BOSTON — Governor Maura Healey signed the Commonwealth’s $63.4 billion Fiscal Year 2027 budget into law in early July, delivering record investments in public education and transportation without raising taxes or fees.
The budget, which passed the Legislature on July 1 and was signed without any vetoes, represents a 3.9% increase over the previous fiscal year. It is anchored by $2.7 billion from the state’s Fair Share Amendment — the “Millionaire’s Tax” — which is constitutionally dedicated to education and transportation spending.
Record Education Funding
At the heart of the spending plan is $7.66 billion in Chapter 70 aid to public school districts, a $297 million increase over FY2026 and the highest level ever. This fully funds the final year of the Student Opportunity Act, Massachusetts’ landmark 2019 law aimed at closing opportunity gaps between wealthy and under-resourced districts. Every district will receive at least $160 per pupil in minimum aid.
The budget also allocates $180 million for universal free school meals — covering nearly 150 million meals annually — $475 million for early education through the C3 grant program, and $137 million for free community college through the MassEducate and MassReconnect programs that began last year.
“We’re helping families afford child care, health care and higher education,” Healey said upon signing the budget.
Transportation: Over $1 Billion for the MBTA
The budget directs $465 million in direct appropriations to the MBTA, combined with an additional $595 million from the Fair Share supplemental budget passed earlier this spring — totaling over $1 billion in new transit investment. The infusion fully addresses the MBTA’s projected operating deficit and supports low-income fare relief, water transportation pilot programs, and workforce development initiatives.
Regional transit authorities received $217 million, including $40 million to maintain fare-free transit in communities across the state.
Municipal Aid, Housing and Health Care
Unrestricted General Government Aid (UGGA) to cities and towns rose to $1.363 billion, a $40 million increase distributed through a new per-capita formula that benefits growing Gateway Cities.
The budget extends the ConnectorCare expansion pilot through 2027, preserving subsidized health coverage for more than 115,000 residents, and maintains a $1,750 annual cap on MassHealth adult dental services.
Housing and shelter assistance totals roughly $1.08 billion, alongside permitting reforms designed to accelerate housing production.
Rainy Day Fund and Fiscal Discipline
The state deposited another $51 million into its Stabilization Fund, which is projected to reach a historic $8.2 billion balance — the largest in Massachusetts history and one of the strongest reserve funds per capita in the nation.
The budget achieved this without any new taxes or fees, a point legislative leaders emphasized. “We are making record investments while protecting taxpayers,” said Senate Ways and Means Chairman Michael Rodrigues.
Policy Reforms Included
Beyond spending, the budget carries several notable policy provisions:
- Elimination of the statute of limitations for rape cases where DNA evidence identifies a suspect.
- A provision closing a loophole that allowed adults in positions of authority to have sexual relationships with 16- and 17-year-olds under their supervision.
- Repeal of the “Learnfare” law, which had cut welfare benefits for children who missed school.
- Funding for wrong-way driving detection technology on state highways, named in memory of Trooper Kevin Trainor, who was killed in a wrong-way crash.
- A new “blue envelope” program for drivers with autism to improve communication during traffic stops.
- $56.1 million for emergency food assistance and $21.5 million for the Healthy Incentives Program (HIP), which doubles SNAP benefits at farmers’ markets.
What’s Next
With the budget signed, Beacon Hill turns its attention to a packed final month of formal legislative sessions before the July 31 deadline. Pending items include an energy affordability bill, Healey’s economic development bond package, campaign finance transparency reforms, and primary care access legislation.
Published July 14, 2026
