Governor files $1.15B FY26 supplemental budget

Along with her fiscal 2027 state budget plan, Gov. Maura Healey today also filed a fiscal 2026 supplemental budget bill that would allocate $1.15 billion in fiscal 2025 surplus revenue derived from the surtax on incomes over $1 million, which must be invested in transportation and education initiatives.

Notably, the supplemental budget would allocate $150 million for the Special Education Circuit Breaker to complement the $652.7 million proposed in House 2, for a total of $802.7 million, representing an 18.8% increase over fiscal 2026.

Her supplemental budget bill (HD. 5607) is intended to support fiscal 2026 initiatives and complement her $62.8 billion state spending plan for fiscal 2027. It would invest $785 million in the state’s transportation system and $358 million in education programs.

The supplemental budget also proposes $7 million for the recently created Unpaved Roads Grant Program, which helps municipalities repair, maintain, and improve unpaved roads, primarily in rural communities.

Proposed transportation allocations include:
• $644.7 million for MBTA operations and response to Federal Transit Administration recommendations
• $80 million to the Massachusetts Department of Transportation for workforce development, unpaved road grants, and a new tax credit for use of sustainable aviation fuel
• $60 million for regional transit authorities, including $15 million for microtransit and “last mile” transit grants to expand options for commuters to get to public transit systems

In addition to the Special Education Circuit Breaker investment, proposed education allocations include:
• $150 million to replenish the Early Education and Care Trust Fund, used to support the early education system and daycare providers
• $25 million for tutoring to help children in grades 1 to 3 develop foundational literacy skills
• $18 million to supplemental financial aid for community college students through MassReconnect
• $10 million for a new multi-year K-12 school initiative, called Accelerating Achievement, focused on rapidly improving student outcomes in the state’s lowest-performing schools
• $5 million for adult basic education and English for Speakers of Other Languages services, with an emphasis on vocational learning