Massachusetts Senate Passes Fiscal Year 2026 Budget

 Massachusetts Senate Passes Fiscal Year 2026 Budget

to Safeguard Financial Health and Protect the State’s Most Vulnerable

Senate upholds ongoing fiscal responsibility, protects core services, and reinforces

the state’s economic foundation in the face of federal uncertainty

 

(BOSTON—5/22/2025) The Massachusetts Senate today approved a $61.4 billion state budget for Fiscal Year 2026 (FY26). Over three full days of debate, the Chamber adopted 493 amendments, adding a total of $81.1 million in spending for statewide initiatives and local priorities for communities throughout the Commonwealth to the Senate Ways and Means Committee’s originally proposed budget.  

 

The final budget—which safeguards the state’s financial health, protects the state’s most vulnerable residents, and makes investments that reinforce the Commonwealth’s economic vitality in the face of mounting federal threats—was passed with bipartisan support by a vote of 38-2. It neither raises taxes nor spends dollars from the state’s stabilization fund—also known as the ‘Rainy Day Fund’—which currently stands at a historic $8.1 billion.

 

“This budget reflects the Senate’s commitment to a Commonwealth that carefully balances investing in our people with responsible money management so we can protect our residents, communities and economy for years to come,” said Senate President Karen E. Spilka (D-Ashland). “The Senate’s statewide approach to investment delivers resources to every part of the state and protects our most vulnerable residents, while our continued focus on education and mental health ensures that residents have they keys to unlock the doors of opportunity. I am profoundly grateful to each member for their contributions to this budget, to Chair Rodrigues and his staff for their tireless and inclusive work, as well as Vice Chair Comerford, Assistant Vice Chair Feeney, and each of the committee members for their commitment to shaping the state’s investments in our collective future.”

 

“The Fiscal Year 2026 $61.4 billion budget overwhelmingly passed by the Senate makes highly impactful and transformative investments in education, transportation, local aid, health and human services, housing, public safety, and other vital areas. This budget is centered on the principle of fiscal responsibility, never more important with the continuing economic uncertainty at the federal level,” said Senator Michael J. Rodrigues (D-Westport), Chair of the Senate Committee on Ways and Means. “The budget reflects the Senate’s deep and steadfast commitment towards achieving long-term sustainability while protecting core services for our most vulnerable populations. Thank you to all my Senate colleagues, especially members of the committee, whose thoughtful input, advocacy, and collaboration helped to develop and shape this comprehensive budget plan. Thank you to the committee staff, whose tireless work was largely responsible for producing this budget. Lastly, I would like to offer a heartfelt thank you to Senate President Spilka for placing her trust in me, and for her compassionate and resolute leadership as we work together to rebuild our economy and grow our state’s long-term economic health.”

 

“This budget is a testament to the Senate's collective values and our shared responsibility to invest in every community and every person in the Commonwealth—from the Connecticut River Valley to Cape Cod. By prioritizing education, transportation, health care, and support for municipalities, we are not only addressing immediate needs but also laying the foundation for a more equitable and resilient Commonwealth amid a time of great national turbulence and strife," said Senator Jo Comerford (D-Northampton), Vice Chair of the Senate Committee on Ways and Means. “Thank you to Senate President Karen Spilka and Ways and Means Chair Michael Rodrigues and their teams for leading this responsive, steadfast, and compassionate budget. Our work is far from over, but today, we move forward with the goal of ensuring that all Massachusetts residents have the opportunity to thrive.”

 

“The Fiscal Year 2026 Senate budget represents a common sense, pragmatic spending approach ahead of imminent economic headwinds and federal uncertainty," said Senator Paul R. Feeney (D-Foxborough), Assistant Vice Chair of the Senate Committee on Ways and Means. “It is a balanced, spend-within-our-means budget that uses the revenue we have available today, without increasing taxes, to invest in the most pressing needs of the Commonwealth. With smart investments in childcare, career and technical education, housing, education, economic development, public safety, and more, the Senate’s budget represents a values driven approach that lifts up the priorities of taxpayers across the Commonwealth, meets the needs of the most vulnerable, and maintains our state’s competitiveness.”

 

The Senate’s final budget increases spending by $3.7 billion over Fiscal Year 2025, with the majority of the increase attributed to MassHealth. Aligned with estimated tax revenue growth, the spending plan is based on a consensus tax revenue estimate of $41.214 billion for the coming fiscal year, a 2.25 per cent increase over the current fiscal year’s benchmark. Based on Fair Share surtax revenue estimates, the Senate’s budget proposal included $1.95 billion in education and transportation investments, an increase of $650 million over the last fiscal year.

 

Fair Share Investments

The Senate’s budget includes $1.95 billion in Fair Share surtax revenues, consistent with the consensus revenue agreement reached with the Administration and House of Representatives.

 

The Senate budget uses these revenues to support quality public education investments and the state’s transportation infrastructure, two cornerstones of the state’s economic foundation. Together with the Senate’s $1.28 billion Fair Share supplemental budget proposal passed earlier this month, total support this year for Fair Share supported statewide transportation and education projects amount to over $3 billion.

 

To brace for potential federal actions, the Senate’s FY26 budget deposits $165 million of surtax revenues into the Education and Transportation Reserve Fund, maintaining the Senate’s steadfast commitment to prioritizing fiscal responsibility in the face of rising uncertainty. By doing so, the budget sets aside a downpayment that will help maintain commitments to public education programming and transportation infrastructure in the event of economic disruption due to potential federal actions.

 

Notable Fair Share Education investments include:

 

• $325 million for the Commonwealth Cares for Children (C3) grant program, which is matched with $150 million in funds from the General Fund and the Early Education and Care Operational Grant Fund, for a total investment of$475 million.
• $265 million for Student Opportunity Act (SOA) expansion, as part of a $460 million increase from FY25 to support the fifth year of the implementation of the Student Opportunity Act and provide $150 in minimum per-pupil aid.
• $170 million for universal free school meals.
• $120 million for universal free community college, including non-credit tuition funding for those seeking to become emergency medical technicians and paramedics.
• $100 million to maintain financial aid programs for in-state students attending state universities through MASSGrant Plus, which is in addition to the$175.8 million for scholarships funded through general revenue.
• $98 million for childcare supports, coupled with a $192.8 million increase in the General Fund to maintain the current capacity and rates of the childcare financial assistance program.
• $50 million for school transportation reimbursement costs.
• $14 million for the State University Supporting Urgent Community College Equity through Student Services (SUCCESS) Program.
• $10 million for the Commonwealth Preschool Partnership Initiative (CPPI), matching $17.6 million in general revenue for a total of $27.6 million, to support a pathway to universal pre-kindergarten expansion, including in Gateway Cities and the Summer Step Up program.
• $20 million for early literacy initiatives and programs.
• $8 million for the Reimagining High School Initiative.
• $5 million for school-based mental health and wraparound services.

Notable Fair Share Transportation investments include:

 

• $350 million, in addition to $150 million from the General Fund, for a total of$500 million to support Massachusetts Bay Transportation Authority (MBTA) operations, including key initiatives like low-income fare relief, year-round ferry service and the MBTA Academy. Together with the Senate’s recently passed Fair Share supplemental budget, the Committee has proposed dedicating $820 million in operating resources to fully fund MBTA’s operations for FY26.
• $120 million to support Regional Transit Authorities (RTAs) across the state. Together with resources from the General Fund, the bill provides a record $214 million for RTAs.  The Fair Share portion of the funding includes:
• $66 million in direct operating support for RTAs.
• $40 million to support complete fare free fixed-route access across all RTAs.
• $10 million to incentivize connections between regional transit routes and local economic hubs.
• $4 million to support expanded mobility options for the elderly and people with disabilities.
• $78 million for debt service for expanded new bond capacity for the Commonwealth Transportation Fund (CTF) for essential transportation projects across the Commonwealth.
• By committing $600 million annually to the CTF, the Senate will unlock additional bond capacity for critical transportation projects over the next ten years.
• $52 million in operating support for the Massachusetts Department of Transportation (MassDOT).

Education

The Senate FY26 budget supports students of all ages by maintaining investments in public education at every level. The budget fully funds the fifth year of the Student Opportunity Act, provides a historic funding commitment to the Department of Early Education and Care (EEC), and stands with public and private institutions of higher education at a volatile time.

 

With a $1.71 billion total investment in early education and care, the Senate’s budget builds on last year’s passage of the EARLY ED Act, supporting the sector’s workforce, protecting programming, and maintaining access to affordable care for families facing economic pressures.

 

Notable education funding includes:

 

• $517.6 million for income-eligible childcare.
• $448.2 million for Department of Children & Families (DCF) and Department of Transitional Assistance (DTA) related childcare, providing critical services for families eligible for subsidized care.
• $475 million for the C3 operational grant program, supporting critical operational and workforce initiatives across the early education sector for the third year in a row.
• $98 million for childcare supports, coupled with a $192.8 million increase from the General Fund to maintain the current capacity and rates of the childcare financial assistance program.
• $44.9 million for EEC Quality Improvement Initiatives.
• $27.6 million for the Commonwealth Preschool Partnership Initiative to maintain access to universal pre-kindergarten and preschool opportunities in underserved areas.
• $20 million for Childcare Resource and Referral Centers to support parents, childcare providers, employers, and community groups in navigating the state’s early education and care landscape.
• $20 million for grants to Head Start programs to promote school readiness for young children in low-income households.
• $5 million for grants to early education and care providers for childhood mental health consultation services.
• $2.5 million to continue the successful public–private pilot program with employers to create new childcare seats.

The Senate budget’s public K-12 investments provide crucial support to school districts confronting increased costs and fiscal pressures while delivering high quality public education to Massachusetts’ students.

 

To support schools across the state, the Senate follows through on the commitment to fully fund and implement the Student Opportunity Act by Fiscal Year 2027 and invests$7.3 billion in Chapter 70 state aid to public schools, an increase of $460 million over FY25. Further, the budget increases minimum Chapter 70 aid to $150 per pupil, delivering an additional $39.6 million in resources to school districts across the state.

 

For the second year, the Senate’s budget dedicates $120 million to fully fund MassEducate, the Commonwealth’s universal free community college program that became law in last year’s budget. By again delivering free tuition and fees for residents, the FY26 proposal continues its support for this vital initiative that expands economic opportunity in a regionally equitable manner across the Commonwealth.

 

Other education investments include:

 

• $492 million for the Special Education (SPED) Circuit Breaker, in addition to the $190 million included in the Fair Share supplemental budget recently passed. Together with Fair Share supplemental funding, the Senate’s FY26 budget fulfills the promise of 75 per cent reimbursement for eligible tuition and transportation costs, recommending $682 million in total to reimburse school districts for the cost of educating students with disabilities.
• $183 million for charter school reimbursements.
• $275.8 million for scholarships to students, including $100 million in Fair Share resources to expand MASSGrant Plus financial aid support for students attending public institutions.
• $103.7 million to reimburse school districts for regional school transportation costs, including $53.7 million in General Fund resources.
• $30 million for higher education wraparound services, including $16 million in General Fund resources, to support services for students attending community colleges through MassEducate, and $14 million in Fair Share resources to support wraparound services for students attending state universities.
• $16 million for rural school aid support.
• $14.2 million for early college programs and $13.1 million for dual enrollment, along with $8 million for Reimagining High School to empower high school students to take college courses prior to graduation.
• $5 million to support continued implementation of the Massachusetts Inclusive Concurrent Higher Education law,  including $3 million for grants offered through the Massachusetts Inclusive Concurrent Enrollment initiative to help high school students with intellectual disabilities aged 18–22 access higher education opportunities; and $2 million for the Massachusetts Inclusive Concurrent Enrollment Trust Fund.
• $3 million for the Genocide Education Trust Fund to continue the state’s commitment to educate middle and high school students on the history of genocide.
• $3 million for the Civics Education Trust Fund to maintain and support a statewide civic infrastructure, provide professional development to teachers, and ensure that every student can access high quality civics education.
• $1 million for Hate Crimes Prevention Grants to support education and prevention of hate crimes and incidences of bias in public schools. 

Community Support

Highlighting the Senate’s longstanding commitment to a sustainable state–local partnership, this budget provides significant resources to support all Massachusetts cities and towns, ensuring that the state can meet the needs of every region, city, and town—and leave no corner of the Commonwealth behind.

 

The proposal includes $1.337 billion in funding for Unrestricted General Government Aid (UGGA), the primary source of direct state aid to Massachusetts towns and cities, an increase of $38.7 million over FY25. UGGA funding supports resources for municipalities as they collectively confront increased fiscal constraints at the local level.

 

The budget establishes a special commission to study how local aid is distributed, evaluate its effectiveness and equity, and make recommendations to maximize the equity of the distribution. In addition to traditional sources of local aid, this budget also increases payments in lieu of taxes (PILOT) for state-owned land to $54.5 million. PILOT funding is a source of supplemental local aid for cities and towns working to protect and improve access to essential services and programs.

 

To further help communities thrive, the Senate Budget proposal gives communities, not the Legislature, the final say when issuing liquor licenses for restaurants and bars.

 

Other local investments include:

 

• $214 million for Regional Transit Authorities (RTAs) to support regional public transportation systems, including $120 million from Fair Share funds to maintain and continue expansions to regional bus service, sustain systemwide fare free transit service, and support RTA commuter operations.
• $116 million for local housing authorities.
• $54.5 million for payments in lieu of taxes (PILOT) to cities and towns for state-owned land.
• $52.9 million for libraries, including $19.5 million for regional library local aid,$20 million for municipal libraries and $6.2 million for technology and automated resource networks.
• $29.9 million in grants to Councils on Aging, increasing assistance per elder to$16 from $15 in FY25.
• $26.2 million for the Massachusetts Cultural Council to support local arts, culture, and creative economic initiatives.

 

The FY26 budget codifies fare-free RTA service, which will require all RTAs to eliminate passenger fares for fixed routes and ADA-required paratransit service. With this measure, the Senate continues to prioritize regional equity, support RTAs as an essential public service that connects communities, and provide a crucial connection for commuters, students, seniors, and people with disabilities.

 

Health, Mental Health, and Family Care

The Senate’s FY26 budget funds MassHealth at $22.41 billion, an increase of $2.34 billion over the last fiscal year. As the largest cost driver in the state’s budget, MassHealth alone accounts for 65 per cent of the total spending increase over the FY25 budget.

 

Amid uncertainty in Washington, this budget maintains access to comprehensive health care coverage for over 2 million Massachusetts residents. MassHealth covers affordable, accessible, and comprehensive health care services for more than 1 in 4 residents, nearly half of all children, and 7 out of every 10 nursing facility residents.

 

To help keep healthcare costs down, the Senate Budget proposal includes a provision which will target high cost prescription drugs and ensure that the price for the drugs do not far exceed the value.

 

Other health investments include:

 

• $3.2 billion for a range of services and focused support for people with intellectual and developmental disabilities, including $2 billion for community residential services and $288 million for the Department of Developmental Services (DDS) Community Day and Work program.
• $1.73 billion to support the Personal Care Attendant program and its historic collective bargaining agreement which raised the wage scale to $25 per hour.
• $694 million for adult support services, including $19 million to support jail diversion initiatives to better serve individuals with mental illness and substance use disorders and connect them with appropriate treatment.
• $582.1 million for nursing facility Medicaid rates, including $112 million in additional base rate payments to maintain competitive wages in the Commonwealth’s nursing facility workforce.
• $386.4 million for Department of Mental Health (DMH) hospital and community-based services, including $4.8 million to fully fund the operation of the Pocasset Mental Health Center.
• $237.7 million for Department of Public Health (DPH) hospital operations, including $31 million to fully fund and maintain operations of the Pappas Rehabilitation Hospital for Children through the duration of FY26.
• $179.9 million for the Bureau of Substance Abuse Services (BSAS), including$1.5 million in new funding to develop the state’s recovery coach workforce, which will support key initiatives from last session’s Substance Use Disorder and Recovery Coach Licensure Act.
• $132 million for children’s mental health services.
• $102 million for nursing facility enhanced Medicaid rates to begin implementation of the 2024 Long-Term Care Act.
• $79.9 million for domestic violence prevention services.
• $39.3 million for Early Intervention (EI) services, maintaining necessary support and services for infants and young toddlers with developmental delays and disabilities.
• $35 million for Family Resource Centers(FRCs) to maintain mental health resources available to families.
• $26.5 million for family and adolescent health, including $11.2 million for comprehensive family planning services and $6.7 million to enhance federal Title X family planning funding.
• $22.6 million for school-based health programming and services.

$20 million to recapitalize the Behavioral Health, Access, Outreach and Support Trust Fund to support targeted behavioral health initiatives.

• $14.3 million for suicide prevention and intervention, with an additional $1.8 million for Samaritans Inc. and $1.1 million for the Call2Talk suicide prevention hotline. This investment protects and fully funds 9-8-8, the 24/7 suicide and crisis lifeline.
• $14.7 million for maternal and child health, including $10.8 million for pediatric palliative care services for terminally ill children and a policy adjustment to ensure that children up to age 22 can continue to be served through the program.
• $12.7 million for Meals on Wheels and other nutrition programs for seniors.
• $6 million for Social Emotional Learning (SEL) grants to bolster social emotional learning support for K-12 students.
• $5.5 million for children advocacy centers to maintain critical support available to children that have been neglected or sexually abused.
• $5 million for workforce support for community health centers, including loan forgiveness.
• $5.2 million for the Office of the Child Advocate.
• $3.8 million for the Massachusetts Center on Child Wellbeing and Trauma.
• $2.5 million for veterans’ mental and behavioral health services through the Home Base program.
• $2 million for grants for improvements in reproductive health access, infrastructure, and safety.

Expanding and Protecting Opportunities

The Senate is committed to expanding opportunity and supporting the state’s most vulnerable residents. This budget therefore maintains the annual child’s clothing allowance, providing $500 per child for eligible families to buy clothes for the upcoming school year. The budget also fully annualizes the FY25 10 per cent increase to Transitional Aid to Families with Dependent Children (TAFDC) and Emergency Aid to the Elderly, Disabled and Children (EAEDC) benefit levels to help families move out of deep poverty. Additionally, an amendment adopted during debate ensures that pregnant women can access TAFDC, regardless of where they are in their pregnancy.

 

In addition, the Senate’s budget dedicates $82 million to support food security and child nutrition initiatives, including $42 million for Emergency Food Assistance to assist residents in navigating the historical levels of food insecurity, and $25.4 million for theHealthy Incentives Program (HIP) to ensure access to healthy food options.

 

Economic opportunity investments include:

 

• $467 million for Transitional Assistance to Families with Dependent Children (TAFDC) and $209 million for Emergency Aid to Elderly, Disabled and Children (EAEDC) to provide the necessary support as caseloads increase, which annualizes the deep poverty increases implemented in the FY25 budget.
• $142.9 million for DTA caseworkers to protect access to crucial financial assistance, food support, and employment and training programs for some of the state’s most vulnerable residents.
• $59.4 million for adult basic education services to improve access to skills necessary to join the workforce.
• $42 million for the Massachusetts Emergency Food Assistance Program.
• $25.4 million for the Healthy Incentives Program to support healthy food access for households in need.
• $20.6 million for employment services programs to help people with lower incomes move toward economic independence through pathways of self-sufficiency.
• $15.5 million for the Women, Infants, and Children (WIC) Nutrition Program.
• $9.2 million for career technical institutes to increase the state’s skilled worker population and provide residents with access to career technical training opportunities, which will combine with $12.3 million in remaining American Rescue Plan funding for the program.
• $5 million for the Secure Jobs Connect Program, providing job placement resources and assistance for homeless individuals.
• $4.8 million for the Innovation Pathways program to continue to connect students to training and post-secondary opportunities with a focus on STEM fields.
• $1 million for employment programs for young adults with disabilities.

Housing

As the state envisions a more fiscally sustainable path for its future, increasing affordable housing opportunities and addressing housing challenges remain at the forefront of the Senate’s agenda. This budget therefore invests more than $1.16 billion in housing initiatives, dedicating resources for housing stability, residential assistance, emergency shelter services, and homelessness assistance programs.  The Senate’s FY26 budget deploys a humane, responsible, and sustainable approach to support families and individuals in need with affordable, safe, and secure housing options.

 

Housing investments include:

 

• $253 million for the Massachusetts Rental Voucher Program (MRVP).
• $116 million for local housing authorities.
• $110.7 million for assistance for homeless individual shelters.
• $57.3 million for the HomeBASE program to support sustainable exits from shelter.
• $27.7 million for homeless program administration to move people from the Emergency Assistance shelter system.
• $19.5 million for the Alternative Housing Voucher Program (AHVP), providing rental assistance to people with disabilities.
• $15.8 million for the Executive Office of Housing and Livable Communities.
• $10.5 million for assistance for unaccompanied homeless youth.
• $10 million for sponsor-based supportive permanent housing to support 16 new housing units and case management services for vulnerable individuals.
• $8.9 million for the Home and Healthy for Good re-housing and supportive services program, including funding to support homeless LGBTQ youth.
• $6.5 million in continued support for resident service coordinators to help residents maintain stable tenancies at local housing authorities, which are required to provide households with the services they need.

In addition to these investments in housing, the Committee’s budget includes a provision—on which the Senate has consistently led—requiring that residential rental broker’s fees must be paid by the contracting agent, often the landlord of an apartment, ensuring that renters are not burdened with unexpected and extraordinary costs. The Senate first passed this proposal last session.

 

During debate, the Senate approved an amendment exploring opportunities to remove the sales tax for multifamily housing construction projects.

 

With both chambers of the Legislature having approved different versions of the Fiscal Year 2026 budget, they will now reconcile their versions before sending a final FY26 budget to the Governor for her signature.