Gov. Healey Submits Proposed 2026 Fiscal Budget
Massachusetts Gov. Maura Healey has proposed increasing state spending to more than $62 billion for the 2026 fiscal year. The spending increase relies on increased income tax collections from the state’s wealthiest residents and several strategies to balance the budget through a plan unveiled on Wednesday, Jan. 22.
Healey’s proposed fiscal budget continues support for universal school meals, significantly overhauls transportation financing, and explores new policies related to traffic violation enforcement cameras.
Healey’s budget plan relies on approximately $1 billion in one-time revenue sources, although administration officials will blunt some of this revenue by replenishing trust funds and other reserves over the duration of the year.
Education
Healey’s proposed budget would support another year of K-12 school aid increases through the Student Opportunity Act using surtax dollars to fund part of the growth. The budget would continue to cover free school meals, C3 grants to early education providers, and a ConnectorCare pilot to broaden eligibility for public insurance.
Transportation and City and Town Infrastructure
Under the proposed budget, much of Healey’s transportation funding would be supported, including $687 million directed to the MBTA. The spending bill would also direct 2.2% of unrestricted general government aid dollars to cities and towns.
A report by WHDH-TV 7 News Boston noted, “Healey’s team sought to portray the budget as proposing 2.6% more spending than all of what the state will spend in fiscal 2025, including supplemental spending, calling that rate lower than inflation.”
The surtax on higher earners supports much of the proposed annual growth in the budget proposal. Legislative budget writers and Haley’s administration agreed to commit $620 million more from that pool in fiscal year 2026 compared to fiscal year 2025, whose budget was based on a more conservative estimate of how much money the levy would create for the state.
Healey’s budget heads to the House and Senate for review.