Press Room

Fair Share Investments in Transportation – $753 million

MBTA Supports, Improvements and Infrastructure Upgrades. $535 million for improvements and transportation infrastructure upgrades across the MBTA system, including:

• $445 million for MBTA operating assistance to support rapid rail and commuter rail services, including $15M for commuter rail rider affordability pilots to increase ridership;
• $60 million for commuter rail system maintenance and infrastructure upgrades;
• $20 million for the MBTA’s low-income fare relief program; and
• $10 million for statewide water transportation infrastructure improvements.

Regional Equity in Transportation. $218 million for regionally equitable transportation investments, including:

• $100 million for municipal winter relief, including $80 million to help support communities by distributing funds based on road mileage and $20 million for communities that experienced significant adverse impacts from recent winter storms;
• $50 million for capital improvements to equipment and facilities at regional transit authorities (RTAs), which serve and connect all regions of the Commonwealth;
• $45 million for efforts to improve workforce recruitment and retention at the RTAs;
• $15 million for on-demand micro-transit shuttles and Last Mile grants encouraging an innovative multimodal transit system; and
• $7 million for maintenance of unpaved roads.

FY26 Supplemental Appropriations – $491 million

Group Insurance Commission. $300 million for Group Insurance Commission costs driven by higher-than-anticipated utilization and pharmaceutical expenses.

DTA Caseworkers. $41.7 million for Department of Transitional Assistance (DTA) staffing, supporting caseworkers responsible for administering core assistance programs, and implementing recent federal eligibility changes.

Home Heating Assistance. $20 million for increased Low Income Home Energy Assistance Program (LIHEAP) fuel assistance, supporting households with children, veterans, disabled and elderly persons facing strain with their heating bills because of the colder than average winter.

Public Defense Court Costs. $12.3 million for Committee for Public Counsel Services court costs, including expert witness and vendor services tied to elevated caseloads.

Immigrant Legal Defense. $1 million for legal services to increase access to legal representation, advice, and advocacy for immigrants and refugees who are facing enhanced legal threats from the federal government.

Sheriffs’ Reserve. $54.4 million for payroll costs incurred during FY25 related to the direct care and custody of inmates while requiring the offices to submit detailed spending plans ensuring spending is in line with the legal responsibilities of the office.

Correctional Facility Costs and Operations. $31 million for Department of Correction (DOC) operations, reflecting funding shortfalls identified after the enactment of the FY26 General Appropriation Act primarily due to increased health care contract costs.

Affirming Care Trust Fund. $3.5 million to support health centers providing gender-affirming care services to vulnerable populations.

Cannabis Public Education Awareness. $1 million for a public education awareness campaign on youth prevention and responsible adult consumption of cannabis.

Health Care Affordability Working Group. $500K to support the Health Care Affordability Working Group’s ongoing work to recommend proposals that reduce health system costs and make health care more affordable for patients, families, and employers.

Reserves Contingency Funds for Public Higher Education. Responding to harmful federal cuts affecting the education and scientific research sectors, the Committee’s supplemental budget establishes a Public Higher Education Bridge Funding Reserve. The legislation invests $100 million for public higher education institutions to adapt to reductions in federal funding for research and development. This funding will help the state’s public universities strengthen research operations, talent pipelines, and strategic partnerships.

Public universities in Massachusetts are vital to the core of the state’s economic foundation. They attract talent, grow the workforce, and sustain industries critical to economic competitiveness. With steep cuts to federal research funding, including reductions from the National Institutes for Health (NIH), National Science Foundation (NSF), and National Oceanic and Atmospheric Administration (NOAA), public higher education institutions are under assault. These federal actions have stifled innovation and jeopardized jobs in sectors of our economy whose overarching mission is to advance discovery, improve health outcomes, and save lives.

Incentivizes New Housing Construction. Creates a new sales tax exemption to foster multifamily housing production and combat the negative impact of tariffs and inflation on housing development in Massachusetts. The exemption would apply to the sales of building materials used in the construction of approved affordable, moderate income, and middle-income housing projects.  It would be capped at $35 million per year. Building construction costs in Massachusetts are amongst the highest in the country, severely limiting new housing production and impacting our efforts to make housing more affordable. The Committee’s supplemental budget includes this exemption to double down on the Senate’s commitment to lower housing costs, encourage increased housing production, and ensure greater affordability.

Mitigates Federal Tax Changes. Responsibly phases in implementation of conformity with recent federal tax policy changes. Federal policies continue to cause economic uncertainty, including the federal One Big Beautiful Bill Act (OB3) signed into law last July. With prudent provisions in the Committee’s legislation, the state can mitigate near-term revenue impacts in FY26 and FY27 associated with the OB3 tax changes without sacrificing the state’s competitive edge or risking cuts to programs and services that residents depend on.

Encourages Healthy Food Assistance. Creates a new tax credit—up to $5,000—for Massachusetts farmers that donate excess produce to food banks and pantries. This provision further enhances the Senate’s efforts to address food insecurity, support farmers, cut down on food waste, and provide the resources needed for food banks and pantries to serve our residents with nutritious options.

The Committee’s consolidated Fair Share supplemental budget is comprised of the following revenue sources:

• $1.34 billion in resources collected through the Fair Share surtax, which is paid by households in Massachusetts that earn more than $1 million per year; and
• $491 million in general fund revenues collected in fiscal year 2026.