Federal Government Rollbacks, Pauses, Politics & State Deficit
State Facing Potential $300M Shortfall
Local officials and residents are talking daily at the coffee shops and in meetings, about the future of funding for a new George Washington Bridge and other infrastructure projects and social programs possibly in danger. With President Trump ordering a halt to previously approved congressional spending, Rhode Island officials are concerned with the status of the Washington Bridge demolition and its planned rebuild. In a January 10, 2025 report, the Rhode Island Public Expenditure Council (RIPEC) examined the state’s financial outlook ahead of the FY 2026 budget process. RIPEC’s report explored the magnitude and causes of the state’s projected funding gap for FY 2026 and analyzed the major drivers of the deficit. The report finds that the funding gap, identified by the state budget office in October 2024 as having ballooned to nearly $400 million, is now approximately $300 million as a result of projected revenue and expenditure adjustments determined at the state’s November Estimating Conferences (RIPEC report).
“While the financial outlook for the FY 2026 budget has improved, the projected funding gap of about $300 million is very problematic, representing more than five percent of the current level of state spending,” said Michael DiBiase, President and CEO of RIPEC. “After years of abundant federal funding and large state surpluses, the governor and General Assembly must now closely evaluate spending to bring expenditures in line with available resources.”
Key Findings from the January 2025 RIPEC Report:
“The FY 2026 deficit of $398.2M projected by OMB in October 2024 improved considerably as a result of updated revenue and caseload projections; the deficit is now estimated at approximately $297.8M. The projected FY 2026 deficit primarily results from the use of substantial one-time revenues from surplus and federal funds to pay for recurring expenses in the FY 2025 budget State general revenue spending increased by $1.67B between FY 2019 and FY 2025—an average annual increase of 7.1%. This increase occurred during a period of high inflation, but if general revenue spending had grown at the rate of inflation, it would have increased by $878.9M, a difference of $791.9 million. Spending on health and human services comprise 38.8% of total FY 2025 general revenue spending and is growing at a faster overall rate than state revenues. Expenditures in this area are driven largely by Medicaid spending, which is projected to grow by about 6.5% for FY 2026, despite modest increases expected in Medicaid enrollment.
Driven largely by inflationary factors used in the school funding formula, state spending on K-12 education has grown rapidly over the past few years and is projected to outpace the growth of general revenues in FY 2026 (4.6% vs. 2.5%). Despite this, urban core districts have received a smaller proportion of additional state funding since FY 2021 (50.9%) than during the previous ten years (59.3%).
Personnel expenses are a significant contributor to the projected budget deficit as a result of COLA increases not funded in the FY 2025 budget, but personnel spending still makes up a smaller proportion of state spending in FY 2025 than FY 2019 (23.8%vs. 25.2%) and is not projected to exceed the rate of revenue growth. Rhode Island earned an honorable mention by a national group for its use of evidence-based policymaking tools, but it is difficult to determine the extent to which evidence-based policymaking is used to inform funding decisions.
Major RIPEC Recommendations Going Forward
City Council looks at Local Ramifications
“I have asked the City Council and city administration to be very cognizant of the looming state budget deficit. We also can’t ignore the current federal appetite for curtailing infrastructure and social program funding for cities and towns,” said East Providence City Council President Bob Rodericks. “I am confident that as of today, we are fiscally sound, but we need to remain very vigilant going forward.” The council has begun the discussion of budget needs early in the fiscal year. “I have stressed many times that all of the improvements and projects being seen in our city have been funded primarily by state and federal grants and awards. The administration has done a good job with this to date. I am confident that together with Mayor DaSilva, our city staff and our School Committee and their administration, we will carefully craft our next budget based in reality.”
Improper Recycling Costing EP Residents Tens of Thousands
The City of East Providence is urging and warning residents to be more mindful of their recycling habits and their detrimental impact on both the environment and their own wallets. In 2024, the City of East Providence had more than 2 million pounds of rejected recyclable waste, all of which ended up being dumped in the landfill, costing East Providence taxpayers $91,264.92.
To deter residents from improperly recycling, East Providence will be issuing violations to those who have plastic bags and other non-recyclable items found in their bins. Violations carry a minimum fine of $50. “While most of this recyclable waste was properly managed, if just 10% of the load is contaminated it causes the entire load to be rejected, costing our taxpayers tens of thousands of dollars,” said a city press statement.
Since 2021, East Providence taxpayers have paid more than $200,000 in fines and violations for rejected loads caused by improper recycling.
“Our administration has addressed improper recycling as an education issue. We have sent out information to our residents about proper recycling while also previously enforcing and issuing violations,” Mayor Bob DaSilva said. “These latest numbers are absolutely shocking. Taxpayers, have paid $91,000 in extra fees and fines because there are people in our community not properly recycling.” The City will be embarking in a much more rigorous enforcement effort to ensure people who are contaminating their recycling waste and costing all of the taxpayers tens of thousands of dollars are held accountable,” DaSilva added.
If a load is deemed contaminated, Rhode Island Resource Recovery assesses a $250 equipment use/handling charge to process the materials, which are then transported over to the landfill and billed at the tipping fee the city pays for disposing of trash. This is costing the city thousands of dollars each year.
Please recycle ONLY the following in your bin:
Paper, cardboard, and cartons:
That's it - no other fiber products. For example, wood and textiles are made from natural fiber but they aren't paper, cardboard, or cartons, so they don't belong in your bin or cart. Paper and cardboard should be mostly clean and dry (a little grease on a pizza box is OK) and be flattened. Cartons must be emptied at a minimum and rinsed whenever possible. Place plastic tops back onto cartons prior to recycling.
No shredded paper, and no napkins, tissues or paper towels.
Metal cans, lids, and foil:
That’s it - no other metal. For example, a metal frying pan is not a can, lid, or foil, so it doesn’t belong in your bin or cart. Containers must be empty at a minimum and rinsed whenever possible. Foil should be clean and bunched up.
Glass bottles and jars:
That’s it - no other glass. For example, a drinking glass is not a bottle or jar, so it doesn’t belong in your bin or cart. Containers must be empty at a minimum and rinsed whenever possible. Remove metal tops from glass bottles and jars first, and recycle them separately.
Plastic containers:
That’s it - no other plastic. For example, a plastic coat hanger is not a container, so it doesn’t belong in your bin or cart. Containers must be empty at a minimum and rinsed whenever possible. Place plastic tops back onto containers prior to recycling.
No foam containers, or plastic containers that once held flammable materials or oily chemicals like gasoline, motor oil, antifreeze, pesticides or herbicides. No plastic bags, bags of bags, or recycling inside of bags!
Please refer to the City of East Providence’s website for questions about improper recycling: https://eastprovidenceri.gov/departments/recycling/improper-recycling .
Rhode Island Infrastructure Bank Awards EP $500,000 in Stormwater Improvements
The $500K grant is for Greenwood Avenue Stormwater Management. Stormwater and drainage improvements are needed along Greenwood Avenue to increase stormwater capacity and mitigate localized flooding affecting local employers and residential developments. Projects receiving MIGP awards include public park upgrades, stormwater and sewer improvements, feasibility studies for drinking water infrastructure, and infrastructure upgrades to support housing development.
“We’re pleased to award $3.3 million in Municipal Infrastructure Grant Program awards to 12 projects in 11 cities and towns across Rhode Island,” said William Fazioli, Executive Director of Rhode Island Infrastructure Bank. “From public park upgrades in Warwick and Providence, to stormwater improvements in East Providence and eleven communities in total. Our assets are meant to be put to work to meet the infrastructure needs of our cities and towns, not accumulated. And that is exactly what we've done with this round of Municipal Infrastructure Grant Program awards.”
“I am very grateful to the Rhode Island Infrastructure Bank for supporting this much-needed stormwater and drainage improvement along Greenwood Avenue,” Mayor Bob DaSilva said. “This funding will help mitigate localized flooding in this part of our city and positively impact both our local employers and residential developments.”
Mayor DaSilva issues local Diversity Proclamation
East Providence Mayor Bob DaSilva has issued his own administrative executive order on diversity following President Donald Trump’s federal order on halting policies which support diversity, equity, and inclusion (DEI). The Presidential missive of January 21, 2025, states in part: “It is the policy of the United States to protect the civil rights of all Americans and to promote individual initiative, excellence, and hard work. I therefore order all executive departments and agencies (agencies) to terminate all discriminatory and illegal preferences, mandates, policies, programs, activities, guidance, regulations, enforcement actions, consent orders, and requirements. I further order all agencies to enforce our longstanding civil-rights laws and to combat illegal private-sector DEI preferences, mandates, policies, programs, and activities,” reads part of the order. President Trump further stated “Within 120 days of this order, the Attorney General and the Secretary of Education shall jointly issue guidance to all State and local educational agencies that receive Federal funds, as well as all institutions of higher education that receive Federal grants or participate in the Federal student loan assistance program…”
Many who support the goals of Affirmative Action were upset that the President’s order came at a time when the nation was honoring the life and accomplishments of Dr. Martin Luther King, civil rights icon who was assassinated. As the city of East Providence was holding its celebration of the King federal observance day, Mayor DaSilva issued his own administrative order. In a press release dated January 22, 2025, DaSilva stated: “In response to President Donald J. Trump’s Executive Order aiming to end diversity, equity and inclusion programs within the federal government, Mayor Bob DaSilva signed a proclamation during Wednesday’s Dr. Martin Luther King Jr. Commemorative Program affirming the city’s commitment to supporting these programs and the residents of East Providence. WHEREAS, The Administration and the City of East Providence is a welcoming community which embraces diversity; and WHEREAS, The Administration supports diversity, equity, inclusion and accessibility in our workforce and throughout our community; and WHEREAS, The City currently addresses and mandates diversity in our personnel code and affirmative action ordinance; … THEREFORE, I, Mayor Roberto L. DaSilva, on behalf of the City of East Providence, reaffirm Diversity, Equity, Inclusion & Accessibility in the City of East Providence.”
DaSilva noted that his administration, through several Executive Orders, has previously “established the Mayor’s Advisory Council on LGBTQI+ Affairs, the Mayor’s Community Advisory Board and a Mayor’s Advisory Council on Indigenous Affairs, all to advocate for a culture of respect and progress toward equality.”
New City Firefighters Sworn In
After the recent hiring of several new police officers, East Providence has now added 12 new firefighters to the Fire Department thanks to $3.75 million in federal funding through the Staffing for Adequate Fire and Emergency Response (SAFER) grant program. A public swearing-in ceremony was held in the high school in January.
Following the completion of their 12-week, entry-level training program at the Rhode Island Fire Academy (concluding November 15, 2024), the probationary firefighters are now certified in Firefighter I and II, Fire Apparatus operation, and aerial operation. The probationary firefighters then had an additional nine-week training period through the Municipal Academy.
Congressional, state and local officials attended the ceremony along with dozens of families and friends. “We are immensely grateful for the work our firefighters do each and every day to serve our communities and keep us safe. Full staffing at our fire stations is critical to ensuring that firefighters can quickly, safely, and effectively respond to emergencies and protect our communities,” U.S. Senator Jack Reed said. “I’m proud to welcome these 12 new firefighters to the ranks here in East Providence, and I will continue to support the SAFER program and other sources of funding that provide critical support to first responders across our state.”
“As we celebrate the 36th graduating class of the East Providence Firefighter Training Academy, I am grateful for the 12 new firefighters who have answered the call to keep our community safe,” Congressman Gabe Amo said. “I’m proud to join my delegation colleagues in showing our appreciation by securing federal funding through the SAFER grant program to support fire departments throughout the Ocean State.”
"This past week at my State of the State Address, I talked about passionate Rhode Islanders who love their state and want to give back. The 12 firefighters here today certainly fit that definition, and we are all proud of their commitment to serve and to protect their families, friends, neighbors, and community here in East Providence," Governor Dan McKee said.
“The residents of East Providence are fortunate that through the SAFER grant, we now will have 12 highly trained individuals ready to respond at a moment’s notice to medical and other emergencies to keep our residents safe,” Mayor Bob DaSilva said. “I am very grateful to Senators Reed and Whitehouse, Congressman Amo, and Chief Carey for making this funding available. “Chief Carey’s diligent work on the grant application ensured we had the funding to hire these new firefighters,” DaSilva added.
“I extend my sincerest congratulations to these individuals upon reaching this significant milestone,” Chief Michael Carey said. “Their training and subsequent appointments to crucial first-responder positions have adequately prepared them for the challenges inherent in firefighting and emergency response, enabling them to best serve the residents of East Providence.”
Also greeting the new firefighters were city council members Bob Rodericks, Frank Rego, RI Secretary of State Gregg Amore, State Senator Robert Britto, State Representatives Jenny Furtado and Matt Dawson. The following were sworn in and officially joined the East Providence Fire Department on January 18, 2025: Domenic Amitrano, Kurtis Anderson, Danielle Clarke, Nathan Correia, Alexandre Ferreira, Michael Glidden, John Haxton III, Brian Monteiro, Kevin Rancourt, Matthew Ricci, Tanis Tavernier and Neil Teirney.
Cold Spell Brings Temporary Warming Shelter to City
The City of East Providence is partnering with the Rhode Island Coalition to End Homelessness, East Bay Community Action Program and Crossroads Rhode Island to open an overnight warming shelter, as temperatures plummeted to dangerous levels in January. With the state slow to develop adequate overnight shelters, East Providence Mayor DaSilva moved to put together a temporary warming center at the city Senior Center building at 610 Waterman Ave., East Providence. It was open from 7 PM to 7 AM, giving unhoused residents of the City, as well as those without heat an opportunity to take shelter and stay warm. “In these frigid conditions, the administration is committed to ensuring our residents have a warm and safe place to go,” Mayor Bob DaSilva said. “Therefore, we have decided to open a warming shelter at the Senior Center to provide care and comfort to those in our community in most need.”
“The Coalition applauds the Dedicated Staff from the City for their quick response to the weather emergency and their commitment to serve people experiencing homelessness in their community," Jennifer Barrera, Chief Strategy Officer for Rhode Island Coalition to End Homelessness said. “Our wish is that all Rhode Island cities and towns can emulate these lifesaving efforts.”
"East Bay Community Action Program is pleased to support the City’s efforts to address the urgent need for shelter for community members who are unhoused," Rita Capotosto, Vice President of Family Development for EBCAP said. "We will provide food; other critical supplies such as blankets, sleeping bags and hygiene supplies; and help to connect individuals who are unhoused with all available local and state resources including enrollment in the state’s Coordinated Entry System and recovery and health services as needed."
“I am grateful for the administration’s effort to do something in this dangerous weather,” said City Council President Bob Rodericks. “I was present for a while during the shelter’s first night and although only two people came, a local young couple, the center was warm, staffed and inviting,” added Rodericks. “I was impressed with Veteran Services and Community Health Coordinator Andrea Vargas for organizing the center with little time to plan. Vargas quickly and efficiently ran the program. Volunteers and supplies were quickly arranged,” he added. Also staffing and helping to coordinate the effort is Senior Center Director Laura Jones, Recreation Director Diane Sullivan and Mayoral Chief of Staff Patricia Resende. Members of the East Providence police and East Providence Emergency Management Agency were also present.
Overnight shelter space is limited and will be offered on a first-come, first-serve basis. Those planning on utilizing the overnight shelter must sign in and be present between the hours of 7 PM-8:30 PM. The center is temporary, and its operational hours will be announced as dangerous weather may require.
Lt. Governor and RI Office of Veterans Services give Seminar at Rock Senior Center
Lt. Governor Sabina Matos headlined a program which offered seminars and presentations on available senior citizen services to the community last month. The RI office of Veterans Services and other state agencies offered advice on dealing with identity theft and other matters of fraud affecting residents. Important information and handouts were made available to everyone and a vibrant question and answer period spent a lot of time on the recent statewide identity theft problem and also methods to avoid credit card fraud, etc.
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