Press Room

The Massachusetts House of Representatives today passed a supplemental budget to close the books on Fiscal Year 2026. The bill addresses important time-sensitive deficiencies, provides support for maternal mental health services and for vital programs including MassHealth, the Department of Transitional Assistance (DTA), and for the life sciences sector. It also includes policy sections to address emerging issues such as the use of AI in political advertising. The $2.354 billion bill includes $1.524 billion in net spending.

“From funding for critical services and programs like maternal mental health supports and MassHealth, to policy changes designed to ensure that artificial intelligence and taxpayer money aren’t used inappropriately in political advertising – this supplemental budget addresses a number of important, time sensitive issues as we work to wrap up the fiscal year,” said House Speaker Ronald J. Mariano (D-Quincy). “I want to thank Chairman Michlewitz for his hard work, as well as all my colleagues in the House for recognizing the importance of the funding and reforms included in this supplemental budget.”

“This supplemental budget will close the books on FY26 in a balanced and fiscally responsible manner. By making critical investments into much needed programs in healthcare, DTA Caseworkers, and early education to name a few, the Commonwealth will be in a strong fiscal position for FY 27 and beyond,” said Representative Aaron Michlewitz, Chair of the House Committee on Ways & Means (D-Boston). “I want to thank Speaker Mariano for his dedication to these issues, as well as all my colleagues in the House for supporting this proposal.”

Key investments include:

• $1.8 billion gross ($1.03 billion net) for MassHealth
• $159 million for snow and ice removal costs incurred at the beginning of 2026
• $78.9 million for unemployment insurance interest repayments
• $56 million to increase nursing facility rates
• $54.5 million to support the hiring of additional DTA caseworkers
• $22.5 million for no-cost calls for the Department of Correction and county sheriffs
• $18.5 million for the Early Childcare Rate Reserve
• $13.8 million for the Massachusetts Office for Victim Assistance (MOVA) to help offset federal funding cuts
• $10 million for the Massachusetts Life Sciences Center
• $5.6 million to implement cannabis legislation enacted earlier in 2026
• $4 million to support rest homes across Massachusetts
• $2.25 million for maternal health needs, including $250,000 for the Massachusetts Child Psychiatry Access Program’s MCPAP for Moms statewide initiative

In addition to key investments, the bill passed today includes several policy provisions:

• Prohibits the Commonwealth’s constitutional officers from spending or authorizing the use of public funds for advertisements or promotions to build personal recognition. It preserves their ability to use public funds to inform residents about state programs, as long as those communications are not intended to establish personal recognition.

• Regulates the use of artificial intelligence in political advertisements. The bills would require the disclosure of AI use in political advertisements and would ban deceptive communications about a candidate or about the electoral process within three months of an election.

• Authorizes online lottery revenues to be distributed to the Early Education Grant Fund.

• Increases the Massachusetts School Building Authority’s grant limit from $1.2 billion to $1.4 billion and permits up to 10 percent in additional grants above that limit each fiscal year

• Directs remaining excess capital gains tax revenue to two funds: 85 percent to the Transitional Escrow Fund, estimated at $207.7 million and 15 percent to the Commonwealth Stabilization Fund, estimated at $36.6 million.

• Eliminates the $10 surcharge imposed on car-sharing organization rentals.

• Ratifies two additional collective bargaining agreements.

• Preserves revenue generated under the federal 340B drug program for hospitals and community health centers until MassHealth secures certain federal expenditure approvals.

The bill passed the House of Representatives 152-0 and now goes to the Senate for review.