Controversy Erupts Over Allocation of $11 Million Settlement in Rhode Island

Jun 16, 2025 at 7:59 PM
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A heated debate has emerged in Rhode Island concerning the allocation of an $11 million settlement stemming from contamination during a major highway interchange construction project. Attorney General Peter Neronha advocates for directing most of the funds towards a private foundation focused on pediatric dental care for underprivileged children in Providence. In contrast, House Republicans argue that such decisions should be within the purview of the state legislature and have proposed their own plan distributing the funds among various organizations. The disagreement centers less on the causes themselves but more on who holds the authority to decide how the money is spent.

The Battle Over the Barletta Settlement Funds

In the heart of a legislative showdown, Rhode Island finds itself embroiled in a dispute over the rightful allocation of an $11 million settlement reached with Barletta Heavy Division Inc., following allegations of environmental contamination during the Route 6/10 Interchange construction. Attorney General Peter Neronha champions a proposal to channel $10 million into a privately administered fund aimed at addressing severe oral health issues among low-income children in Providence, managed by the Rhode Island Foundation. However, Republican lawmakers Brian Newberry and George Nardone contest this plan, asserting that it breaches state law which mandates that settlement proceeds be deposited into the general fund controlled by legislators.

Newberry and Nardone unveiled an alternative plan allocating $1 million each to 11 different groups, including organizations dedicated to economic progress, children's welfare, education scholarships, women’s rights, and environmental conservation. Their strategy involves presenting this as an amendment to the fiscal year 2026 budget, hoping for support from fellow legislators ahead of the formal debate scheduled for Tuesday afternoon.

Neronha defends his stance, citing precedent where former Attorney General Peter Kilmartin decided on the allocation of settlement funds from a lawsuit against Volkswagen. He accuses the Republican duo of inaction regarding critical issues like pediatric dental care, emphasizing his office's constitutional power over litigation as upheld by the Rhode Island Supreme Court.

From a journalistic perspective, this controversy underscores the delicate balance between executive discretion and legislative oversight in managing public funds derived from legal settlements. It raises important questions about the role of elected officials in ensuring that settlement monies are utilized effectively to address pressing societal needs. As the debate unfolds, it will be crucial to observe whether collaborative solutions can emerge or if partisan lines will harden further, potentially impacting future settlement allocations in the state.