Senate Approves $532 Million Budget to Bolster Fiscally Strained Hospitals and Health Centers
Millions in veterans’ benefits and housing assistance also included
(BOSTON—6/18/2025) Today, the Massachusetts Senate passed a supplemental budget that directs funding to hospitals and community health centers throughout the state confronting rising costs while working to serve vulnerable populations.
The $532 million bill, S.2529, includes $174 million for fiscally strained acute care hospitals and $35 million for community health centers facing financial challenges. Community health centers—many serving residents who live in low-income areas and are uninsured or underinsured—were on the front lines of the COVID-19 pandemic and continue to deliver essential care that is increasingly under threat from federal policies.
Language in the Senate legislation ensures that state funding will go to the hospitals and care centers specifically providing a high percentage of services to vulnerable populations.
“Massachusetts has a healthcare ecosystem that is the envy of other states, and that doesn’t happen by accident. Supporting every resident is part of what it means to be a leader in healthcare access,” said Senate President Karen E. Spilka (D-Ashland). “This funding will help our hospitals and community health centers provide high-quality care in every region, no matter a patient’s insurance status, as well as provide critical services to our veterans, seniors and municipalities. I’m grateful to Chair Rodrigues for his leadership, Senator Friedman for her unrivalled expertise, and my colleagues for their support on this important legislation.”
“The Senate took action today on reconciling deficiencies of $532 million in the Fiscal Year 2025 budget, most notably providing $209 million in critical assistance to fiscally strained acute care hospitals and community health centers,” said Senator Michael J. Rodrigues (D-Westport), Chair of the Senate Committee on Ways and Means. “The bill also allocates $134 million to the Medical Assistance Trust Fund, with the remaining $189 million to responsible bill-paying obligations across a broad range of state agencies and programs. We’re fortunate that the Commonwealth is in strong financial condition to meet these responsibilities, never more important than now in these continuing uncertain times.”
“As we contemplate the uncertainties around federal funding, it is essential that we provide financial support for our municipalities, veterans, home care services, and health safety net providers,” said Senator Cindy F. Friedman (D-Arlington), Senate Chair of the Joint Committee on Health Care Financing. “In particular, it is incredibly important that this supplemental budget is delivering targeted relief to our acute care hospitals and community health centers that provide services to our most vulnerable community members—those that are uninsured or underinsured. I thank Senate President Spilka and Chair Rodrigues for their work and attention to this critical matter.”
In addition to general hospital and community health support, the bill specifically allocates $1.2 million to Western Massachusetts hospitals, directs $5.8 million to benefits for Massachusetts veterans, provides $60 million for home care services, and funds grants to cities and towns for extraordinary medical costs.
The legislation was reported out of the Committee on Ways and Means on June 12, 2025, with 15 members voting to advance the bill and no votes in opposition. The committee vote is available on the Legislature’s website, along with a full summary of the bill as drafted by the committee and a recording of the Senate’s livestreamed debate on 66 amendments.
The bill is a partial report on a measure that passed the House in late May. A version having passed both chambers of the Legislature, the Senate and House will now work to reconcile differences before sending a final version to the Governor’s desk for her signature.
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