FY26 Senate Ways and Means Budget Summary

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

May 8, 2025 – On May 6, the Senate Committee on Ways and Means (SWM) released their FY26 budget. Their budget proposal is a $61.32 billion package, a 6.3% increase over the final FY25 budget that was signed into law in July in 2024 and it is a 1.1% decrease over the Governor’s proposed FY26 budget and .3% decrease over the House’s budget. This is the third year that Fair Share surtax revenue is available, which is split between education ($1.185 billion or 61%) and transportation ($600 million or 31%) with an additional $165 million or 8% being transferred to the Education and Transportation Reserve Fund via Outside Section 81. The bill also includes a $1 million increase over FY25 in funding for the District Local Technical Assistance program, and level funding for the Senator Charles E. Shannon Community Safety Initiative.

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 and FY25, providing one-time funds for transportation and education infrastructure and programs. The House and Senate have taken very different approaches to allocating these additional Fair Share funding with the House proposing 76% of the supplemental budget going to transportation investments to try to right size the historic higher investment in education to work to get closer to a 50/50 split in the two critical areas. The Senate proposes 52% of the supplemental budget going towards transportation.

What comes next: Senate members have until 2 p.m. on May 9 to file amendments and the membership is expected to debate the bill beginning on May 20. Following passage in the Senate, a conference committee will be appointed to resolve the differences in the two chamber’s 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 or soon after.

Key MAPC Line Items

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

A summary of other key priorities is below. The full text of the Senate Ways and Means FY26 budget, and 90 outside sections can be found here.

Local Aid

UGGA: Unrestricted General Government Aid (UGGA) (1233-2350) is proposed at $1.333 billion by SWM. This is level funding with the Governor’s budget, but $29 million more than the House’s budget, which was the same amount included in the final FY25 budget. UGGA is a crucial tool for cities and towns that funds non-education portions of municipal budgets.
Chapter 70: Both SWM and the House budgets suggest $7.361 billion for Chapter 70 funding (7061-0008) which increases minimum aid funding to $150 per pupil. While the House provided $7.121 billion Chapter 70 and an additional $240 million in Fair Share funding, SWM recommends that $7.096 billion be provided via Chapter 70 funding with an addition $265 million in Fair Share dollars.
Universal School Meals: Universal school meals are once again included in the SWM budget proposal and are split between two line items. The first is $170 million in Fair Share funding for reimbursement to schools. This is in line with the Governor’s budget but $20 million less than the House’s budget. The second is $4.47 million or 6% more than the $4.45 million suggested for the School Breakfast program (7053-1925) by the House. Combined, the SWM budget proposal is 11% less than what the House put forward.
McKinney-Vento Homeless Student Transportation: SWM, House, and the Governor’s budgets include $28.6 million for the McKinney-Vento Homeless Student Transportation program (7035-0008). This is level with the final FY25 budget.

Public Health and Safety

Healthy Incentives Program (HIP): The Healthy Incentives Program (HIP) (4400-1004) is proposed at $25.4 million, a 35% increase from the Governor’s proposal and 27% more than the $20 million in the House’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): The Governor, House, and SWM proposals include $9.2 million for the State Action for Public Health Excellence (SAPHE) grant program (4512-2022). 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 House budget only included $14 million and the SWM budget includes no money for this fund. 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 $253.3 million, a decrease of $4.8M over the House’s budget but in line with the Governor’s FY26 proposal. This is still $34M 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 $225 million, a 14% increase over FY25 and $23 million more than the Governor’s FY26 proposal. It is also $17.6 million more than the House’s budget. 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. Both SWM and the House’s budgets propose 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 made to services offered to limit time and eligibility for the program.
Access to Counsel: Both the House’s 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, the House proposed $3 million. Additionally, the House included $5 million for immigration legal services program (4003-0124). Senate Ways and Means did not include any funding for either of these programs.

Transportation

MBTA & Regional Transit Authorities (RTAs): MBTA (1595-6369) funding is proposed at $500 million, a 59% increase over FY25 but less than the $687 million put forward by the Governor and the House. While the House’s budget proposal stipulates that $40M will go towards the MBTA workforce academy and $10M for ferry operation grants, the SWM budget does not stipulate an amount that should be allocated to these programs. RTA funding (1595-6370) was proposed at $214 million by SWM, $10M more than the House the Governor’s proposals.

Environment

Department of Environmental Protection: The Governor, House, and SWM budgets all propose that DEP be funded at $54.1 million (2200-0100), a slight increase over FY25.
Department of Public Utilities: SWM and House budgets include $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: SWM suggests that $325 million be allocated for the Childcare Grants to Providers (1596-2410). This is $35 million less than the House’ budget proposal, which includes $360 million for Childcare Grants to Providers, but $50 million more than the Governor’s budget. In all instances, the funding is provided by Fair Share surtax funding.
MassReconnect: SWM proposes funding the MassReconect and free community college program at $120 million (1596-2501). However, the Governor and HWM budgets propose funding the MassReconnect program (1596-2418) at $24 million but both provide an additional $94 million for free community via line item (1596-2501). MassReconect 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 SWM proposal.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. SWM’s proposal does not go as far as the Governor and only would transfer $600 million to the Commonwealth Transportation Fund, reducing the bonding ability to ensure funding for the other proposed transportation bills.

Outside Sections of Note

Only in Senate Ways and Means

Housing Production Dashboard: Requires the Executive Office of Housing and Livable Communities to maintain publicly accessible online dashboard that displays the sources of funds for all housing production and preservation as well as the number of units included, affordability mix, and whether the units will be rented or owned, among other requirements.
Transportation Funding Tracking Website: Requires MassDOT to similarly create a publicly available website that tracks spending and progress on projects that cost more than $1 million.
Fare-Free Regional Transit Authorities: Allows RTAs to operate fare free transit and report on ridership to MassDOT.
Unrestricted General Government Aid Distribution Review Commission: Creates a commission to study the method used to distribute UGGA to municipalities. The commission will evaluate the effectiveness and equity of the current method and make recommendations to maximize these outcomes in the future. The commission will include the Secretary of ANF, MMA, Mass Budget and Policy Center and 3 members appointed by the Governor. The report is due by July 1, 2026.

Included in SWM, House, 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. All three proposals only apply to FY26.
Residential Broker Fees: SWM budget bars realtors or lessors from charging more than the first and last month's rents along with a security deposit of an additional month. Tenants could still be responsible for a broker’s fee if they contracted with them. The Governor’s budget would require that any residential broker fee be paid by the owner and not the renter and the House’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 $600 million from $250 million. The Governor proposed increasing this to $765 million and the House proposed $500 million

Only in the House’s 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 House and Governor’s Budget Proposals but not SWM.

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 SWM or HWM Budget Proposals

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.