McKee administration lifts state agency spending, hiring restrictions after improved fiscal outlook

By: Nancy Lavin

Outlets: Rhode Island Current

Published: March 20, 2026

Words: 882

Last Updated: 18 hours, 44 minutes ago

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Rhode Island state government’s bleak fiscal outlook hasn’t improved much since a July 18, 2024 memo ordering agencies to cut back on non-critical spending and hiring.

In fact, the long-term picture looks worse, with state budget officials now projecting a $537 million deficit by 2031 due to federal funding cuts under the One Big Beautiful Bill Act.

McKee praised FY25 budget for ‘smart investments.’ But memo warns of deficits on …

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