FY26 Budget Comparisons
The Massachusetts state budget process is an annual cycle that begins with the governor's budget proposal, usually submitted in late January. This proposal, referred to as "HB1" in the first year of a legislative session or "HB2" in the second, outlines the governor's fiscal priorities and recommended appropriations for all state agencies and programs. After submission, the budget is reviewed and revised by the House Ways and Means Committee, which releases its own version in April. House members can then propose amendments before the full House votes to pass its version. The process then moves to the Senate, where the Senate Ways and Means Committee conducts a similar review and amendment process, culminating in a Senate vote.
Once both chambers have passed their versions, a conference committee—typically composed of three members from each chamber—is appointed to reconcile the differences. This committee produces a final compromise budget, which both the House and Senate must approve. The finalized budget is then sent to the governor, who can approve it in full, veto it in part (line-item veto), or send sections back with proposed changes. The legislature can override vetoes with a two-thirds vote in both chambers. Ideally, the budget is signed into law by the beginning of the new fiscal year on July 1, though delays can lead to temporary budgets to keep the government running.
Total Spending Comparison:
Governor's Proposal: $62.83 billion
House Proposal: $62.33 billion
Senate Proposal: $61.51 billion
Major Spending Differences:
The three versions show the most significant differences in these areas: human services, early education, and the MBTA.
SB2525 Line-Item Comparison Highlights
The Governor’s Budget
The Healey-Driscoll administration proposed a $62.83 billion spending plan that reflects a bold vision for Massachusetts. It is a $4.3 billion (7.4%) increase over the FY 2025 General Appropriations Act. Key investments focus on healthcare, education, and transportation, driven by rising non-discretionary costs and strategic funding fueled by the millionaire’s income surtax.
To balance this spending plan amid limited revenue growth, the administration has identified $1.94 billion in new and ongoing revenue-generating initiatives, including twelve proposed tax policy changes, most notably adding a tax on candy and synthetic nicotine sales.
Key Highlights:
Charitable income tax deductions are capped at $5K for an individual and $10K for a family.
Closure of the Pappas Pediatric Rehabilitation Hospital in Canton and the Pocasset Mental Health Center in Bourne. This has been put on “pause” since February, though.
Broker's fees for transactions involving residential rental properties are to be paid by the individual originally contracting with the broker, typically the landlord.
Tax on the sale of candy and nicotine products, not found in the House or Senate versions.
Spends $1.95 billion of fair share revenue. $1.18 billion (61%) on education; $765 million (39%) on transportation.
$375 million for early education and care, $275 million of that appropriation for C3 Grants (Commonwealth Cares for Children). These grants are given to early child care providers to help cover operational expenses and promote the overall stabilization of the child care sector.
$7.3 billion is allotted for Chapter 70 aid to public schools. Within that allocation, $179 million will go to charter school tuition reimbursements. This funding is intended to meet the state’s statutory obligation to mitigate Chapter 70 losses to charter schools under the Student Opportunity Act.
$125 million is appropriated for the Governor’s higher education capital financing strategy.
Authorizes MassDOT to launch a speed camera enforcement program and permits municipalities to use cameras to enforce local speed limits.
The House Budget
The Massachusetts House submitted a $61.58 billion budget, with the addition of $81.9 million in amendment spending and 35 new outside sections. The House budget is $498 million less than the Governor’s proposed budget, but $3.8 billion higher than the FY 2025 budget.
The House tackled 1,650 amendments through a mix of seven consolidated amendment bundles and 23 roll call votes. After debating, 756 amendments—over 45%—had been adopted. Of those, 715 introduced new spending, while 41 focused on refining policy language or adjusting budget provisions. 708 of the adopted amendments were earmarks set aside to fund specific communities, programs, and projects statewide.
Key Highlights:
Representative Tom Stanley (D-Waltham) received the most earmark money, totalling $4.15 million, receiving 27% of the money he requested.
Instead of Pappas and Pocasset closing, the House proposes a new legislative commission to study its effectiveness and what the consequences of a closure would be.
A renter would not have to pay a broker’s fee unless they initiate contact with one through an advertisement.
Establishes a 15-member vocational school admissions task force to review admissions policies and standards of review.
Fair share revenue is spent the same as the Governor’s proposal: $1.18 billion (61%) on education; $765 million (39%) on transportation.
Omits the Governor’s proposed $125 million for higher education building improvements, which would have supported a $2.5 billion, ten-year capital plan.
The Senate Budget
The Massachusetts Senate finalized a budget amounting to $61.51 billion. Lawmakers added $81.1 million in new spending through amendments and introduced 66 outside sections.The chamber processed 1,058 amendments through a mix of individual votes and bundled actions. In total, 493 amendments were adopted, 371 were rejected, and 194 were withdrawn.
Key Highlights:
Senator Dylan Fernandes (D-Falmouth) received $37.24 million, the most of anyone in the legislature to receive in earmark money. Most money received is going to the Pappas Rehabilitation Center in his district.
The Senate would decrease the appropriation for Transitional Aid to Families with Dependent Children by $686,640, compared to the Governor and House budgets.
Amendment 770 returns liquor license control to municipalities, adding 10 sections to the Senate budget. It bars license transfers between establishments and lets cities and towns set their own license caps under certain conditions.
The Senate proposal matches Healey’s proposal on broker fees for residential renters - whoever hires the broker pays the fee.
Amendment 541 adds 13 sections allowing the Health Policy Commission to set price limits on some drugs and creates a trust fund and assistance program for patients with chronic conditions.
Includes a provision requiring the Executive Office of Housing and Livable Communities to maintain a public online dashboard detailing funding sources, unit counts, affordability levels, and tenure (rental vs. ownership) for all housing production and preservation projects.
Establishes a working group to propose regulatory and legislative fixes—and funding strategies—for a Crumbling Concrete Assistance Fund.
What’s Next?
With all three budget versions released, a six-member conference committee will now work to reconcile the differences, aligning priorities, closing funding gaps, and finalizing policy language. The aim is to pass a unified budget before the July 1 fiscal year deadline, though the legislature has been notoriously late on this deadline in recent history.
At Masstrac, we make it easy to follow every step of the process. Here are some resources to use while the budget goes to conference:
As final negotiations begin behind the scenes, Masstrac helps you stay ahead, without the information overload. Have questions or need help finding something? Reach out to us at info@instatrac.com.
Training Sessions: Don’t forget to join our twice-weekly training sessions to learn how to maximize MassTrac’s features. Sessions are held every Wednesday at 2 p.m. and Friday at 10 a.m.