Rhode Island Governor Dan McKee signed H 7163 on June 18, 2026. The legislation requires both the Rhode Island General Assembly and the governor to approve any state effort to opt into the federal Education Freedom Tax Credit (EFTC) program.

Under H 7163, state participation in the EFTC is conditional on the legislature passing a bill that the governor signs. The bill itself does not indicate whether Rhode Island will participate in the EFTC. "Major decisions with long-term consequences for our students, schools, and taxpayers deserve thoughtful consideration and agreement among Rhode Island's elected leaders," McKee said. "This legislation ensures that participation in this program will be made deliberately and collaboratively."

"I remain deeply concerned about the program itself," McKee said. He added, "Should future federal guidance allow funds to be used exclusively for purposes such as after-school tutoring, transportation, and educational technology—without supporting private school tuition or voucher-equivalent programs—I would be willing to work with the General Assembly to evaluate participation under those limited circumstances."

The U.S. Department of Treasury is responsible for establishing rules for the EFTC program's implementation. On June 10, 2026, the Treasury previewed rulemaking for the EFTC and indicated it would address eligible expenses through subsequent guidance. The enacted EFTC program defines eligible expenses by cross-referencing those for Coverdell Education Savings Accounts, which include tuition at private elementary and secondary schools.

H 7163 passed the Rhode Island House of Representatives 57-13 on June 10, 2026. In the House, 56 Democrats and one Independent supported the bill, while five Democrats and 10 Republicans opposed it. Five Democrats did not vote. The Rhode Island Senate passed H 7163 34-4 on June 11, 2026, with all Democrats in the Senate supporting the bill and all Republicans opposing it.

Rhode Island is the first state with a Democratic trifecta to pass a law regarding the EFTC. Six states with a Democratic trifecta have already opted into the program, along with five states with divided governments and four Republican trifecta states. In total, 37 states have indicated they will participate in the EFTC program, which will take effect on January 1, 2027.