As the Rhode Island legislature kicks off their 2026 session, here are some things to keep in mind:

• The state minimum wage increased to $16 per hour on January 1, 2026, and will increase again to $17 per hour on January 1, 2027 as part of legislation passed last year.
• The state claims to face a $101 million budget deficit for FY27, resulting in legislative leaders declaring that “nothing is off the table” when it comes to solutions.
• One proposal to generate new revenue last session was an income tax surtax of 3% on income over $625,000. Small business owners should be aware this could have an impact on pass-through small businesses who file their taxes as individuals.
• The cost of energy will be another issue likely for 2026, as other New England states potentially reconsider their carbon reduction goals.
• Health insurance expenses will also be included as a major area of interest in 2026. NFIB will continue to remind lawmakers that small businesses often face out-of-control annual premium increases. This makes offering affordable coverage to workers near impossible.

NFIB will continue to provide legislative updates once bills begin to maneuver through the legislative process.