Governor Healey and Lieutenant Governor Driscoll Sign
$57.78 Billion Fiscal Year 2025 Budget
Sustainable, Balanced Spending Plan Delivers
Transformative Education, Infrastructure, Transportation Initiatives
BOSTON – Today, Governor Maura Healey signed the
Fiscal Year 2025 (FY25) state budget, a $57.78 billion plan that builds on the
many strengths of the Massachusetts economy and addresses some of the state’s
biggest challenges. The budget is balanced, responsibly controls spending
growth and protects taxpayer dollars.
The budget includes transformative investments to strengthen
Massachusetts’ national leadership in education. It includes funding for
Governor Healey’s Literacy Launch Initiative, a nation-leading strategy to
expand access to evidence-based reading instruction for Massachusetts students.
It continues to support $475 million in Commonwealth Cares for Children (C3)
grants for early education and care providers and makes this program permanent.
Massachusetts is the only state in the nation to continue funding this vital
program at the same level that the federal government did. The budget also
makes community college free for all students through the MassEducate program.
This builds on the success of MassReconnect, Governor Healey’s initiative to
make community college free for students aged 25 and older, which drove a 45 percent increase in enrollment for this age group last
year. The budget also fully funds the Student Opportunity Act.
Additionally, for the second year in a row, the
Healey-Driscoll Administration is dedicating 1 percent of the overall budget to
energy and the environment. This investment further positions Massachusetts to
be a global leader in the burgeoning clean energy economy and strengthens the
state’s climate resilience, mitigation and adaptation efforts, including
boosted funding for dams, culverts, and small bridges. The budget also creates
a new Disaster Relief and Resilience Fund to improve the state’s ability to
respond to natural disasters, such as the catastrophic flooding that impacted
municipalities, farms and businesses last year.
The FY25 budget also seeks to address some of the greatest
challenges holding Massachusetts residents back, particularly through
improvements to transportation and infrastructure. It directs the highest
levels of funding in 20 years to the MBTA, including doubling operational
support, creating a first-of-its-kind Low-Income Fares Program, and authorizing
$250 million for the Commonwealth Transportation Fund (CTF) to unlock an
estimated $1.1 billion for transportation capital projects, including for the MBTA’s
Track Improvement Program. It also supports year-round, fare free service at
the state’s Regional Transit Authorities.
“Massachusetts is the leader in innovation and education,
the best place to raise your family or grow a business. But we also face
challenges, so we aren’t resting – we’re going on offense,” said Governor
Healey. “This budget delivers on our shared priorities and drives our state
forward with urgency and purpose. It invests in areas that we are already
leading on and makes them better – including our #1 ranked schools and our
nation-leading child care strategy. We’re also tackling our biggest challenges
by lowering household costs and improving transportation. We’re doing all of
this responsibly, staying within our means and in line with the rate of
inflation. I’m grateful to Senate President Spilka, Speaker Mariano, Chairs
Michlewitz and Rodrigues, and all of our partners in the Legislature for their
hard work on this transformative budget.”
“The investments in this budget will make it easier for
people to afford to live and work here in Massachusetts, while also making us
more a competitive place for employers to stay and grow here,” said Lieutenant
Governor Kim Driscoll. “I’m also proud that this budget continues our
strong support for municipalities, from local aid to fully funding the Student
Opportunity Act.”
By fully accounting for another year of the historic tax
cuts enacted by the Governor and Legislature last year, the FY25 budget extends
Massachusetts’s competitive advantage and supports seniors, families, renters,
and others across the state struggling with high costs.
The FY25 budget outlines $1.3 billion in strategic
investments to improve transportation and education using the voter-approved
Fair Share surtax. These include MassEducate, Literacy Launch, and funding for
the MBTA and Regional Transit Authorities.
The FY25 budget supports the cities and towns that make
Massachusetts a great place to live, raise a family, and run a business by
growing unrestricted general government aid by 3 percent for the second year in
a row.
“We are proud to have worked with Chairs Michlewitz and
Rodrigues to deliver a balanced FY25 budget that controls spending and delivers
crucial services,” said Secretary of Administration and Finance Matthew J.
Gorzkowicz. “Collectively with our legislative partners, we understand the
financial headwinds we are facing, and we are laying the building blocks now to
ultimately make sure we can effectively manage spending and deliver the
programs and services our residents expect within available
resources.”
“With historic investments in free community college, early
education and care, and regional equity, Massachusetts has the tools it needs
to provide hope and opportunity to each of our residents,” said Senate
President Karen E. Spilka (D-Ashland). “This budget is a vote of confidence
in every Massachusetts resident going to school, raising a family, and working
to make ends meet—as well as a blueprint for bringing equity and opportunity to
every region and resident of our state. I’m grateful to Governor Healey for her
signature, Chair Rodrigues, my Senate colleagues, Speaker Mariano, and our
partners in the House.”
“This budget takes a fiscally responsible approach to making
meaningful investments in areas of significant need. I’m proud of the fact that
the FY25 budget allocates key funding to better support Massachusetts students
and families, to increase access to affordable health care, and to provide for
a safer and more reliable public transportation system,” said House Speaker
Ronald J. Mariano (D-Quincy). “I want to thank Governor Healey, Chairman
Aaron Michlewitz and my colleagues in the House, along with our partners in the
Senate, for their hard work and critical input throughout this process, a
collective effort that has helped to produce a strong and responsible FY25
budget.”
“The Fiscal Year 2025 budget the Governor signed today makes
transformative investments in education, regional equity, and builds upon the
Commonwealth’s workforce economy. These historic measures enable residents to
remain in the state, solidifying our economic future for generations to come,”
said Senator Michael J. Rodrigues (D-Westport), Chair of the Senate
Committee on Ways and Means. “The FY 25 budget is also a balanced and
responsible plan, centered on sustainability and regional equity by maximizing
revenues and building upon the progress we’ve already made in key sectors of
the state economy. With a transparent and inclusive amendment process, we were
able to improve our original budget and make even further strides in our
education, economic development, environmental, and health & human services
priorities. I would like to thank House Ways and Means Chair Aaron Michlewitz and
Secretary of Administration and Finance Matthew Gorzkowicz for their
collaborative efforts in helping to develop and shape this comprehensive budget
plan.”
“The Fiscal Year 2025 that is signed today is truly a
reflection of the best and most critical initiatives that were contained in the
various budget proposals that have been presented this year. Whether it is
greater investments into programs like housing stability, food security, or
early education the initiatives contained in this budget are a reflection of
our shared values,” said Representative Aaron Michlewitz, Chair of the House
Committee on Ways and Means (D-Boston). “By reinvesting in the people of
the Commonwealth we will continue to assist those in need while making our
economy more competitive and equitable for years to come.”
Governor Healey is also proud to sign 258 of the 261 FY25
budget outside sections. Included in those sections is the Disaster Relief and
Resiliency Fund and a provision to allow individuals to amend their marriage
licenses and birth certificates to accurately reflect their gender
identity.
The administration also authorized the closure and
redevelopment of the MCI-Concord prison, saving the state $16 million and
unlocking the property for housing and other new uses that will benefit Concord
and the nearby region. Additional outside sections require insurance carriers
to cover fertility preservation services for individuals with conditions that
impair fertility; modernize the examination process for uniformed members of
the State Police; and legalize online Lottery games.
While the Massachusetts economy remains strong, the
administration recognizes the ongoing need for fiscal responsibility and active
risk management in FY25. The administration is therefore vetoing approximately
$317 million in gross spending to help ensure that FY25 ends with a balanced
budget.
The Governor’s signing letter, veto message and returns will
be available here soon.
FY25 Budget Highlights
Fair Share
- $761.5
million for education
- $239
million total for higher education, including $93.5 million for Mass
Educate to build upon the success of Mass Reconnect and make community
free for all, and $80 million for MassGrant Plus
scholarships
- $244
million for K-12 education, including $170 million to guarantee access to
free school meals for students across the Commonwealth and $20 million
for Literacy Launch
- $278
million for early education and care, including $65 million for provider
rates and $175 million to help support C3 grants
- $538.5
million for transportation
- $250
million transfer to Commonwealth Transportation Fund to leverage over $1
billion in borrowing for transformative infrastructure
investment
- $20
million for Fare Equity at the MBTA
- $110
million for regional transit grants and free fares
- $45
million in supplemental Chapter 90 funding for municipal roads and
bridges
- $10
million for MBTA Hiring Academy and recruitment initiatives
Education and Local Aid
- Fully
funds the Student Opportunity Act with $6.86 billion for Chapter 70
funding, a 4 percent increase over FY24
- A $104
increase in per pupil minimum aid
- Provides
$475 million in C3 grants to early education and care providers
- $15
million for early educator scholarships and loan forgiveness
- $85
million for child care provider rates, $20 million over FY24 for new rate
increases to continue better covering the true cost of care
- A 3
percent increase to Unrestricted General Government Aid (UGGA)
- $39
million for local and regional library aid
Housing and Homelessness
- $326
million in Emergency Assistance to contribute to the state’s ongoing
shelter response
- $219.2
million for the Massachusetts Rental Voucher program for low-income
tenants
- $57.3
million for HomeBASE to connect EA-eligible families with more permanent
housing opportunities
Economic Development
- $7.5
million for the Community Empowerment and Reinvestment Grant
Program
- $7.6
million for the Small Business Technical Assistance
program
- $3.7
million for the Massachusetts Office of Travel and
Tourism
- $600,000
for the Massachusetts Downtown Initiative for municipalities looking to
revitalize their downtowns
Health and Human Services
- Fully
funds the Chapter 257 rate reserve for human service providers at $390
million
- Expands
Transitional Aid to Families with Dependent Children and Emergency Aid to
the Elderly Disabled and Children through a 10 percent benefit increase to
$496 million and $183 million, respectively
- $124.1
million for the Department of Developmental Services Turning 22
Program
- $40.0
million to increase base rates for nursing facility providers
- $14.7
million for maternal health services, including a new $1.0 million
investment for a doula certification program at the Department of Public
Health
- $5.5
million for Children’s Advocacy Centers, a $550 thousand increase over
FY24
- $2.0
million to fully support the Massachusetts Youth Diversion Program at the
Department of Youth Services
Energy and the Environment
- Funds
the Executive Office of Energy and Environmental Affairs at $555 million,
which hits the administration’s target of 1 percent of total budget and
includes:
- $10
million for Food Security Infrastructure Grants
- $20
million for the Massachusetts Clean Energy Center to support wind
technology, decarbonized homes, and workforce training programs in the
clean energy industry
- $8.7
million for environmental justice
- $42.3
million for emergency food assistance
- $14
million in consolidate net surplus to support new Disaster Relief and
Resiliency Fund
- $1
million total for Dam Safety Technical Assistance to assist communities
in addressing vulnerable dams
- $2.8
million to fund critical work on small bridges and culverts
Workforce Development
- Provides
$15.9 million for Summer Jobs Program for At-Risk Youth (Youthworks) to
subsidize wages and facilitate career development for at-risk
youth
- Provides
$9.6 million for Career Technical Institutes
- Includes
$3.3 million for the Registered Apprenticeship Program
- $8.9
million for MassHire Career Centers to provide regional workforce training
and employee placement services across 29 locations
Serving Our Veterans
- Funds
the Veterans’ Services at $193.5 million, an 11 percent increase from FY24
GAA
- Provides
historic levels of support for the Chelsea and Holyoke Soldiers’ Homes
with a combined $87.4 million
Criminal Justice and Public Safety
- Savings
of $16 million through the closure of MCI Concord
- $5.3
million for Non-profit Security Grants
- $13.3
million for gang prevention grants
Technology and Cybersecurity
- Codifies
the Digital Accessibility and Equity Governance Board, and the position of
Chief IT Accessibility Officer (CIAO)
- $4.2
million for technology modernization and hardware maintenance
contracts
- $700,000
for advanced threat protection software and other upgrades