Demystifying the Massachusetts FY26 budget with MassTrac
The Massachusetts Fiscal Year 2026 (FY26) budget process is a complex, high-stakes undertaking that shapes the Commonwealth’s priorities for the year ahead. For lobbyists and advocates, navigating this process requires not only a deep understanding of the budget’s content but also real-time insights into amendments, funding allocations, and legislative timelines. Here’s how legislative intelligence software can provide a strategic edge in the FY26 budget cycle.
FY26 Budget Highlights
Total spending finalized at $60.9 billion signed by Governor Maura Healey (D) on July 4, 2025, $130 million short of the Legislature’s proposal.
No tax increases; no draw from the $8.1 billion “Rainy Day Fund.” Strengthened Rainy Day Fund to $8.26 billion with a $33 million deposit.
$22.1 billion for MassHealth, a $2 billion increase from FY25.
$7.36 billion for Chapter 70 aid to K–12 school districts, with the Department of Elementary and Secondary Education must conduct a study on the formula for Chapter 70 funding.
$1.32 billion in unrestricted local aid to cities and towns.
$1.59 billion for public higher education (UMass, state universities, community colleges).
$2.25 billion to cover the Commonwealth’s debt service.
$2.4 billion for state employee group insurance.
$470 million in operating transfers to the MBTA.
$572.9 million for MassDOT.
“Fair Share” Surtax Revenue: $2.2 Billion in Play
FY26 marks the third year of the 4% surtax on annual personal incomes over $1 million, generating a projected $2.4 billion in revenue. $1.5 billion is going to education and $711.9 million to transportation.
Notable surtax-funded investments include:
$550 million to the Commonwealth Transportation Fund
$470 million for the MBTA
$115 million to Regional Transit Authorities, including free fare
$266 million for higher education, including the MassEducate free community college initiative
$180 million to free school meals for K-12 students
$469.2 million for early education
Want to know exactly how those funds are distributed? Check out our line-item comparison tool for the full breakdown.
Key Policy Riders in the Outside Sections
Broker’s fees: Must now be paid by the party that hires the broker—typically, this shifts the cost from tenants to landlords in rental transactions.
Housing transparency: Requires the Executive Office of Housing and Livable Communities to maintain a Housing Production Dashboard for public-funded projects.
Small Business Ombudsperson: New office created to improve accessibility and support for Massachusetts small businesses.
Pappas & Pocasset: A special commission will study the future of Pappas Rehabilitation Hospital, which had been under scrutiny for potential closure by the Healey administration. Pappas will receive $31 million for operating costs and Pocasset, another pediatric mental facility will receive $4.8 million.
What Didn’t Make It
Several high-profile policy proposals floated by the House or Senate didn’t survive the final budget negotiations. Among those left on the cutting room floor:
Senate’s liquor license reform, giving municipalities more control.
Senate’s prescription drug payment limits.
House’s lottery system for vocational education admissions.
$27 million for the state’s Group Insurance Commission
How MassTrac Does the Budget Right
1. Real-Time Tracking
Instantly monitor every change—amendments, committee reports, and floor votes—across both chambers. Receive alerts when your issues or line items are mentioned, ensuring you never miss a critical development.
2. Amendment text - including redrafts
Access the full text of all budget amendments, including original versions and any redrafts, to track changes and evaluate legislative intent.
3. Search within amendment text
Use keyword or phrase searches across amendment text to quickly locate relevant provisions, funding proposals, or policy language.
4. Amendment results
View the outcome of each amendment—adopted, rejected, withdrawn, or laid aside—along with associated vote totals or committee actions.
5. Roll call votes
See detailed roll call votes on budget amendments and key budget line items, including how individual legislators voted.
6. Amendment summaries
Read plain-language summaries of complex amendments to quickly understand their purpose, impact, and sponsor intent.
7. Vote descriptions
Access contextual explanations of votes, including what a "yea" or "nay" vote meant and any political or policy significance.
8. Comparisons of line items
Compare funding levels and language across different versions of the budget (e.g., Governor,House, Senate, Conference), highlighting changes by line item.
9. View if an amendment is an existing bill or prior amendment
Easily identify whether an amendment is repurposed from previously filed bills or earlier amendments, with links to the original sources.
10. Outside section summaries
Get summaries of policy measures proposed in the budget.
11. Notifications on relevant budget news and press releases
Receive timely alerts when new budget developments, press statements, or official announcements are released.
12. Searchable, clickable transcripts of budget debates
Explore full transcripts of floor debates and hearings with clickable timestamps and speaker identification, enabling easy review and citation.
13. Earmarks broken down by legislator
View a legislator-specific breakdown of earmarks, showing who sponsored what, for which district or project, and at what funding level. See the House and Senate reports.
Interested in learning more about tracking the budget like a pro? Sign up for a free trial of MassTrac!