FY26 House Ways and Means Budget Summary

FY26 House Ways and Means Budget Summary - Bill H.4000

Questions? Contact the MAPC Government Affairs Department: Leah Robins, Norman Abbott, and Georgia Barlow

April 21, 2025 – On April 16, the House Committee on Ways and Means (HWM) released their FY26 budget (Bill H.4000). Their budget proposal is a $61.4 billion package, a 6% increase over the final FY25 budget that was signed into law in July of 2024. This is the third year that Fair Share surtax revenue is available, which is again split between education ($1.18 billion or 61%) and transportation ($765 million or 39%). The bill includes level funding for the District Local Technical Assistance program, and $10.1 million in funding for the Senator Charles E. Shannon Community Safety Initiative, a $2.7 million decrease in line with the Governor’s proposal. Grant Application Program (GAP) funding was not included in this year’s House Ways and Means proposal.

This year’s budget presents a number of new challenges for the Commonwealth — the most notable of which is the uncertainty around federal funding. MAPC is grateful for the leadership of House Ways and Means, Chairman Michlewitz, and his staff in assembling this proposal.

Other funding bills in motion: The FY26 budget is moving alongside multiple other funding bills that have implications for municipalities. H.53, An Act financing long-term improvements to municipal roads and bridges, was filed by the Governor and will authorize Chapter 90 funding for FY26. H.55, An Act making appropriations for the fiscal year 2025 to provide for supplementing certain existing appropriations and for certain other activities and projects, will allocate nearly $1.3 billion in surplus fair share funding from FY24, providing one-time funds for transportation and education infrastructure and programs.

What comes next: House members have until April 18 to file amendments, and the membership is expected to debate the bill beginning on April 28. Senate Ways and Means’ budget proposal is expected in May, which will be followed by debate in that chamber. Following passage in both chambers, a conference committee will be appointed to resolve the differences in the two chambers’ bills. The FY26 fiscal year begins on July 1, so it is anticipated that a final bill will be signed into law by that date—although it could be later.

Key MAPC Line Items

Line Item		FY25 Final Budget	MAPC’s FY26 - Request	H.1 - Governor Budget	H.4000 - HWM Summary
8100-0111	Senator Charles Shannon Community Safety Initiative	$12.8 million	$13.4 million	$10.087 million	$10.087 million
1599-0026	District Local Technical Assistance	$3 million	$4 million	$3 million	$3 million
	Community Compact Grants	$0	$2 million	$6 million	$0
	Efficiency and Regionalization Grant	$600,000	$2 million	$2 million	$0
	Grant Assistance Program	$2 million	$2 million	$0	$0

A summary of other key priorities is below. The full text of the House Ways and Means FY26 budget, and 83 outside sections can be found here.

Local Aid

UGGA: Unrestricted General Government Aid (UGGA) (1233-2350) is proposed at $1.308b by HWM. This is level funding compared to FY25 but $29 million less than the Governor proposed in her budget. UGGA is a crucial tool for cities and towns that funds non-education portions of municipal budgets.
Chapter 70: HWM’s proposal continues to move towards implementation of the Student Opportunity Act obligations with $7.121 Billion for Chapter 70 (7061-0008) and an additional $240M to further increase the per pupil minimum aid to $150 per student. $240M in supplemental funding comes from Fair Share Revenue (1596-2438). Under the Governor’s proposal, the minimum aid would be $75 per student.
Universal School Meals: Universal school meals are once again included in the budget proposal and are split between two line items. The first is $190 million in Fair Share funding for reimbursement to schools. This is $20 million more than the Governor’s budget. The second is $4.45 million for the School Breakfast program (7053-1925). This is in line with the Governor’s proposal.
McKinney-Vento Homeless Student Transportation: Both HWM and the Governor’s budgets include $28.6 million for the McKinney-Vento Homeless Student Transportation program (7035-0008).

Public Health and Safety

Healthy Incentives Program (HIP): The Healthy Incentives Program (HIP) (4400-1004) is proposed at $20 million, a 6% increase from the Governor’s proposed and roughly in line with last year’s budget. This program provides a dollar-for-dollar match for each SNAP dollar spent on fruits and vegetables at farmers markets, farm stands, and Community Supported Agriculture Programs.
State Action for Public Health Excellence (SAPHE): Both the Governor and HWM proposals include $9.2 million for the State Action for Public Health Excellence (SAPHE) grant program. This is a 9% decrease from last year’s budget. The SAPHE Grant Program strengthens local public health services and protections to residents in 91% of Massachusetts’ cities and towns through cross-jurisdictional sharing.
Disaster Relief Fund: While the Governor’s budget included $15 million in Fair Share dollars for the “Disaster Relief and Resiliency Fund”, the HWM budget only included $14 million. This is the second year that this program has been funded. The account is a special revenue fund administered by Administration and Finance (A&F) to support disaster relief efforts for state, local, and regional governments, businesses, nonprofits, or residents.

Housing

Massachusetts Rental Voucher Program (MRVP): The MA Rental Voucher Program (MRVP) (7004-9024) is proposed at $258.1M, an increase of $4.8M over the Governor’s FY26 proposal and $39M more than last year’s budget. Through a combination of project-based vouchers and mobile vouchers, MRVP helps to move homeless families and individuals out of motels, off waiting lists, and into decent homes they can afford.
Residential Assistance for Families in Transition (RAFT): The Residential Assistance for Families in Transition (RAFT) program (7004-9316) is proposed at an increased level of $207 million, a 5% increase over FY25 and $5 million more than the Governor’s FY26 proposal. This program provides rental, mortgage, utility, and relocation assistance for those at risk of losing their home to prevent and address displacement and foster housing stability among housing insecure households.
Emergency Assistance Family Shelters and Services: It is no secret that the Emergency Assistance Family Shelters and Services program (7004-0101) has become a pressing and contentious issue in the last few years. HWM’s budget proposes funding the program at $275 million; $50M less than the Governor’s FY26 proposed budget and the final FY25 budget. During FY25 supplemental budgets, there were changes to services offered to limit time and eligibility for the program.
Access to Counsel: Both the HWM budget and the Governor’s budget propose funding to increase access to legal counsel for low-income tenants and low-income owner occupants in eviction proceedings (0321-1800). While the Governor proposed $2.5 million for this program, HWM proposed $3 million. Additionally, HWM included $5 million for immigration legal services program (4003-0124), which was not included in the Governor’s budget.

Transportation

MBTA & Regional Transit Authorities (RTAs): The MBTA (1595-6369) funding is proposed at $687 million, a 119% increase over FY25 and in line with the Governor proposal. However, the HWM proposal stipulates that $40M will go towards the MBTA workforce academy and $10M for ferry operation grants. RTA funding (1595-6370) was proposed at $204 million by HWM and the Governor.

Environment

Department of Environmental Protection: The Governor and HWM both proposed that DEP be funded at $54.1 million (2200-0100), a slight increase over FY25.
Department of Public Utilities: HWM budget includes $18.8 million for DPU operations (2100-0012). This is an 8% or $2 million decrease in funding over FY25 and the Governor’s proposal. DPU provides critical oversight for the implementation of emissions targets for the Commonwealth.

Economic Development

Childcare Grants to Providers: The HWM budget proposal includes $360 million for Childcare Grants to Providers (1596-2410). This is $90 million more than the Governor’s budget. In both instances, the funding is provided by Fair Share surtax funding.
MassReconnect: Both the Governor and HWM budgets propose funding the MassReconnect program (1596-2418) at $24 million. This program provides free community college to Massachusetts residents over 25 years of age.
Fair Share Revenue: FY26 is the third year that the Fair Share Amendment, which establishes a 4% surtax on annual personal incomes over $1 million, is available to support education and transportation. The Fair Share revenue projection is $2.4 billion, but both the Governor and HWM have conservatively allocated $1.95B in their FY26 proposals. Transportation line items are proposed to receive $765 million (39%), and education proposals receive $1.18 billion (61%) in the HWM proposal.
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In FY25, the state allocated $250 million to the Commonwealth Transportation Fund to be leveraged for bonding for transportation infrastructure projects. The Governor proposed increasing this to $765 million and this is one of the centerpieces of the Governor’s plan to leverage borrowing to yield $5 billion over the next 10 years for rail, roads, bridges, RTAs, culverts and more. HWM’s proposal does not go as far as the Governor and only would transfer $500 million to the Commonwealth Transportation Fund, reducing the bonding ability to ensure funding for the other proposed transportation bills.
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When factoring in H.55, An Act making appropriations for the fiscal year 2025 to provide for supplementing certain existing appropriations and for certain other activities and projects, which will allocate nearly $1.3 billion in surplus fair share funding from FY24, education and transportation are slated to each receive $1.28 billion.

Outside Funding Sources

New to HWM Budget

Vocational-Technical Education Admissions Task Force: Creates a taskforce to make recommendations on vocational-technical education admissions and wait list policies.
Telehealth Task Force: The task force will investigate the barriers and impediments to the practice of telehealth across state lines.

Included in Both HWM and Governor’s Budget Proposals

Gaming Fund Splits: Directs 100% of the revenue received from a category 1 casino licenses to several funds. However, the Casino Mitigation Fund is not included in this breakdown, meaning that the Mitigation fund will be without a source of revenue for the second year in a row.
Residential Broker Fees: While the Governor’s budget would require that any residential broker fee be paid by the owner and not the renter, HWM’s budget proposes a system where a tenant may still be responsible for paying the residential broker fee under certain conditions.
Education and Transportation Fund Technical Update: Increases the amount of dedicated transportation income surtax revenue to the Commonwealth Transportation Fund to $500 million from $250 million. The Governor proposed increasing this to $765 million.
Health Connector 500% FPL Connector Care Pilot Extension: Extends the Connector Care pilot for an additional year.

Included in the Governor’s Budget & Not Included in HWM’s Budget

Sales Tax on Candy: Subjects candy and confectionary to the 6.25% sales tax.
Speed Camera Enforcement: Authorizes MassDOT to establish a speed camera enforcement program. It also allows municipalities to enforce posted speed limits through speed cameras.
Education and Transportation Fund Technical Update: Increases the amount of dedicated transportation income surtax revenue to the Commonwealth Transportation Fund to $765 million from $250 million.
Taxation of Products Containing Synthetic Nicotine: Taxes synthetic nicotine (like Zyn or Velo pouches) like tobacco products.
Universal Adult Vaccine Program: Allows DPH to establish and administer an adult vaccine distribution program.
Charitable Donation Deductions: Caps state charitable deductions for families at $10,000 and for individuals at $5,000.
Health Connector 500% FPL Connector Care Pilot Extension: Extends the Connector Care pilot for an additional year.