At MMA, Governor Healey Announces Major Infusion of Support for Municipal Transportation Projects, Local Aid
Governor files four-year $1.2 billion Chapter 90 bill that preserves 50 percent increase, will propose 4.4% increase to local aid
Thanks to Governor Healey’s $8 billion transportation plan, MassDOT launches first-of-its-kind program for municipal bridge repair
BOSTON – At the Massachusetts Municipal Association Connect 351 Annual Conference, Governor Maura Healey announced a major infusion of state support for municipal transportation projects and local aid.
Today, Governor Healey filed her Chapter 90 bill that proposes a four-year, $1.2 billion Chapter 90 authorization that would provide elevated funding of $300 million per year for critical transportation and infrastructure projects in every city and town. This proposal preserves the 50 percent increase in Chapter 90 funding that the Governor established last year.
Governor Healey also announced that she is launching a new program to fund local, municipal transportation projects across the state. Supported by leveraging Fair Share revenue to expand borrowing capacity, the Funding for Accelerated Infrastructure Repair (FAIR) program will help municipalities work through their backlog of municipal bridges in need of repair. This investment is made possible by the expansion of the Commonwealth Transportation Fund through Governor’s Healey’s $8 billion transportation plan.
Additionally, Governor Healey announced that her FY27 budget will propose a 4.4 percent increase in local aid, totaling more than $10.3 billion, including increases in Chapter 70 payments, veterans’ benefits, and unrestricted aid.
“We know that cities and towns are struggling with their budgets due to high costs and disruption from the Trump Administration,” said Governor Healey. “That’s why we’re continuing to deliver record levels of local aid, so that our municipal leaders can upgrade their roads and bridges, make sure every child is getting a high-quality education, support our veterans and deliver other critical services that people rely on. We have launched a new program to speed up repairs on municipal bridges so that construction gets done faster and cheaper, and traffic can get moving again.”
“As a former Mayor, I know how much our communities rely on state funding. That’s why we have prioritized delivering significant investments to municipalities for schools, roads and bridges, infrastructure projects and economic development,” said Lieutenant Governor Kim Driscoll. “Governor Healey and I believe deeply that a strong local-state partnership is key to a strong Massachusetts. We will continue to work closely with our local leaders to help them deliver for their communities.”
FAIR
The FAIR investment will be used to reopen closed bridges, remove postings on restricted bridges, and preserve additional bridges from falling into either category. MassDOT is currently advancing and evaluating projects in Frankin, Hampden, Berkshire and Hampshire counties in Western Massachusetts, with additional locations across the state to follow. For example, in Hawley, MassDOT is working to make essential steel and concrete repairs to the bridge that crosses over the Chickley River to strengthen it and ensure that it remains safe and reliable for travelers.
While federal law requires MassDOT to inspect all bridges statewide, maintenance and replacement costs of municipal-owned bridges falls to cities and towns, which face escalating costs and limited revenue. This program addresses these constraints by reducing administrative burdens and providing a dedicated source of funding for these projects.
“The Healey-Driscoll Administration has continued to identify ways to respond to and assess the needs of our cities and towns as we work to repair bridges and key infrastructure projects especially in western Massachusetts. This program fills that critical gap. It allows us to move quickly, reopen closed structures, and prevent further deterioration before it becomes more costly to repair and disruptive to the community,” said the Interim MassDOT Secretary and MBTA General Manager Phil Eng. “As we begin these construction activities, we look forward to working with our municipal partners and stakeholders to provide much-needed support.”
“The Commonwealth’s transportation network is the fundamental link connecting us to work, school, family, and friends, and thanks to the leadership of the Healey-Driscoll Administration, this infusion of funding will target infrastructure with the greatest need,” said Undersecretary and State Highway Administrator Jonathan Gulliver. “Closed or restricted bridges impact public safety as much as mobility, and through the FAIR Program’s equitable approach, we’re focusing on bridges in municipalities that otherwise might face immense challenges to getting these bridges back open and safe for use.”
Chapter 90
This year, the administration is proposing a four-year, $1.2 billion Chapter 90 authorization that would provide elevated funding of $300 million per year. The four-year authorization will provide certainty to cities and towns, reduce delays related to funding, and support long-term capital planning and strategic investment in municipal transportation infrastructure over a four-year period.
With the Legislature’s support, the Healey-Driscoll Administration in FY26 added $100 million of annual funding for Chapter 90 to the traditional $200 million program. The new money was allocated on the basis of lane miles, with increased resources available to every city and town in the state, especially rural and small communities. This new bill mirrors that approach over the next four years.
The bill also authorizes:
· $200 million for transportation improvements that directly support new housing development.
· $200 million for a new Parkway Resilience Improvement and Safety Modernization (PRISM) investment program to repair, improve safety, and enhance resilience of transportation infrastructure under the care and control of the Department of Conservation and Recreation, including but not limited to roads, parkways, bridges, culverts, and multi-use paths.
· $500 million to supplement capital funding for MassDOT’s Bridge and Pavement Lifecycle Asset Management Programs (LAMP) to improve bridges and pavement statewide on an accelerated schedule, including programs that assist rural communities with deferred maintenance.
· $200 million for the MBTA’s Rail Reliability Program or vehicle renewal, including new cleaner, quieter locomotives for commuter rail.
Additionally, the bill proposes $3.2 billion for popular and well-used authorizations that were originally included in the 2022 transportation bond bill to advance projects on federally-aided and non-federal aid eligible highways and to support the Municipal Pavement program and Shared Streets and Spaces municipal grants.
Local Aid
Governor Healey’s FY27 budget proposal will provide for a 2.5 percent increase in Unrestricted General Government Aid, in line with projected non-surtax revenue growth. The budget also fully funds the sixth and final year of the Student Opportunity Act with $7.6 billion in Chapter 70 aid, a $242 million increase over FY26 that guarantees a minimum per-pupil aid of $75 for all districts.
Since taking office, Gov. Healey has increased UGGA by 10 percent, or $125 million, and Chapter 70 aid has grown by 27 percent, or $1.6 billion.
In total, Governor Healey will propose to dedicate $10.4 billion in local aid for cities and towns in FY27, representing a $438.5 million (4.4 percent) increase over the FY26 GAA.
Furthermore, the Governor’s FY27 budget proposal will expand the state's commitment to school transportation by investing an additional $154.3 million to reimburse school districts for a significant share of transportation costs across key programs, including regional school transportation and transportation for homeless and out-of-district students.
Recognizing the pressures being experienced by our rural communities, Governor Healey will recommend $20 million for Rural School Aid, an $8 million increase (67 percent) over the FY26 GAA. This program provides rural districts with targeted support to address the fixed costs of operating a school district and to advance strategies that improve long-term operational efficiency.
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