On Nov. 25, Gov. Maura Healey signed a $2.3 billion supplemental budget to address deficiencies and meet time-sensitive budget needs as Massachusetts officially closes the books on fiscal 2025.

The House and Senate both passed a compromise version of the bill on Nov. 19, the last day of formal legislative sessions until January.

The largest sums in the law are dedicated to health care, including $1.67 billion for MassHealth (with a net cost to the state of approximately $539 million after federal reimbursements) and $374 million for hospitals formerly run by the now-bankrupt Steward Health Care system.

Of interest to municipalities, the law includes $1.25 million for fiscal 2023 and 2024 payments to cities and towns for portions of the state’s marijuana excise tax dedicated to municipalities that host social equity marijuana retailers.

The law includes an outside section to assist many municipalities and other health insurance units impacted by recent fiscal challenges at the Hampshire County Group Insurance Trust. Section 175 allows any municipality or district belonging to the Hampshire County Group Insurance Trust to spread the cost of an unexpected health-insurance deficit incurred in either fiscal 2026 or fiscal 2027 (but not both) over up to five years. To use this option, the community must formally withdraw from the trust and notify the Massachusetts Division of Local Services by June 30, 2027. The Department of Revenue is expected to provide further guidelines.

Other noteworthy appropriations from the law include:
• $60.7 million for snow and ice removal
• $50 million for housing preservation and stabilization
• $18.5 million for public health hospital operations
• $12 million for Universal School Meals
• $10 million to support operations at the Department of Transitional Assistance to ensure access to anti-hunger programs related to changes made to the Supplemental Nutrition Assistance Program program
• $10 million to support an information campaign on recent Medicaid work requirements and vaccine policy changes made by the federal government
• $10 million for hosting costs associated with World Cup matches in Foxborough next year, with a requirement that state allocations be privately matched

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