Governor Healey and Lieutenant Governor Driscoll Release $16.6 Billion Capital Investment Plan for Fiscal Years 2026–2030
Five-Year Plan Funds Housing Production, Supports Municipal Infrastructure, Increases Economic Competitiveness
BOSTON – The Healey-Driscoll Administration today released its Capital Investment Plan (CIP) for Fiscal Years 2026–2030, investing $16.6 billion in state resources over five years to increase housing affordability, fund economic development programs, and improve transportation and public infrastructure across the state.
The CIP includes over $3.2 billion in spending during Fiscal Year 2026 (FY26), a $110 million increase over FY25, with new growth focused on production and lowering the cost of housing and implementing the Administration's landmark economic development legislation, the Mass Leads Act, to drive innovation, create jobs, and support rural and regional development initiatives.
“Our capital plan focuses on smart, fiscally responsible investments to make Massachusetts more affordable, more competitive, and create more jobs,” said Governor Maura Healey. “These investments will help us build more housing to lower costs, fix our roads and bridges, and grow our lead in cutting edge industries like applied AI. Since taking office, our capital investment strategy has been to put every dollar toward making our state more affordable, equitable and competitive for everyone who lives and works here, and the targeted investments in this year’s plan build on our success and will have a real impact for our people.”
“Over the last two fiscal years, our administration’s capital funding has enabled transformative projects and programs that equip municipalities to thrive in every region of Massachusetts,” said Lieutenant Governor Kim Driscoll. “With support for over 70 community grant programs, totaling $750 million each year, and critical funds to improve municipal infrastructure, the FY26-FY30 CIP reinforces our ongoing commitment to partnering with cities and towns to ensure healthy and vibrant communities for residents.”
Since taking office, the Healey-Driscoll Administration has increased capital funding for housing by 71 percent and created new programs including HousingWorks, the largest and most flexible capital source for public infrastructure projects that support and accelerate housing production, spur private development, and create jobs. The CIP further advances the Administration’s housing efforts with a $2.34 billion investment over five years, growing the overall portion of the CIP dedicated to housing from nine percent when the Healey-Driscoll administration took office to 14 percent today. The Administration’s FY26 CIP funding will drive down the cost of housing in Massachusetts by supporting the creation of over 6,000 new units.
In this capital plan the Administration continues making long-overdue investments in Massachusetts's transportation infrastructure, ensuring that residents in every region of the state have access to safe and efficient transit. The CIP provides funding to repair and replace critical infrastructure, improve public transit safety and reliability, and equip municipalities to meet local transportation needs. Over FY26-FY30, the state will provide $1 billion in Chapter 90 funds to municipalities to improve local roads and bridges. The CIP furthers the Administration's commitment to replacing the Cape Cod bridges, with $104.6 million in FY26 ($527.6 million in FY26-FY30). Specifically, in FY26 and FY27, MassDOT plans to conduct the design, permitting, right-of-way, and utility relocation processes for the Sagamore Bridge and to advance the design process for the Bourne Bridge. The capital plan also includes $61.2 million in reliability and modernization-oriented spending for the state-owned rail system, $59.0 million for pavement improvements on the National Highway System, and $52.8 million for regional transit authorities (RTAs) and local transportation providers. To improve connectivity, the Administration is also investing $31.5 million over FY26-FY30 in West-East Rail, and approximately $1.14 billion in the MBTA, which includes funding to improve station accessibility and support procurement of new Red Line, Orange Line, and commuter rail vehicles.
The capital plan fosters opportunity and helps to sustain Massachusetts’s high-growth economy with $1.5 billion in funding for the Executive Office of Economic Development (EOED) over five years. The FY26–FY30 CIP provides $251 million to support implementation of the Mass Leads Act and expand initiatives that reinforce Massachusetts’s leadership in innovation. Included in these funds is $57.5 million for the Massachusetts Clean Energy Center (MassCEC)—promoting job creation and workforce development through deployment of climate technologies—and $28 million for the Mass Impact program, which invests in large-scale infrastructure improvements and initiatives that revitalize underserved communities. The FY26-FY30 CIP also unlocks new development in communities across the state through $657 million to support development and infrastructure improvements in municipalities.
The Administration is continuing to prepare Massachusetts for increasing extreme weather challenges. The FY26–FY30 CIP leverages federal partnerships via the Clean Water Trust to invest $671.5 million in clean water and clean drinking water. It also includes $129.5 million to Municipal Vulnerability Preparedness (MVP) program to prepare and towns for floods, extreme heat, and coastal erosion with grants for community-led infrastructure projects.
The CIP also provides resources to maintain, modernize, and decarbonize Massachusetts’s capital assets, which include over 1,700 buildings, over 4,000 bridges and tunnels, and 450,000 acres of public space. It includes more than a $1.0 billion to address deferred maintenance that will extend asset life, minimize future costs, and maximize building efficiency so that government can better meet the needs of Massachusetts’ residents.
The plan also continues to advance key projects, including new Veterans Homes in Chelsea and Holyoke, major court projects in Springfield, Framingham, Quincy and Lynn, and the rehabilitation of MCI-Framingham, the nation’s oldest operating women’s correctional facility.
“This capital plan is responsible and sustainable while still making major investments in the state’s people, our economy, and our future,” said Administration and Finance Secretary Matthew J. Gorzkowicz. “There is a great need for capital resources across Massachusetts, and our FY26-FY30 CIP carefully balances the state’s financial constraints with strategic spending on projects and programs that make a real difference for communities.”
“The Healey-Driscoll Administration’s five-year Capital Investment Plan is a roadmap to a stronger and more resilient Commonwealth,” said Transportation Secretary and CEO Monica Tibbits-Nutt. “With $16.6 billion in strategic investments, we are laying the foundation for generational change—advancing affordable housing, modernizing our infrastructure, creating meaningful jobs, and fueling inclusive economic growth. Every corner of Massachusetts—rural, urban, and everywhere in between—will feel the impact of this transformative plan. No one is left behind, and every dollar moves us toward a more equitable future.”
To view the full FY26-FY30 CIP, click the link here.
Notable investments in the FY26–FY30 CIP include:
FY26 – FY30 Housing Production and Preservation
$622 million to support the suite of HousingWorks programs that offer flexible tools to support affordable housing development, preservation, and rehabilitation
$334 million to support the Affordable Housing Trust Fund (AHTF) to accelerate development of affordable units for households whose incomes are not more than 110% AMI, with most projects supporting households at or below 60% AMI
$657 million to fund Public Housing investments that address critical repairs across the public housing portfolio through a combination of formula funding to local housing authorities (LHAs), targeted awards that address specific components, and ad hoc emergency repairs to mitigate health and safety issues $115 million to support the Public Housing Sustainability and Resiliency program, which funds projects that reduce greenhouse gas emissions produced by the public housing portfolio, increase the portfolio’s resilience to the effects of climate change, and improve the indoor air quality within the buildings
$15 million in Public Housing Accessibility to create or retrofit 12 public housing units into accessible units per year. Prioritizing accessible housing is extremely important since two-thirds of the portfolio houses lower-income older adults
$50 million for the Momentum Fund, a pioneering initiative designed to leverage state resources to support large scale, mixed-income multifamily development in a time where rising construction costs and high interest rates challenge the financial viability of these critical projects
$90 million to support several capital programs formerly supported by federal relief funds, including the Middle Income Housing Fund which supports the development of rental and for-sale housing through new construction, rehabilitation, and adaptive reuse, the CommonWealth Builder Fund that aims to address the racial homeownership gap in Massachusetts, and the ONE+ Mortgage and MassDREAMS programs geared towards improving home ownership opportunities throughout the Commonwealth
FY26- FY30 Advancing the Commonwealth’s Economic Development Agenda
$69 million for the new Massachusetts AI Hub to strengthen the state’s AI ecosystem
$57 million to support the Climatetech Program designed to promote job creation, economic development, and workforce development through deployment of climate technologies in the Massachusetts
$34 million for the Massachusetts TechHub Program to support the advancement of emerging technology sectors in regions across the Commonwealth
$33 million for the Business Builds Program to support businesses in making sustainable investments
$32 million for EOED’s Robotics grant program which is designed to increase access to robotics tools for communities across Massachusetts
$75 million for Workforce Skills Capital grants to expand career technical education programs, upgrade school and instructional lab spaces, and increase capacity in workforce training programs
$57 million for the Early Education and Out of School Time grants to improve child care facilities and add seats and classrooms
FY26-FY30 Investing in Sustainable Infrastructure, Protecting Land and Ensuring Clean Water
$672 million for the Clean Water Trust, via a combination of state funding and federal partnerships, to update and enhance water infrastructure
$182 million to the Department of Conservation and Recreation (DCR) to ensure parks, paths, and recreational locations are accessible to all residents
$225 million for land preservation, protection of nature and wildlife, and tree planting.
$158 million to replace, upgrade, and electrify Commonwealth vehicles.
$129.5 million in Municipal Vulnerability Preparedness (MVP) funding to help municipalities strengthen, restore, and protect local infrastructure
$120 million for inter-agency Resilient Mass actions to adapt to future climate conditions and reduce the risks associate with flooding, heat, and sea level rise
$113 million for decarbonization efforts at State Universities and Community Colleges
$62 million in grants to municipalities for inland dam and seawall projects to improve safety and prevent waterway or precipitation-based flooding
FY26–FY30 Improving Services and Efficiency
$711 million for IT initiatives that will improve healthcare systems, including $347 million for the Health Insurance Exchange (HIX) Integrated Eligibility System
$101 million to strengthen cybersecurity and IT infrastructure to help maintain a secure IT environment for daily operations across the Commonwealth
$82 million to continue supporting the Commonwealth’s Digital Roadmap initiative to scale and expand digital tools and services across agencies, with a focus on delivering accessible, user-friendly, and secure digital experiences for residents
$76 million to support Electronic Health Records (EHR) Modernization to consolidate EHRs for inpatient services delivered by the Department of Public Health and the Department of Mental Health
$30 million for IT investments in education, including $7 million to continue development of a new family portal and case management system for the state’s child care financial assistance programs
FY26–FY30 Protecting and Preserving Our Assets
$1 billion for Chapter 90 municipal capital grants, along with an additional $25 million for the Rural Roadway Funding program
$488 million for the Sagamore Bridge Replacement Project over five years
$466 million to support the modernization of the state’s courts
$497 million for the renovation of the Department of Public Health’s Lemuel Shattuck Hospital
$275 million for DCR facility improvements and equipment, including repairs and maintenance for rinks, pools, parks, campgrounds and boat ramps
$91 million for new Veterans Homes in Chelsea and Holyoke
$61 million in reliability and modernization-oriented spending for the state-owned rail system
$53 million for regional transit authority (RTA) and local transportation provider vehicle and facility investments
