The Rhode Island House of Representatives approved a $14.3 billion state budget for fiscal year 2026 on Tuesday night, passing the measure in just over three hours by a vote of 66 to 9.
The budget addresses an expected $185 million deficit and potential reductions in federal funding, while introducing a new increase to the state’s gas tax beginning July 1.
A 2-cent per gallon hike, combined with a previously scheduled 1-cent increase and a 1-cent environmental protection fee, will bring the state gas tax to 41 cents per gallon. With the federal gas tax of 18.4 cents added, Rhode Island drivers will pay nearly 60 cents in taxes per gallon of fuel.
That will make Rhode Island’s gas tax the 10th highest in the country, according to the latest comparisons:
1. California – 69.8 cents
2. Illinois – 67.1 cents
3. Pennsylvania – 58.7 cents
4. Indiana – 54.3 cents
5. Washington – 53.0 cents
6. Connecticut – 51.4 cents
7. Michigan – 46.8 cents
8. Maryland – 46.3 cents
9. New Jersey – 45.0 cents
10. Rhode Island – 41.0 cents
By comparison, Massachusetts drivers pay just 27.4 cents per gallon in state taxes. The national average is 33 cents.
Supporters of the budget say it makes important investments in infrastructure and services while closing funding gaps. Opponents argue that tax increases will hit working families hardest, particularly as gas prices remain volatile.
The budget now heads to the Senate for consideration.
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