Quonset and the I-195 District, plus the $45 million industry infrastructure fund. The General Assembly trimmed the enacted question to $100 million by cutting site development to $55 million, which still covers Quonset and the I-195 District. The budget also extends nine Rhode Island Commerce Corporation incentive programs through December 31, 2027, and adds new money to the Wavemaker Fellowship, whose current application cycle closes July 31, 2026.
The $55 million Site Development item adds to $40 million in site bonds that voters approved in March 2021, according to House fiscal staff. House budget writers declined to add another $1 million to the separate Site Readiness program at Rhode Island Commerce this cycle, noting that $1 million remains unspent in the fund from the current fiscal year.
"This budget keeps our promises to Rhode Islanders: delivering affordability, protecting vulnerable residents from harmful federal cuts, and continuing to invest in the schools, housing, and infrastructure that support good-paying jobs and economic growth."
Governor Dan McKee, on signing the FY27 budget
Source: Office of the Governor, June 12, 2026. Photo: official portrait, Office of the Governor of Rhode Island.
The $600 Million Bond Package
Voters must approve each question on November 3, 2026, before any money flows. The enacted package puts five questions on the ballot (Exhibit 1), one fewer than the six the Governor proposed in January. Together they total $600 million, the same top-line figure the Governor requested, but the General Assembly moved money among the questions.
Exhibit 1
Higher education takes nearly half of the $600 million, and economic development is the third-largest question on the ballot.
Keep Rhode Island Building, the five November 2026 bond questions
| Ballot question | Amount | Key components |
|---|---|---|
| Higher Education Facilities | $275M | University of Rhode Island (URI) integrated health building ($165M); Community College of Rhode Island (CCRI) workforce innovation center, Warwick ($60M); Rhode Island College (RIC) student success center ($50M) |
| Housing and Homeownership | $120M | Affordable housing production and preservation; $25M for homeownership |
| Economic Development | $100M | Site development at Quonset Business Park and the I-195 District ($55M); ocean, defense, life sciences, and data analytics infrastructure ($45M) |
| Green Economy | $55M | Includes $25M Resilient Rhody Fund, the state's largest climate-resiliency investment |
| Cultural Economy | $50M | State History Center ($45M); historic preservation matching grants ($5M) |
Sources: Office of Governor Dan McKee, June 12, 2026; 2026-H 7127, Article 5 as amended.
The final allocations differ from the January proposal in four ways (Exhibit 2). Lawmakers raised the URI health building from $105 million to $165 million, scrapped a proposed $50 million career and technical education bond, cut the economic development question from $115 million to $100 million, and raised the green economy question from $50 million to $55 million. The URI increase lifted the higher education question from $215 million to $275 million.
The industry infrastructure fund names data analytics alongside ocean, defense, and life sciences. The Governor's FY 2027 Executive Summary describes the $45 million as financing "infrastructure, facilities, projects, and investments that support Rhode Island's ocean, defense, life sciences, data analytics, and related industries," and the enacted language carries that list forward. The data analytics category could let the state fund infrastructure tied to data center and computing projects.
Exhibit 2
The Assembly kept the Governor's $600 million top line but shifted $15 million out of economic development and $50 million out of career and technical education.
Economic development bond, January proposal versus enacted
| Provision | Governor's proposal (Jan. 2026) | Enacted (June 12, 2026) |
|---|---|---|
| Economic development question | $115M | $100M |
| Industrial site development | $70M, Quonset and I-195 District | $55M, Quonset and I-195 District |
| Industry infrastructure | $45M, ocean, defense, life sciences, data analytics | $45M, same list |
| Total bond package | $600M, six questions | $600M, five questions |
| Career and technical education | $50M | Dropped |
| URI integrated health building | $105M | $165M |
Sources: FY 2027 Executive Summary (Office of Management and Budget); Office of Governor Dan McKee, June 12, 2026; 2026-H 7127, Article 5 as amended.
Nine Commerce RI Programs Get Another Year
The budget extends the sunset dates on nine Rhode Island Commerce Corporation incentive programs through December 31, 2027, preserving the state's core deal-closing toolkit. The Governor's budget proposed moving each sunset from December 31, 2026, to December 31, 2027, and the General Assembly carried the extensions into the enacted budget. The Governor also proposed, and the enacted budget includes, a $25 million increase in the Rebuild Rhode Island tax credit and sales-and-use-tax exemption cap, bringing the aggregate program cap to $250 million. The extended programs are:
- Rebuild Rhode Island Tax Credit: gap financing for real estate projects
- Qualified Jobs Incentive Tax Credit: annual credits for net new jobs
- Rhode Island Tax Increment Financing
- Tax Stabilization Incentive
- First Wave Closing Fund: the state's discretionary deal-closing fund
- I-195 Redevelopment Project Fund
- Stay Invested in RI Wavemaker Fellowship: student loan tax credits for science, technology, engineering, and math (STEM), design, healthcare, and education talent
- Main Street RI Streetscape Improvement Fund
- Innovation Initiative
Rhode Island Commerce says the budget adds $1,016,621 for the Wavemaker program, which awards refundable tax credits of up to $6,000 per year for up to four years. Rhode Island Commerce opened the current Wavemaker application cycle on June 23, with applications due Friday, July 31, 2026, at 11:59 p.m.
"Programs such as Wavemaker help us to retain and further foster that talent, enabling participants to establish their careers and contribute to the success of their employers right here in Rhode Island."
Stefan Pryor, Rhode Island Secretary of Commerce
Source: Rhode Island Commerce Corporation, June 23, 2026. Photo: official headshot, Rhode Island Executive Office of Commerce.
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The Tax Increase on Income Over $1 Million
The budget raises the top income tax rate in three steps. The enacted budget creates a new top personal income tax bracket on income over $1 million, phased in over three years: 6.99 percent beginning January 1, 2027, 7.99 percent beginning January 1, 2028, and 8.99 percent beginning January 1, 2029, against the current top rate of 5.99 percent. The Governor had proposed going to 8.99 percent in a single step. The General Assembly chose the phase-in, which is projected to raise about $22 million in FY27 and roughly $142 million a year once fully phased in.
Opponents warned that the tax could hurt competitiveness. House Minority Leader Mike Chippendale said the state will lose top earners and employers. The budget pairs a larger site offer with a higher top rate. A manufacturer comparing Quonset with a graded site in South Carolina or Ohio will weigh the $55 million site bond, while pass-through owners and executive recruits will pay the higher rate.
The budget takes effect July 1, 2026, and the bond money depends on the November 3 vote. Exhibit 3 lists the dates that follow.
Exhibit 3
Two deadlines land before the November vote, and the extended incentive window closes at the end of 2027.
Key dates, as of June 26, 2026
| Date | Milestone |
|---|---|
| Jan. 15, 2026 | Governor McKee proposes FY27 budget with $600M, six-question bond package ($115M economic development) |
| Jun. 5, 2026 | House passes FY27 budget, 65 to 10 |
| Jun. 9, 2026 | Senate approves FY27 budget, 32 to 6 |
| Jun. 12, 2026 | Governor McKee signs the $15.2B FY27 budget |
| Jun. 23, 2026 | Rhode Island Commerce opens Wavemaker Fellowship application cycle |
| Jul. 1, 2026 | FY27 budget takes effect |
| Jul. 31, 2026 | Wavemaker Fellowship applications due, 11:59 p.m. |
| Nov. 3, 2026 | Statewide referendum on the five Keep Rhode Island Building bond questions |
| Jan. 1, 2027 | New 6.99% bracket on income over $1M takes effect |
| Dec. 31, 2027 | Sunset date for the nine extended Commerce RI incentive programs |
Sources: See References below.
What to Do Now
This is for manufacturers and developers weighing Quonset against graded sites in other states, and for employers with technical hires who can use the Wavemaker Fellowship. The $100 million economic development bond goes to voters on November 3, 2026, and the nine extended Commerce RI programs now run through December 31, 2027. If you want a read on fit before November 3, reach out to our team.
References
- Office of Governor Dan McKee, "Governor McKee Signs Fiscal Year 2027 Budget, Advancing Key Affordability for All Initiatives," June 12, 2026.
- Rhode Island Current, "House approves $15.2B FY27 budget with marquee acquisition: millionaire's tax," June 5, 2026.
- Rhode Island Current, "FY27 budget heads to Gov. McKee's desk after Senate approval," June 9, 2026.
- Rhode Island Current, "McKee signs $15.2B FY27 budget to great fanfare from lawmakers and advocates," June 12, 2026.
- RI 2030, "Keep Rhode Island Building" (Governor's FY 2027 bond proposal, January 2026).
- Rhode Island Office of Management and Budget, FY 2027 Executive Summary, February 26, 2026 (errata edition).
- Greater Newport Chamber of Commerce, "6.1.26 Advocacy in Action," June 1, 2026.
- Rhode Island Commerce Corporation, "Rhode Island Commerce Opens Wavemaker Fellowship Applications," June 23, 2026.
- Rhode Island Commerce Corporation, Site Readiness Program.
- Rhode Island General Assembly, FY 2027 Budget, "General Assembly Approves FY 2027 Budget."
© Copyright 2026 TC Policy Group, LLC (d/b/a Crawford Partners). The views expressed herein are those of the author(s) and not necessarily the views of Crawford Partners, its management, its subsidiaries, its affiliates, or its other professionals. Crawford Partners is not a law firm and cannot provide legal advice.