Governor Healey Signs Budget That Lowers Costs with No New Taxes or Fees

Governor Healey Signs Budget That Lowers Costs with No New Taxes or Fees 

Budget enhances public safety by protecting survivors of sexual assault and strengthening tools to hold perpetrators accountable  

Boston — Governor Maura Healey today signed the Fiscal Year 2027 (FY27) state budget, delivering a balanced spending plan that lowers costs for families, strengthens schools and transportation, supports cities and towns, invests in housing and health care, and enhances public safety, all without raising new taxes or fees. The budget also includes key provisions proposed by Governor Healey to strengthen protections for survivors of sexual assault and hold perpetrators who commit those crimes accountable. 

“This budget is about lowering people’s costs, driving economic growth and supporting our kids, all without raising any taxes or fees,” said Governor Healey. “We’re helping families afford child care, health care and higher education, increasing support for our cities, towns and schools that we know are facing financial challenges, speeding up housing production to lower costs, and making health insurance more affordable. We’re also taking important steps to protect survivors of sexual assault and make sure anyone who commits these heinous crimes is held accountable. I’m grateful for the partnership of the Legislature, and we’ll continue working together to deliver results for the people of Massachusetts through a balanced, fiscally responsible budget with no new taxes or fees.” 

“Our FY27 budget tackles some of the biggest challenges facing Massachusetts families by making smart investments that lower costs and strengthen our communities,” said Lieutenant Governor Kim Driscoll. “From lowering the cost of child care and free school meals to public transportation, housing and mental health services, this budget delivers meaningful support for residents while remaining fiscally responsible and protecting taxpayer dollars.”  

 “This budget reflects the Senate's steadfast commitment to fiscal responsibility while investing in what matters most to Massachusetts families,” said Senate President Karen E. Spilka (D-Ashland). “We completed our promise to fully fund the Student Opportunity Act, delivered record local aid to every city and town across the Commonwealth, and made a historic investment in the MBTA and our regional transit systems. No matter where in our Commonwealth you call home, this budget works to lower your costs, expand your opportunities, and safeguard the services you rely on. I am deeply grateful to Governor Healey for her signing this budget into law, Chair Rodrigues and the entire Ways and Means Committee for their hard work on this bill, my Senate colleagues and staff for their thoughtful contributions, and our partners in the House for getting this done for Massachusetts.” 

 “As a result of the Trump Administration’s sweeping federal funding cuts, reckless trade policies, and war with Iran, this budget has come during a period of significant economic uncertainty. That’s why I’m incredibly proud of the investments that this budget makes despite those challenges, from funding for free school meals and for the final year of the Student Opportunity Act, to robust support for the MBTA, to nearly $10 billion for cities and towns across the Commonwealth – all without raising taxes,” said House Speaker Ronald J. Mariano (D-Quincy). “I want to thank Governor Healey for working diligently with the Legislature throughout the budget process, as well as Chairman Michlewitz and my colleagues in the House, along with our partners in the Senate, for working to ensure that this budget delivers for every community across Massachusetts.” 

“Our FY27 budget protects the long-term stability of Massachusetts' finances while making targeted investments in the sectors that drive our economy and make our state the best place in the country to live," said Administration and Finance Secretary Matthew J. Gorzkowicz. "By keeping spending growth sustainable and strategically utilizing available resources including Fair Share surtax revenues, this budget ensures that Massachusetts will continue to thrive in FY27 despite ongoing national economic uncertainty. We are grateful to the Legislature for their partnership in putting Massachusetts on strong footing for the year ahead." 

Making Massachusetts more affordable 

The FY27 budget makes meaningful investments to lower costs for Massachusetts families in many ways, including: 

• Investing in housing to help build more homes and lower costs   
• Expanding access to affordable health insurance through ConnectorCare   
• Supporting public retirees by raising the earnings cap for part-time post-retirement work and providing a pathway to enhanced cost of living adjustments 
• Providing child care financial assistance for approximately 72,000 children    
• Continuing free school meals for all children  

 

Building on Massachusetts’ leadership in education and supporting students 

The budget also makes significant investments in Massachusetts students by fully funding the final year of the Student Opportunity Act with a $300 million increase in Chapter 70 school aid, totaling $7.66 billion, investing more than $11 million in student behavioral and mental health services, and expanding access to affordable child care. The budget also continues free community college and free school meals. 

Building on these investments, the budget reconvenes the Foundation Budget Review Commission to review the Chapter 70 formula and strengthen K-12 school financing. It also continues funding for the Commonwealth Cares for Children (C3) program and the Commonwealth Preschool Partnership Initiative (CPPI), helping more families access affordable child care and universally accessible pre-kindergarten. 

The budget continuescontinues to provide access to affordable higher education by making keeping public four-year colleges tuition- and fee-free for eligible students, reducing tuition and fees for middle-income students, and expanding SUCCESS wraparound supports to public colleges and universities, including UMass campuses for the first time.  

Upgrading roads, bridges and public transportation 

The FY27 budget continues Governor Healey's historic investments in transportation, advancing her $8 billion, 10-year plan to improve transportation networks across the state. It supports Regional Transit Authorities, including free fares, while making additional investments to stabilize MBTA finances and providing safer, more reliable service, and improves roadway safety through the deployment of new wrong-way detection technology that will identify wrong-way drivers and provide real-time alerts to transportation officials and law enforcement. 

Supporting cities, towns and schools 

It also delivers historic support for Massachusetts cities and towns, including a $40 million increase in Unrestricted General Government Aid, and $30 million in new funding distributed by population to better support small and rural communities. Combined with the recently enacted Fair Share supplemental budget, these investments provide historic support for cities, towns and school districts as they manage rising costs and continue delivering essential services. 

To help school districts meet rising special education costs, the budget provides a historic increase for the Special Education Circuit Breaker program. Combined with the recently enacted Fair Share supplemental budget, Massachusetts will provide a record $806.6 million for special education reimbursements in FY27. 

Making it easier to build housing and lower costs 

To help build more homes and lower housing costs, the budget includes policy reforms that create a more predictable permitting process, reduce unnecessary delays and provide greater certainty for housing developments moving through local review. These changes will help accelerate housing production while preserving local decision-making. 

Expanding access to affordable health care 

The budget continues Governor Healey's work to lower health care costs and expand access to care by extending ConnectorCare, a proposal championed by Governor Healey that helps more than 47,000 residents access affordable health insurance at a time when the Trump Administration is driving up costs. It also increases funding for home and congregate care for older adults by nearly $100 million and provides $1.34 billion for the Department of Mental Health to meet the growing demand for mental health services across Massachusetts. 

Protecting survivors and strengthening public safety 

The budget includes Governor Healey’s proposal to eliminate the statute of limitations for rape cases when DNA evidence identifies a suspect, ensuring offenders can be prosecuted regardless of when the crime occurred. It also requires Sexual Assault Evidence Collection Kits (SAECKs) to be preserved for a minimum of 15 years, helping ensure survivors have every opportunity to pursue justice. Additionally, the budget closes a loophole in the state's age of consent law by making it a crime for adults in positions of authority to have sexual relationships with 16- and 17-year-olds under their supervision. 

Strengthening Massachusetts’ long-term fiscal health 

The budget implements recommendations from the Stabilization Fund and Long-Term Financing Task Force, including multi-year budget forecasting and economic stress testing. It also allocates $51.2 million for the Commonwealth Stabilization Fund, a reserve account that enhances Massachusetts’ fiscal stability, and dedicates $20 million to the Disaster Relief and Resiliency Fund, proposed by Governor Healey to help communities respond to significant and unexpected costs caused by extreme weather. 

Benefitting retirees, this budget would also increase the statutory limit on how much a post-retiree can earn if they come back to work by $10,000 and create a reserve to fund cost-of-living adjustments for retirees on pensions using excess pension fund investment gains. 

“Grounded in fiscal responsibility and focused on building a more affordable future, the FY27 budget is a sound spending plan that does not raise any taxes or fees on our residents and businesses who are feeling the weight of federal uncertainty. This budget emphasizes our strong support for all 351 cities and towns, completes our commitment to local education funding through the Student Opportunity Act, and unlocks much-needed housing production,” said Senator Michael J. Rodrigues (D-Westport), Chair of the Senate Committee on Ways and Means. “Thank you to Governor Healey, Lieutenant Governor Driscoll, and Secretary Gorzkowicz and their teams for demonstrating the collaboration and partnership key to getting this budget signed into law. Also, thank you to Senate President Spilka, my friend and partner Chair Michlewitz, and all of our colleagues in the House and Senate for their dedication and hard work in delivering this balanced budget plan to the Governor in a timely fashion.” 

“The FY27 budget will better position the Commonwealth for the challenges that lie ahead while also ensuring that we protect the programs that some of our most vulnerable populations rely on the most. 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 & 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. I want to thank Speaker Mariano for his leadership during this budget process, as well as my fellow legislators for supporting this initiative, specifically my co-chair Senator Rodrigues, for their partnership in bringing this proposal over the finish line. I also want to thank Governor Healey and her administration for the strong partnership throughout this process.” 

The full budget can be viewed here: www.mass.gov/gaa 

The $63.42 Billion FY27 Budget Includes:  

Fair Share 

• $1.73 billion for education  
• $585.5 million for the Student Opportunity Act 
• $375 million for the Commonwealth Cares for Children (C3) program  
• $244.3 million for child care financial assistance 
• $180 million for universal free school meals  
• $137 million for free community college  
• $85 million for MASSGrant Plus financial aid scholarships 
• $58.4 million for K-12 education transportation reimbursement 
• $38 million for student SUCCESS programming at public higher education campuses 
• $15.5 million for universally accessible pre-k access through CPPI 
• $5 million for public higher education scholarships in in-demand professions 
• $2.3 million for fee subsidies for AP exams, professional development and AP class resources 
• $2 million to support an early education through higher education mental health framework for students and wraparound supports 
• $2 million for Green School Works  
• $970 million for transportation 
• $465.2 million for MBTA operating subsidy 
• $220.2 million for MassDOT service investments 
• $184.8 million for Regional Transit Authorities (RTAs)  

Education and Local Aid  

• Fully funds the final year of the Student Opportunity Act with $7.66 billion in Chapter 70 funding 
• $160 per pupil minimum aid  
• $1.2 billion in child care financial assistance in total to help families pay for child and before and after school care 
• $806.6 million for the Special Education Circuit Breaker 
• $475 million in total for the Commonwealth Cares for Children (C3) program 
• Over $400 million for state financial aid 
• $150.7 million for school transportation reimbursements, including $114.2 million for regional school transportation  
• $44.9 million to Reimagine High School through programs like MyCAP, Early College and innovation career pathways  
• $16 million in rural school aid 
• $13 million to support student behavioral and mental health and help school districts educate students on safe, responsible and healthy social media use 
• $500,000 to support food security on college campuses 

Housing and Homelessness  

• $278.3 million for the Massachusetts Rental Voucher Program (MRVP) 
• $259.9 million for Emergency Assistance Family Shelter and Services 
• $209 million for Residential Assistance for Families in Transition (RAFT)  
• $117.8 million for subsidies to Local Housing Authorities 
• $114.1 million for homeless individual shelters, supporting 2,800 shelter beds 
• $82.3 million for HomeBASE 
• $19.3 million for the Alternative Housing Voucher Program (AHVP) 
• $5 million to support front door diversion services  

Economic Development and Workforce Development 

• $15.6 million for summer jobs program for at-risk youth (Youthworks) to hire youth and young adults for summer and year-round jobs through the state’s YouthWorks program. 
• $9 million career technical institutes to train unemployed and underemployed individuals in high-demand occupations within the trades, construction, and manufacturing sectors across Massachusetts. 
• $8 million for the Workforce Competitiveness Trust Fund to train, upskill, and hire untapped talent in industries including health care, life sciences, education, information technology and more. 
• $8 million for MassHire career centers to provide workforce services, resources, and support to job seekers and employers. 
• Establishes the Workforce Productivity Sub-Fund to provide grants to help small businesses manage workforce needs related to employees taking paid family or medical leave. 
• $5.1 million for the Small Business Technical Assistance grants  
• $3.5 million for the Massachusetts Technology Collaborative  
• Expands the Workforce Investment Trust Fund to support workforce programs and sector-specific training while preserving services for low-income and underserved populations.  
• $1 million for Social Enterprise Operating Grants to invest in nonprofit social enterprises that create employment opportunities for people facing barriers to work. 
• $600,000 for the Massachusetts Downtown Initiative for technical assistance to help communities revitalize downtowns   
• Creates a steady revenue source for the Sports & Entertainment Events Fund to support major sports and entertainment events that drive tourism and economic activity. 

Health and Human Services 

• $3.35 billion for the Department of Developmental Services, to support elevated post-pandemic caseload and service needs  
• $1.10 billion for the Department of Public Health, supporting hospital staffing, drug purchasing, and core public health priorities  
• $17.3 million for maternal and child health  
• $828.2 million for the Department of Transitional Assistance’s main cash assistance programs to preserve historic benefit levels 
• $175 million for new Chapter 257 rates for human service providers, as well as $131.6 million to annualize FY26 rate increases  

Energy and the Environment  

• $159.8 million for the Department of Conservation and Recreation (DCR) 
• $56.2 million for the Massachusetts Emergency Food Assistance Program, to enhance support for food banks and help combat hunger 
• $15 million for Hazardous Waste Cleanup  
• $195,000 to expand shellfish testing in Buzzards Bay and reduce the duration of harvest closures 

Serving Our Veterans 

• $85 million to fully fund increased benefits for veterans under the HERO Act 
• Supports the launch of a Western Massachusetts office to improve regional access to programs and services for veterans  
• $46 million to effectuate the successful transition of the Chelsea Veterans Home 
• $39.8 million to open and operate the new, state-of-the-art Holyoke Veterans Home, providing world-class long-term care for up to 234 veterans. 

Criminal Justice and Public Safety  

• $10.6 million for Shannon Grants prevent youth and gang violence through community-based intervention and prevention programs 
• Approximately $9.7 million for reentry initiatives, including $7 million for the pre- and post- release services grant program  
• $5.5 million for nonprofit security grants 
• The FY27 budget creates enhanced protection for:  
• Young people by making it a crime for a mandated reporter (e.g., Teacher, Clinician, Police Officer, Clergy, etc.) to engage in sexual contact with a person between the ages of 16-18 over whom they have exercised custodial or supervisory authority. Before this legislative action, the age of consent loophole prevented prosecutions of this conduct. 
• Victims of Sexual Assault by allowing DNA-based exceptions to the statute of limitations where forensic analysis positively identifies perpetrators from evidence collected at the time of the crime. This change applies to sexual assault offenses contained within M.G.L. Chapter 265.  

Technology and Cybersecurity 

• $1.4 million for state matching funds for the State and Local Cybersecurity Grant Program 
• Improves access to digital services while strengthening cybersecurity, through: 
• Continuing to advance state government AI adoption through centralized guidance, secure solutions and partnerships with higher education 
• Continuing to consolidate IT services for executive branch departments