Governor McKee Pushes for Proposal to Create RI’s First Child Tax Credit

Published on Wednesday, April 01, 2026

Governor’s Child Tax Credit Would Deliver $30M in Relief to Rhode Island Families; Proposal is a Key Piece of Governor McKee’s Affordability for All Agenda, Delivering $215M in Relief in Year One

EAST PROVIDENCE, RI — Governor Dan McKee was joined by members of the RIght from the Start Coalition today at Littletrax Early Learning Center to highlight his Child Tax Credit proposal, part of the Affordability for All agenda in his proposed FY 27 budget. The Governor’s proposal would create a fully refundable, annual $325 tax credit per child.

“The rising cost of living is creating real hardships for families nationwide,” said Governor McKee. “While the Trump Administration’s policies have pushed the price of household goods to new levels at the same time that Congressional Republicans’ policies have slashed our country’s safety net, family budgets need real relief now—that's exactly what my child tax credit proposal delivers.”

While Rhode Island currently offers a dependent deduction, many low-and moderate-income families—who need the financial support the most—do not benefit because the deduction requires sufficient state income tax liability. Approximately 26 percent of filers with dependents have too little state tax liability to benefit, meaning over 30,000 families currently receive no benefit at all. The Governor’s proposal would convert the existing deduction to a new child tax credit that would support all Rhode Island families, delivering approximately $30 million in annual tax relief. If enacted, this would represent one of the most progressive tax policy changes in recent Rhode Island history.

“Federal policies are making it harder for Rhode Island families to keep up with an ever-rising cost of living,” said Josh McCabe, Director of Social Policy at the Niskanen Center. “Governor McKee’s proposed child tax credit is the bold, clear, and fiscally responsible reform that families need right now to make life more affordable in the Ocean State.”

“Governor McKee’s proposed Child Tax Credit is a needed investment in our state’s families,” said Lisa Hildebrand, Executive Director of the Rhode Island Association for the Education of Young Children. “This credit will provide relief to parents struggling with the high cost of raising young children, providing $325 to help cover essentials like diapers, formula, and child care costs. Many of our state’s early childhood educators are themselves parents of young children and would also benefit from the tax credit. This is a smart policy at a time when so many families are struggling to make ends meet.” 

“We hear from our parents all the time that the costs of raising young children can feel overwhelming,” said Andrea Furtado, Director of Littletrax Early Learning Center in East Providence. “A fully refundable state Child Tax Credit would give these families the extra resources they need to pay for expenses like food, housing, and child care. Every little bit helps when raising young children, and that's why the Child Tax Credit is such a smart investment in our state's families.”