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A Look into the Governor’s 2026 Budget Recommendations

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A Look into the Governor's 2026 Budget Recommendations

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

January 27, 2025 – On January 22, Governor Healey released her FY26 budget recommendations. The Governor’s budget proposal is a $61.5 billion package ($59.577 billion not including surtax revenue and medical assistance trust fund transfers), a 2.6% increase over the final FY25 budget that was signed into law in July 2025. This is the third year that Fair Share surtax revenue is available, which is again split between education ($1.598 million) and transportation ($1.673 million). These totals are split between this budget and the most recent FY25 supplemental budget include unallocated FY24 surtax funding.

The bill includes level funding for the District Local Technical Assistance program and decreased funding for the Senator Charles E. Shannon Community Safety Initiative. Grant Assistance Program funding (formally referred to as DLTA-A), was not included in the Governor’s recommendations. Below is a summary of several key line items and outside sections that impact MAPC served communities.

What comes next: The budget proposal is headed next to the House for that branch’s consideration with debate anticipated in April and the Senate’s debate expected in May. The Joint Ways and Means Committee will hold oversight hearings in the coming months, prior to debate, with each agency offering testimony in support of the Administration’s proposal. 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 FY26 - Governor Budget
8100-0111 Senator Charles Shannon Community Safety Initiative $12.8 million $13.4 million $10 million
1599-0026
 		 District Local Technical Assistance $3 million $3.4 million $3 million
Community Compact Grants $0 $2 million $2 million
Efficiency and Regionalization Grant $600,000 $2 million $0
Grant Assistance Program (Formally called DLTA-A) $2 million $2 million $0

Local Aid

  • UGGA (Unrestricted General Government Aid) (1233-2350) is proposed at $1.33 billion, a slight increase over the $1.30- billion allocated in FY25.
  • Chapter 70 (7061-0008) is proposed at $7.09 billion, an increase of 3.3% over FY25. Minimum aid is set at $75 per pupil with assistance from Fair Share Funding.
  • Education The special education circuit breaker (7061-0012) is proposed at an increased level of $532 million. Regional school transportation reimbursements (7035-0006) are proposed at $72.1 million with $50 million available for further reimbursement through (1596-2451). McKinney-Vento homeless student transportation (7035-0008) is level funded at $28.6 million in line with the FY25 budget. However, charter school reimbursements (7061-9010) are proposed at $179 million, a decrease of $19 million from FY25.

Transportation

  • MBTA (1595-6369) is proposed at $687 million, a 119% increase over FY25.
  • RTAs (1595-6370) are proposed at $204 million, which is in line with the FY25 budget- when accounting for Fair Share dollars. This year, $94 million was recommended for operational funding while an additional $110 million in Fair Share funding was recommended to be allocated as follows: $66 million for operational enhancements, $30 million for fare equity programs, $10 million on regional connectivity grants, and $4 million to support the Community Transit Grant Program.
  • MassDOT (1595-6368) is proposed at $617 million, $79 million more than FY25.

Housing

  • MA Rental Voucher Program (MRVP) (7004-9024) is proposed at an increased level at $253 million, an increase of $34 million (15%) over FY25.
  • Residential Assistance for Families in Transition (RAFT) (7004-9316) is proposed at $202 million, a 2.5% increase over $197 million included in last year’s budget, but a decrease from the $253 million, which is expected to be spent in FY25.
  • HomeBASE (7004-0108) is proposed at $57 million, which is level with last year’s budget.
  • Tenancy Preservation Program (7004-3045) is not included in this year’s budget recommendations. Last year it was funded at $2 million. The Governor expects that MassHousing will assume program costs rather than HLC.
  • Emergency Assistance Family Shelters and Services (7004-0101) is proposed at $325 million and assumes policies proposed in the pending H.51 supplemental budget are adopted. This is level funded compared to FY25 but does not account for additional funding made available in the supplemental budget.
  • Right to Counsel (0321-1800): The governor’s budget proposes $2.5 million dollars to increase access to legal counsel for low-income tenants and low-income owner occupants in eviction proceedings. This recommendation is in line with the final FY25 budget.

Environment

  • Department of Environmental Protection (2200-0100) is proposed at $54.1 million, a very slight decrease over FY25.
  • Climate Adaptation and Resiliency (2000-0101) is proposed at $5.1 million, a $2.86 million decrease from FY25.

Public Health and Safety

  • Healthy Incentives Program (HIP) (4400-1004) is proposed at $18.8 million, a 25% increase from last year’s budget.
  • SNAP Participation Programs (4400-1001) are proposed at $5 million, similar to last year’s final budget.
  • Universal School Meals (7053-1925 and 1596-2422) is proposed at $174.5 million, roughly in line with last year’s budget.
  • SAPHE (4512-2022) is proposed at $9 million, a 28% decrease from the $12.5 million dollars, roughly in line with last year’s budget.
  • Childcare and Early Education Programs (3000-4060, 1596-2452, 1596-2410) are proposed at $890 million.

Outside Funding Sources

FY26 is the third year that Fair Share funding, which established a 4% surtax on annual personal incomes over $1 million, is available to support education and transportation. The surtax is expected to generate $1.95 billion in funding that will be allocated to the Education and Transportation Fund where transportation proposals receive $815 million, and education proposals receive $1.135 billion. Additionally, $1.3 billion in FY25 Fair Share funds that were collected in excess of anticipated funds were split between transportation ($858 million) and education ($463 million). Across both bills transportation is recommended to receive $1.7 billion (51%) and education is recommended to receive $1.6 billion (49%) Notable education proposals include:

  • $275 million additional dollars for the Commonwealth Cares for Children (C3) (1596-2410) program, raising the total investment to $200 million.
  • $98 million for Childcare Grant to Providers (1596-2410) that support capacity to maintain current rates paid to providers participating in the state’s childcare financial assistance programs.
  • $94 million for free community college

Noteworthy Outside Sections:

  • Gaming Fund Splits
  • Speed Camera Enforcement: Authorizes MassDOT to establish a speed camera enforcement program. It also allows municipalities to enforce posted speed limits through speed cameras.
  • Taxation of Products Containing Synthetic Nicotine: Taxes synthetic nicotine (like Zyn or Velo pouches) like tobacco products.
  • Removes the sales taxation exemption for candy and confectionary products: Subjects candy and confectionary to a sales tax of 6.25%.
  • Universal Adult Vaccine Program: Allows DPH to establish and administer an adult vaccine distribution program.
  • Residential Broker Fees: Requires that any residential broker fee be paid by the owner and not the renter.
  • 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.