AGP Executive Report

Data Center Policy Clash: Rhode Island lawmakers are weighing new data center tax incentives against proposals that require large operators to fund grid upgrades as AI-driven electricity demand accelerates, with New York’s permit pause adding pressure to get Rhode Island’s rules right. AI Adoption & Costs: Mozilla’s CTO says he’s switched to Chinese AI model Kimi K3 for day-to-day work, reflecting a broader U.S. trend toward cheaper, capable AI systems even as restrictions and sanctions loom. Energy Affordability: A Rhode Island energy expert warns gas prices could stay sky high into December, while the state’s winter electric rate fight continues amid political tension. Housing Market Update: Rhode Island home sales picked up in June, but buyers still face record prices and tight inventory, keeping affordability under strain. Public Health Watch: The FDA and CDC widened a cyclosporiasis investigation tied to shredded iceberg lettuce, while Rhode Island stores say they’re double-checking recalls. Health & Safety on the Ground: A Rhode Island Medical Journal study finds ambulance trips in the East Bay ran about a minute longer after the Washington Bridge closure. Community & Workforce: Rhode Island’s blood centers declared a supply emergency as summer trauma season ramps up and donations dip.

Data Centers & Power Costs: Rhode Island lawmakers are debating whether to lure AI-driven data centers with long-term tax breaks or require operators to help pay for grid upgrades, as New York pauses large-project permits while it sets new energy, water, and air-quality standards. AI Adoption: Anthropic’s lower-priced Claude Opus 5 is expanding options for Rhode Island users, but local businesses still flag training, implementation, and trust as the sticking points. Workforce Housing at Quonset: Quonset Business Park in North Kingstown will add 140 workforce apartments under a lease with Moran Properties—an early residential move since the former Navy base era. Construction Jobs: Construction employment in Rhode Island fell 1.8% year over year, according to an AGC analysis. Public Health & Food Supply: The FDA/CDC widened a cyclosporiasis investigation tied to shredded iceberg lettuce, while Rhode Island stores say they’re pulling any recalled lettuce and urging customers to wash produce. Blood Shortage: Rhode Island and Connecticut blood centers declared a blood emergency as summer demand rises and donations dip. Antitrust Watch (National): A coalition of states announced a $29.6M settlement with Glenmark over alleged generic-drug price inflation and trade restraints. Local Courts: A federal antitrust dispute has Nexstar (WPRI-TV) facing allegations it violated an order keeping Tegna independent, potentially affecting its stalled $6.2B expansion.

Cannabis Licensing Fight: Cranston investors say Rhode Island “erased” their $500,000 bid for the first adult-use retail cannabis store at a former Pizza Hut site, after the Cannabis Control Commission never issued a license—sparking a court fight over whether the state changed rules after approval. AI and Cost Pressure: A new wave of cheaper Chinese AI models is gaining ground in the U.S., and Rhode Island businesses are weighing adoption as options expand but trust and training costs remain hurdles. GLP-1 Access Gap: Medicaid cutbacks are leaving some Rhode Island residents without coverage for weight-loss GLP-1 drugs starting Oct. 1, adding to a national “haves vs. have-nots” divide. Public Health: The FDA/CDC widened a cyclosporiasis investigation tied to shredded iceberg lettuce, while Rhode Island grocers say they’re double-checking recalls and urging customers to wash produce. Housing for Workers: Quonset Business Park in North Kingstown will add 140 workforce housing units via a new lease with Moran Properties. Food & Safety: A Rhode Island Blood Center declared an emergency as inventories fell below a two-day level, urging donors. Local Crime: Pawtucket police and partners seized guns and drugs in a court-authorized search tied to a Providence investigation. Conservation: Oystercatchers are rebounding in Rhode Island through banding and a multi-state restoration effort.

Primary Care Push: A Massachusetts Senate bill would raise primary care’s share of health spending from under 7% to at least 15%, phasing in over three years starting in 2028—an approach Rhode Island health leaders have long argued is key to better outcomes. Public Safety & Courts: A Rhode Island appeals decision upheld denial of accidental disability retirement for a correctional officer, finding no qualifying duty accident and no legal link to the disability. Autonomous Driving Watch: IIHS says Waymo robotaxis crash 68% less than the average human driver, while noting important caveats about the data. Food Safety: The FDA/CDC widened a cyclosporiasis investigation tied to shredded iceberg lettuce from central Mexico, now involving nine states and nearly 2,000 reported infections; Rhode Island stores say they’re checking recalls and advising customers to wash produce. Workforce Housing at Quonset: Quonset Business Park will add 140 workforce housing units via a lease with Moran Properties, the first residential component at the former Navy base site. Health System Strain: Rhode Island Blood Center and Connecticut Blood Center declared a blood emergency as inventories fell below a two-day level during peak summer trauma season. AI in the Spotlight: Anthropic’s lower-priced Claude Opus 5 expands AI options for Rhode Island users, but local businesses still cite training, cost, and trust as hurdles.

Broadcast consolidation fight: Nexstar, owner of Providence’s WPRI-TV, has to respond to allegations it violated a federal order meant to keep Tegna independent, putting its stalled $6.2B expansion on hold as state AGs challenge further TV ownership consolidation. Housing for workers: Quonset Business Park in North Kingstown will add 140 workforce housing apartments under a lease with Moran Properties, the first residential component at the former Navy base site since decommissioning. Energy affordability pressure: Gov. Dan McKee declared a state of emergency over rising electricity costs and signed $28M in emergency relief as Rhode Island Energy seeks a 15% winter rate increase. Food safety watch: The FDA and CDC widened a cyclosporiasis investigation tied to shredded iceberg lettuce served at Taco Bell, now involving nine states; Rhode Island health officials say they’ve found no link so far. AI in the workplace: Anthropic released a lower-priced Claude Opus 5 aimed at business tasks, adding more options for Rhode Island users even as local firms cite training, cost, and trust barriers. Construction jobs: Rhode Island construction employment fell 1.8% year over year from June 2025 to June 2026, according to an AGC analysis. Local fishing event: Block Island’s inshore fishing tournament expands its species list and fishing area for July 25-26.

AI in the workplace: Anthropic’s lower-priced Claude Opus 5 is rolling out for Rhode Island users, giving businesses more options as costs and trust remain sticking points. Housing crunch: A new report says RI renters need $31.71 an hour to afford a typical two-bedroom—nearly double the $16 minimum wage—while another analysis shows renters’ affordability is worsening statewide. Quonset workforce housing: Quonset Business Park in North Kingstown will add 140 workforce apartments under a lease with Moran Properties, the first residential component at the former Navy base site. Electricity relief vs. rate hikes: Gov. McKee declared an energy affordability emergency and signed an order for $28M in winter bill credits, even as Rhode Island Energy seeks a 15% rate increase. Construction jobs: Construction employment in RI fell 1.8% year over year, underscoring ongoing labor pressure in the building sector. Food safety: The FDA/CDC widened a cyclosporiasis investigation tied to shredded iceberg lettuce, adding four states to the outbreak. Farm equipment support: PERC doubled compensation for Rhode Island farmers hit by severe weather, helping cover propane-powered equipment losses.

Energy Relief vs. Rate Hikes: Gov. Dan McKee signed an executive order for $28M in emergency winter electric bill credits for Rhode Island households, but Rhode Island Energy is also seeking higher winter supply rates and hasn’t fully answered how RGGI balances will be handled. PUC Heat-Pump Debate: At the Public Utilities Commission, advocates are pushing for heat-pump-specific delivery rates, arguing heat-pump users may be subsidizing non-heat-pump customers. Housing Affordability Pressure: A new “Out of Reach” report finds Rhode Island renters need about $33.95/hour to afford a two-bedroom, with market rents outpacing wages. Freight Rail Safety: McKee ceremonially signed “commonsense” freight train safety bills requiring at least two crew members on freight trains/light engines. Insurance Leadership: AIPSO named Les Willis president and CEO, with the group headquartered in Johnston. Life Sciences: Lilac Biosciences and Soin Neuroscience published a clinical review on RNA biomarkers for neuropathic pain. Workforce & Training: Newport Area Career and Technical Center students won a statewide Greenpower Electric Car Challenge using a self-modified all-electric vehicle. Business Moves: Compass closed on a Westerly home sale for $2.75M, while Schumacher Electric named Joseph Rainone CEO. Climate Rules in Court: Rhode Island is among states joining challenges to EPA rollbacks on hydrofluorocarbons (HFCs), chemicals used in refrigeration and cooling.

Energy Affordability: Gov. Dan McKee signed an executive order sending $28 million in emergency relief to help Rhode Island households absorb a double-digit winter electricity price spike, as Rhode Island Energy filed proposed higher winter electric rates with the Public Utilities Commission. Housing Costs: A new National Low Income Housing Coalition report says Rhode Island’s renter affordability problem is worsening—renters need about $33.95 an hour to afford a two-bedroom, even as the state minimum wage rose. Cannabis Licensing: A federal judge signaled she may undo a court order that had halted Rhode Island’s social equity and adult-use cannabis licensure after lawmakers removed challenged residency requirements. Workforce & Industry: Education Secretary Linda McMahon urged starting career “pathways” in elementary school toward trades like plumbing and electrical work to address labor shortages tied to fast-growing sectors. Transportation Safety: Rhodeode Island lawmakers signed bills requiring at least two crew members to operate freight trains or light engines, aiming to boost safety on delivery routes. Legal/Policy: Rhode Island joined a multistate coalition petition challenging EPA rules that weaken regulation of potent greenhouse gases (HFCs).

Climate & Public Opinion: New polling finds 61% of likely voters link extreme weather to the climate crisis, with Rhode Island Sen. Sheldon Whitehouse citing the results as “mountain of evidence” against “climate-hushing.” Local Infrastructure & Industry: Cranston’s new 17,500-square-foot industrial building at 109 Western Industrial Drive sold for $3.1M, signaling continued demand for warehouse and manufacturing space near I-295/I-95/Route 37. Municipal Stormwater Finance: Barrington abruptly paused plans for a stormwater enterprise fund and its proposed taxpayer fee, citing concerns about public appetite amid school-construction debt pressure. Rhode Island Energy & Jobs: Quonset Business Park is set to add 140+ workforce housing apartments with Moran Properties, tying housing supply to the state’s industrial growth. Agriculture & Pest Control: RIDEM is stepping up efforts to contain invasive spotted lanternflies, warning they threaten orchards and vineyards and spread via transportation hubs. Cyber & Consumer Risk: Chick-fil-A confirmed a data breach tied to credential-stuffing on its Chick-fil-A One loyalty accounts, exposing names, emails, membership numbers, QR codes, and partial payment details. Workforce & Benefits: A GAO report says gig and Amazon workers increasingly rely on SNAP and Medicaid, with Rhode Island among states providing data. Antitrust & Pharma: Rhode Island AG Jeff Jackson is part of a $29.6M Glenmark settlement over alleged generic drug price-fixing.

Workforce & Housing: Quonset Business Park will add more than 140 workforce housing apartments through a partnership with Moran Properties, with construction targeted for late 2027 and a portion reserved for low- and moderate-income residents. Local Infrastructure Finance: Barrington abruptly canceled its stormwater enterprise fund feasibility work, scrapping a planned taxpayer fee after concerns about public appetite amid other major costs. Food & Seafood Business: Mark Foods, a New York seafood importer, acquired Newport’s Endeavor Seafood, aiming to expand sourcing and supply while keeping key founders in place. Accounting Talent Pipeline: Rhode Island created a new CPA licensing pathway to address an accounting talent shortage, letting candidates qualify with a bachelor’s degree plus accounting coursework and two years of experience. Legal/Regulatory Watch: Rhode Island’s AG actions and broader state efforts continue to target federal rollbacks—especially on PFAS drinking-water limits and wind energy project freezes—while a multistate settlement with Glenmark targets generic drug price-fixing. Cyber & Consumer Risk: Chick-fil-A notified Rhode Island customers after a credential-stuffing attack potentially exposed loyalty account details. Agriculture & Environment: RIDEM is stepping up efforts to contain invasive spotted lanternflies, warning they threaten orchards and vineyards.

World Cup boost for Rhode Island businesses: Providence leaned into tournament hype with a nonprofit, a downtown trolley, and Bryant University as Ghana’s base, landing an estimated 125,000 visitors in the city’s Fan Zone and lifting June hotel occupancy to about 75%. Port and logistics pulse: At the Conley Terminal in Massachusetts, crane operators and port officials describe how container traffic—imports and exports including Rhode Island seafood—keeps New England’s economy moving. Local business pressure points: Pawtucket’s Harmony Dog Training faces a suspended operating license tied to resident complaints over barking/odors and zoning distance rules, with a Sept. 10 hearing set. Retail tech and pricing fights: A New York proposal would require self-checkout users to get a 10% discount, echoing similar debates in Rhode Island and other states. Food industry earnings: Cal-Maine Foods reported sharply lower fourth-quarter and fiscal 2026 results amid major sales and profit declines. Construction and infrastructure: RIDOT plans a July 31 I-95 South traffic shift at the Route 4 interchange for the “Missing Move” project, including work near Quonset Business Park. Legal and regulatory watch: Rhode Island’s warranty reimbursement law moves toward paying dealers based on actual technician time, and a broader national debate continues over AI pricing and hiring compliance risks. Energy and climate litigation: Multistate actions challenge EPA rollbacks on hydrofluorocarbons, with attorneys general arguing the changes raise emissions. Local public safety: URI added two 2026 Harley-Davidson police motorcycles for campus traffic enforcement and escorts. Housing politics: Providence’s mayoral debate spotlights rent stabilization vs. expanding housing supply, with Morales pushing tenant protections and Smiley citing new unit creation.

Rhode Island infrastructure: RIDOT will shift all traffic to the right on I-95 South at the Route 4 Interchange on July 31 at 9 p.m. as part of the $144 million “Missing Move” project, with lane changes designed to speed drainage work and build the northern pier for a new flyover bridge; the plan also includes major upgrades around Quonset Business Park in North Kingstown. State politics & housing: In Providence’s mayoral debate, incumbent Brett Smiley and challenger Rep. David Morales clashed over rent stabilization versus expanding housing supply, with both sides pointing to different paths to affordability. Healthcare policy: Gov. Dan McKee signed legislation creating a framework for veterinary telemedicine in Rhode Island, aiming to expand access to care for pet owners who can’t afford in-person visits. AI in healthcare: Rhode Island’s new “Use of Artificial Intelligence by Healthcare Providers Notification Act” took effect June 16, requiring patient notice when AI is used to document visits and requiring providers to review AI-generated notes for accuracy. Climate & regulation fight: Rhode Island officials joined broader multistate legal action challenging EPA rollbacks tied to hydrofluorocarbons (HFCs), arguing the changes delay phase-outs and increase greenhouse pollution. Public safety: A Rhode Island attorney general race update: Keith Hoffmann launched his first TV ad in the contest, highlighting his endorsement from AG Peter Neronha and his record in consumer and civil rights work. Business & jobs: Washington Trust reported stronger Q2 results, citing growth in commercial lending and wealth management alongside continued expansion of Rhode Island branches.

Healthcare Contract Fight: UnitedHealthcare and Brown University Health are again at odds over Medicare Advantage reimbursement and prior authorization, leaving about 1,900–2,000 Rhode Islanders without in-network access to Brown physicians. Offshore Wind Legal Pressure: Rhode Island AG Peter Neronha and other states are preparing to sue the Trump administration over offshore wind lease cancellations and related actions, with lawmakers and advocates arguing projects are key to grid reliability and local business. Seafood Innovation: Rhode Island is part of a $15M NSF “Seafood Engine” effort to modernize New England commercial fishing, aquaculture, and seafood processing with new tech and workforce development. Banking & Local Business: Washington Trust reported stronger Q2 results, while BankFive VP Scott Correia earned a Providence Business News 40 Under Forty award. Conservation & Coastal Economy: Oystercatchers are rebounding in Rhode Island and across the region after a decade-plus, multi-state conservation push. Energy Costs at the Pump: Gas prices in the region are climbing back above $4 as crude oil rises amid renewed U.S.-Iran tensions. Public Health & Pets: Gov. McKee signed a law creating a framework for veterinary telemedicine in Rhode Island.

Telemedicine for Pets: Gov. Dan McKee ceremonially signed Rhode Island legislation creating a framework for veterinary telemedicine, requiring RI-licensed vets, client consent before an electronic vet-client-patient relationship, and one-year consent recordkeeping. Banking & Local Economy: Washington Trust Bancorp reported Q2 2026 net income of $16.0 million, citing strong execution, loan and deposit growth, and higher wealth and mortgage banking revenues. Life Sciences Jobs: Nabsys, a Providence life sciences company, plans to move headquarters to 225 Dyer St. and add 200+ jobs, targeting a summer 2027 move. Energy & Legal Fight: Rhode Island leaders and AGs continue pushing back on federal actions affecting wind projects, including offshore wind lease challenges and onshore wind review freezes. Food Prices: Giant Eagle joined other grocers cutting prices on thousands of items this summer as consumers feel food-cost pressure. Conservation in RI: Biologists band American oystercatchers at Trustom Pond National Wildlife Refuge as part of a multi-state effort to restore a species that rebounded after near disappearance in New England. Construction/Industry: ENR East Top Contractors coverage highlights Johnston-based Dimeo Construction’s outlook amid office and life sciences softness, while noting revenue growth. Utilities Reliability: Rhode Island Energy says it fully repaired the submerged Newport-to-Jamestown cable, with backup power preventing customer interruptions.

Life Sciences Jobs: Nabsys plans to move its Providence headquarters to 225 Dyer St., adding 200+ jobs and consolidating manufacturing and R&D in a 30,000-square-foot space slated for summer 2027. Public Health & Regulation: Rhode Island is reopening the door to kratom sales under a 2017 ban reversal, as officials review applications to manufacture, import, and distribute products—while medical groups warn about abuse risks. Infrastructure Delivery: Rhode Island could soon use federal highway funds for advanced digital tools to speed road and bridge repairs, aiming to cut delays tied to older, paper-heavy project processes. Food Safety Update: The FDA withdrew an earlier Cyclospora-positive lettuce finding tied to Taylor Farms, but the recall remains active as investigators continue tracing contamination. Consumer & Fraud: R.I. AG Anthony G. Brown announced a $45M multistate Cash App settlement over alleged fraud protections failures and misleading security claims. Workplace Safety: A Florida firefighter hazing case involving a modified bug zapper highlights ongoing scrutiny of misconduct and discipline processes. Local Business: Union Station Brewery in Providence closed after more than three decades, citing tough margins and staffing challenges. Manufacturing Supply Chain: APPLIED Adhesives acquired Westerly-based ISD, expanding silicone and adhesive solutions for aerospace and manufacturing customers. Energy & Policy: Rhode Island AG Brown co-led a challenge to EPA actions targeting affordable clean energy for low-income households. Seafood Innovation: The NSF Seafood Engine in New England won a $15M award to modernize the seafood supply chain across Maine, Massachusetts, New Hampshire, and Rhode Island.

Energy & Cost Pressure: Renewed U.S.-Iran fighting is pushing oil prices higher, with major oil firms raking in about $30 million per hour in excess profits—fueling fresh momentum for Rhode Island Sen. Sheldon Whitehouse’s windfall-tax idea. Manufacturing & Supply Chain: APPLIED Adhesives (Westerly) is expanding its East Coast footprint by acquiring Industrial Sales and Distribution Inc., a long-time adhesives and silicone distributor serving aerospace and manufacturing. Local Business & Growth: Rhode Island’s economy may be edging out of recession, with URI economist Leonard Lardaro pointing to improved retail sales and manufacturing hours in the latest monthly read. Clean Energy Policy: Offshore wind faces new legal and political headwinds as states prepare to challenge Trump administration payoffs tied to canceled projects. Seafood Innovation: The NSF Seafood Engine in New England won a $15M award to strengthen fisheries and aquaculture across Maine, Massachusetts, New Hampshire, and Rhode Island. Workforce & Jobs: A Boston Fed report finds small businesses drive most net job creation in New England, underscoring their role in local hiring. Community Support: The Rhode Island Energy Foundation announced $250,000 in grants to 15 nonprofits through its Empowering Communities program. Housing & Planning: Narragansett is starting its comprehensive plan update process, with housing and long-range development decisions expected to follow. Water Infrastructure: The bipartisan WRDA 2026 cleared a key Senate committee step, setting up more funding for drinking water, wastewater, flood risk, and ecosystem restoration. Tech & Risk: EY disclosed a data breach tied to a third-party IT service platform used by its tax practice, involving client tax documents. Legal & Public Safety: A federal appeals court struck down New Jersey’s assault-weapons and large-magazine bans—an outcome likely to reverberate in Rhode Island.