Gov. Dan McKee delivered his 2025 State of the State on Tuesday, Jan. 16, 2025. Here he is shown in his 2024 State of the State address. (Michael Salerno/Rhode Island Current)
Gov. Dan McKee is getting trounced by critics over the ongoing delays in the Washington Bridge rebuild, the cyberattack on the state’s public benefits platform, and his repeated refusal to declare a public homelessness emergency as temperatures plummet.
But the embattled governor remained optimistic in his 2025 State of the State address scheduled for 7 p.m. Tuesday, attempting to rally his rivals to come together for the “team” of Rhode Island. His pre-written remarks were shared with Rhode Island Current Tuesday afternoon.
“Tonight, I am asking everyone who loves our state and who shares a deep sense of pride in Rhode Island to pull up a chair and work with me to help accelerate the progress we’ve made in the last four years,” McKee said. “If you do, I know that the chapter we’re writing together now will be Rhode Island’s best one yet.”
Meanwhile, frustration with the governor is reaching a fever pitch, with progressive advocates staging their own “People’s State of the State” an hour before McKee stepped up to the rostrum within the Rhode Island House of Representatives chamber.
Heading into his fifth year as Rhode Island’s governor, McKee framed his game plan as one of long-term strategy, rather than a single year — or single budget — perspective.
“As we return to a pre-pandemic fiscal environment, we must take steps to right-size government while preserving programs that improve educational outcomes, raise incomes, and make our residents healthier — three pillars in the Rhode Island 2030 plan,” McKee said Tuesday.
The long-term plan was first released by his administration in 2021. An update was posted online Tuesday night.
McKee acknowledged the nine-digit structural deficit projected for the fiscal year that starts July 1, though he pegged the gap at $250 million. House Speaker K. Joseph Shekarchi previously relied on data projecting a $330 million hole.
McKee pledged to close the chasm in his fiscal 2026 budget proposal, which will be unveiled Thursday, while promising no broad-based tax increases as part of his spending plan. Yet, he offered no hints at where he’ll make the spending cuts needed to balance the fiscal 2026 budget.
As we return to a pre-pandemic fiscal environment, we must take steps to right-size government while preserving programs that improve educational outcomes, raise incomes, and make our residents healthier — three pillars in the Rhode Island 2030 plan
– Gov. Dan McKee in his 2025 State of the State
Assault weapons ban, new funding for homelessness services make the list
What his budget will contain: a proposed ban on assault weapons, enhanced student loan forgiveness for primary care physicians who stay and work in Rhode Island, and two new funding streams to support homelessness assistance. It was unclear how McKee’s proposed gun legislation ties in with state spending.
Last year, McKee attempted to bring in more money for homelessness relief by extending the state’s 5% hotel tax to short-term rentals. His proposal was not included in the final, fiscal 2025 spending plan approved by lawmakers.
McKee on Tuesday did not specify how he would bring in more money to improve services for unhoused residents, but said the two new funding streams together would contribute an extra $4.4 million in fiscal 2026, rising to $8 million in fiscal 2027, if approved.
Housing has been a top priority for advocates and lawmakers, including Shekarchi. Yet McKee has resisted pressure to make a public homelessness declaration amid freezing temperatures and limited shelter capacity, despite calls to do so by two-thirds of the 113 members of the Rhode Island General Assembly.
McKee signaled his shared frustration with critics fed up with delays in the 45-unit pallet shelter community planned near Route 146 in Providence.
“Like you, I have been frustrated with the length of time it has taken to get the village operational, but we are going to get this project over the finish line without compromising on safety,” McKee said Tuesday.
He also previewed a new online dashboard the Department of Housing will launch that tracks available shelter beds statewide. The state is “approaching” 1,300 beds, a 60% increase from when McKee took office nearly four years ago, he said. Another 6,500 permanent housing units have been “completed, preserved or in the pipeline” thanks to state and federal funding allocated under McKee’s administration, he said.
McKee took a victory lap on education and economic development, touting his out-of-school program, Learn365 and efforts to reduce absenteeism, along with progress in standardized testing scores for public school students. His forthcoming budget will include a $40 million bump in state aid to local school districts, along with $2.5 million in grants for out-of-school learning opportunities.
Regarding growth in personal economics, McKee circled back to his 2024 State of the State speech, in which he committed to try and raise per capita income by $20,000 by 2030. A year later, McKee pledged to invest in 1,000 new “work-based learning opportunities” along with boosts to the existing, Real Jobs Rhode Island workforce training program.
His address Tuesday did not include cost estimates on these proposals.
Much ado about bridges
As for how the state plans to address fallout from the December attack on RIBridges, which has compromised the personal information of an estimated 650,000 Rhode Islanders who use or previously used the public benefits platform and health care marketplace? Stay tuned.
“As far as the data breach goes, we are going to follow the facts and hold the right people accountable,” McKee said.
The dueling bridge crises — RIBridges and the physical Washington Bridge — have been easy plays for McKee opponents to make against him. But McKee on Tuesday insisted the pending rebuild of the westbound span of the highway was a story of “good news,” touting the $220 million secured in federal grants and 75% complete demolition of the existing superstructure.
Regarding the recent confirmation that Prospect Medical Holdings, the owner of Our Lady of Fatima Hospital and Roger Williams Medical Center, has filed for Chapter 11 bankruptcy, McKee said he was “in conversations” with executives of the hospital chain operator as well as its approved buyer, The Centurion Foundation.
Also a topic of closed-door conversations: the fate of Pawtucket-based Hasbro Inc, which has been courted to abandon its Rhode Island roots in favor of a new headquarters in Massachusetts.
McKee offered little information on Hasbro Tuesday.
“Rhode Island is also beginning to flip the script on the strength of our economy,” he said “After years of being the underdog, our state is now becoming a place of innovation and opportunity — and this is a point we’re emphasizing in our ongoing talks with Hasbro.”
He also gave only a brief nod to the rallying cry to increase state reimbursement rates for primary care providers, which have lagged neighboring states. McKee said his proposed spending plan would extend the state’s regular rate review to primary care providers, but stopped short of promising increases in the fiscal 2026 budget.
Foulkes takes aim
The silent elephant in the jam-packed room: the 2026 gubernatorial race, which could feature a rematch between the embattled incumbent and one of his 2022 Democratic rivals, Helena Buonanno Foulkes. Neither McKee nor Foulkes have confirmed their candidacy, but Foulkes didn’t wait till Tuesday to swing against McKee.
“This isn’t just fiscal mismanagement — it’s a failure that touches every Rhode Islander’s life” Foulkes said in a statement Monday. “Each dollar of overspending means less support for homeless neighbors seeking shelter, crumbling bridges going unfixed, and critical services left underfunded. The Washington Bridge debacle and massive data breach exposed more than just failing infrastructure and cybersecurity – they revealed a government that refuses to take responsibility for its failures while demanding more from hardworking Rhode Islanders.”
This story will be updated.
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