State Representative Lipper-Garabedian Joins the Massachusetts Legislature to Pass FY26 Budget to Safeguard Financial Health and Protect the State’s Most Vulnerable

Written By Kate Lipper-Garabedian

Legislature upholds ongoing fiscal responsibility, protects core services, and reinforces the state’s economic foundation in the face of federal uncertainty

 

(BOSTON—7/1/2025) On Monday, June 30, State Representative Kate Lipper-Garabedian (D-Melrose) joined the Massachusetts Legislature to enact a $61.01 billion state budget for Fiscal Year 2026, a fiscally responsible plan that protects core services for the state’s most vulnerable residents, maintains critical investments, and positions the Commonwealth to confront the underlying budget challenges that are a result of federal funding uncertainty.

 

Approved on a bipartisan basis in both chambers, the budget neither raises taxes on residents and businesses nor spends dollars from the state’s stabilization fund—also known as the ‘Rainy Day Fund’—which currently stands at a historic $8.1 billion.

 

"The FY26 budget is a powerful statement of our values as a Commonwealth at a time of unparalleled and astonishing federal executive branch actions that undermine our civil rights, civil liberties, and safety," said Representative Lipper-Garabedian. "In Massachusetts, we recognize the value of supporting public education, investing in a more reliable public transportation system, protecting the right to safe health care, and aiding local non-profits that do critical work in our communities." 

 

In addition to statewide investments, Representative Lipper-Garabedian secured the following earmarks for the 32 Middlesex District, as well as critical Chapter 70 funding and local aid:

 

City of Melrose:

·       $100K for capital improvements to Melrose public schools

·       $75K for Melrose Playing Fields

·       $50K for a Police Cruiser 

·       $25K for Melrose Police Equipment

·       $13,285,756 in Chapter 70 school funding

·       $6.384 million in Local Aid

 

Town of Wakefield:

·       $75K for HVAC heating and colling renovations to the top floors of the Senior Center

·       $50K for Mapleway Field and Playground improvements

·       $25K for a pollinator garden 

·       $20K for ADA accessibility upgrades at the Albion Cultural Exchange 

·       $9,402,623 in Chapter 70 school funding

·       $4.193 million in Local Aid

 

City of Malden:

·       $300K for Triangle, Inc.

·       $150K for Housing Families

·       $150K for Portal to Hope

·       $100K for Linden Park improvements

·       $100K to Leadership Next Gen Fellowship Program

·       $75K for Mobile Homeless Outreach Team to ABCD

·       $75K for installation of public art

·       $50K for Town Line and Linden Brook Culverts

·       $50K for Malden Police Dept. crisis response

·       $69,770,045 in Chapter 70 school funding

·       $15.618 million in Local Aid

 

"At the local level, I am proud to have secured $1.37 million in earmarks for the 32nd Middlesex District alongside the Melrose, Wakefield, and Malden delegations. These earmarks will provide critical funding to enhance life for all residents. I am grateful to Speaker Mariano and Chair Michlewitz for their leadership on this budget bill." 

 

The Legislature’s final budget increases spending by $3.3 billion over Fiscal Year 2025, with the much of the increase attributed to MassHealth. Aligned with estimated tax revenue growth, the spending plan is based on a consensus tax revenue estimate of $41.214 billion for the coming fiscal year, a 2.25 per cent increase over the current fiscal year’s benchmark. Based on strong Fair Share surtax revenue collections to date, the Legislature’s budget includes $2.4 billion in available Fair Share generated revenues to support education and transportation investments, an increase of $1.1 billion over the last fiscal year.

 

The Legislature’s budget invests an additional $33 million in the Commonwealth Stabilization Fund. With the addition, the Fund’s balance would reach a historic high of $8.26 billion by the end of FY26. Since 2017, when the Fund’s balance was $1.3 billion, the Legislature has grown the account by 523 per cent as of FY24. 

 

Fair Share Investments

The Legislature’s budget includes $2.4 billion in Fair Share surtax spending, which is dedicated to  investments in public education and state transportation infrastructure.

 

Notable Fair Share education investments include:

 

  • $360 million for the Commonwealth Cares for Children (C3) grant program, which is matched with $115 million in funds from the Early Education and Care Operational Grant Fund, for a total investment of $475 million. Despite the loss of federal funds after the COVID pandemic, the Commonwealth has maintained this vital early education program which has lowered costs for families and increased opportunities for teachers in the field.

  • $460 million for Student Opportunity Act (SOA) expansion to support the fifth-year implementation of the SOA and provide $150 in minimum per-pupil aid for school districts.

  • $120 million for MassEducate, the Commonwealth’s universal free community college program, including non-credit tuition funding for those seeking to become emergency medical technicians and paramedics.

  • $192 million to provide child care financial assistance to families in need, which is in addition to the $773.7 million funded through general revenue.

  • $85 million to maintain financial aid programs for in-state students attending state universities through MASSGrant Plus, which is in addition to the $175.8 million for scholarships funded through general revenue.

  • $83 million for child care supports to maintain current capacity and rates of the child care financial assistance program.

  • $50 million for school transportation reimbursement costs, which is in addition to $53.7 million funded through general revenue.

  • $14 million for the State University SUCCESS Program, providing wraparound supports to students at public state universities.

  • $15 million for early literacy initiatives and programs.

 

Notable Fair Share transportation investments include:

 

  • $470 million in direct investment to support Massachusetts Bay Transportation Authority (MBTA) operations, including key initiatives like low-income fare relief, water ferry service and the MBTA Academy. Combined with the $535 million in funding from the recently passed Fair Share supplemental budget, the Legislature provides $1 billion in new investments in FY26 for operational improvements and transportation infrastructure upgrades across the MBTA system.

  • $120 million to support Regional Transit Authorities (RTAs) across the state. Together with resources from the General Fund, the bill provides a record $214 million for RTAs. 

  • $71.8 million for debt service for expanded new bond capacity for the Commonwealth Transportation Fund (CTF) for essential transportation projects across the Commonwealth.

 

Education

The Legislature’s FY26 budget supports students of all ages by maintaining investments in public education at every level. The budget fully funds the fifth year of the Student Opportunity Act, provides a historic funding commitment to the Department of Early Education and Care (EEC), and stands with public and private institutions of higher education at a volatile time.

 

With a $1.7 billion total investment in early education and care, the Legislature is building on last year’s investments in early education, which supported the sector’s workforce, protected programming, and maintained access to affordable care for families facing economic pressures.

 

Notable education funding includes:

 

  • $475 million for the C3 operational grant program, supporting critical operational and workforce initiatives across the early education sector for the third year in a row. 

  • $517.6 million for income-eligible child care, including $100.4 million in Fair Share resources.

  • $448.2 million for Department of Children & Families (DCF) and Department of Transitional Assistance (DTA) related child care, providing critical services for families eligible for subsidized care, including $91.6 million in Fair Share resources.

  • $83 million for child care supports to maintain the current capacity and rates of the child care financial assistance program.

  • $45.4 million for EEC quality improvement initiatives.

  • $20.5 million for the Commonwealth Preschool Partnership Initiative to maintain access to universal pre-kindergarten and preschool opportunities in underserved areas.

  • $20 million for Childcare Resource and Referral Centers to support parents, child care providers, employers, and community groups in navigating the state’s early education and care landscape.

  • $20 million for grants to Head Start programs to promote school readiness for young children in low-income households.

  • $5 million for grants to early education and care providers for childhood mental health consultation services.

  • ·$1 million to continue a public-private pilot program with employers to create new child care seats.

 

To support schools across the state, the Legislature follows through on the commitment to fully fund and implement the Student Opportunity Act by Fiscal Year 2027 and invests $7.36 billion in Chapter 70 state aid to public schools, an increase of $460 million over FY25. Further, the budget increases minimum Chapter 70 aid to $150 per pupil.

 

Recognizing the continued fiscal challenges faced by cities, towns and school districts as we near full implementation of the SOA, the budget directs the Department of Elementary and Secondary Education (DESE) to study components of the state’s K-12 school funding formula related to local contribution requirements. DESE would be required to hold four public hearings in different regions of Massachusetts before reporting back to the Legislature by June 30, 2026.

 

For the second consecutive year, the Legislature fully funds, at $120 million in FY26, MassEducate, the Commonwealth’s universal free community college program that became law in last year’s budget. By again delivering free tuition and fees for residents, the FY26 proposal continues its support for this vital initiative that expands economic opportunity in a regionally equitable manner across the Commonwealth.

 

Other education investments include:

 

  • $484.9 million for the Special Education (SPED) Circuit Breaker, in addition to the $190 million included in the Fair Share supplemental budget recently signed into law. Together with Fair Share supplemental funding, the Legislature’s FY26 budget fulfills the promise of 75 per cent reimbursement for eligible tuition and transportation costs, recommending $674 million in total to reimburse school districts for the cost of educating students with disabilities.

  • $199 million for charter school reimbursements.

  • $260.8 million for scholarships to students, including $85 million in Fair Share resources to expand MASSGrant Plus financial aid support for students attending public institutions.

  • $103.7 million to reimburse school districts for regional school transportation costs, including $53.7 million in General Fund resources.

  • $30 million for higher education wraparound services, including $16 million in General Fund resources, to support services for students attending community colleges through MassEducate, and $14 million in Fair Share resources to support wraparound services for students attending state universities.

  • $12 million for rural school aid support.

  • $14.3 million for early college programs and $13.1 million for dual enrollment, along with $8 million for Reimagining High School to empower high school students to take college courses prior to graduation.

  • $5 million to support continued implementation of the Massachusetts Inclusive Concurrent Higher Education law, including $3 million for grants offered through the Massachusetts Inclusive Concurrent Enrollment initiative to help high school students with intellectual disabilities aged 18–22 access higher education opportunities; and $2 million for the Massachusetts Inclusive Concurrent Enrollment Trust Fund.

  • $3 million for the Genocide Education Trust Fund to continue the state’s commitment to educate middle and high school students on the history of genocide.

  • $2.5 million for the Civics Education Trust Fund to maintain and support a statewide civic infrastructure, provide professional development to teachers, and ensure that every student can access high quality civics education.

  • $1 million for Hate Crimes Prevention Grants to support education and prevention of hate crimes and incidences of bias in public schools. 

 

Community Support

Highlighting the Legislature’s longstanding commitment to sustainable partnerships between the state and local governments, the budget agreement provides significant resources to support all Massachusetts cities and towns, ensuring that the state can meet the needs of every region, city, and town—and leave no corner of the Commonwealth behind.

 

The proposal includes $1.323 billion in funding for Unrestricted General Government Aid (UGGA), the primary source of direct flexible state aid to Massachusetts towns and cities, an increase of $14.4 million over FY25. UGGA funding supports resources for municipalities as they collectively confront increased fiscal constraints at the local level.

 

In addition to traditional sources of local aid, the Legislature’s FY26 budget also increases payments in lieu of taxes (PILOT) for state-owned land to $54.5 million. PILOT funding provides a supplemental source of local aid for cities and towns working to protect and improve essential services and programs.

 

Other local investments include:

 

  • $209 million for regional public transportation systems, including $115 million from Fair Share funds to maintain and continue expansions to regional bus service, sustain systemwide fare free transit service, and support RTA commuter operations.

  • $115.6 million for local housing authorities.

  • $52.4 million for libraries, including $19 million for regional library local aid, $20 million for municipal libraries and $6.2 million for technology and automated resource networks.

  • $30.8 million in grants to Councils on Aging, increasing assistance per elder to $16 from $15 in FY25.

  • $27 million for the Massachusetts Cultural Council to support local arts, culture, and creative economic initiatives.

  • $5 million to implement an immigration legal services program distributed by the office for refugees and immigrants to designated non-profit organizations to increase access to legal representation, advice, and advocacy for immigrants and refugees who are facing enhanced legal threats from the federal government.

 

The FY26 budget codifies fare-free RTA service, which will require all RTAs to eliminate passenger fares for fixed routes and ADA-required paratransit service. With this measure, the Legislature continues to prioritize regional equity, support RTAs as an essential public service that connects communities, and provide a crucial connection for commuters, students, seniors, and people with disabilities.

 

Health, Mental Health, and Family Care

The Legislature’s FY26 budget funds MassHealth at $22.1 billion, an increase of over $2 billion over the last fiscal year. As the largest cost driver in the state’s budget, MassHealth alone accounts for 62 per cent of the total spending increase over the FY25 budget. Amid ongoing uncertainty in Washington, this budget maintains access to comprehensive health care coverage for over 2 million Massachusetts residents. MassHealth covers affordable, accessible, and comprehensive health care services for more than one in four residents, nearly half of all children, and seven out of every ten nursing facility residents.

 

Other health investments include:

 

  • $3.26 billion for a range of services and focused support for people with intellectual and developmental disabilities, including $2 billion for community residential services and $287 million for the Department of Developmental Services (DDS) Community Day and Work program.

  • $1.82 billion to support the Personal Care Attendant program and its historic collective bargaining agreement which raised the wage scale to $25 per hour.

  • $694 million for adult support services, including $19 million to support jail diversion initiatives to better serve individuals with mental illness and substance use disorders and connect them with appropriate treatment.

  • $650.1 million for nursing facility Medicaid rates, including $25 million in additional base rate payments to maintain competitive wages in the Commonwealth’s nursing facility workforce.

  • $381 million for Department of Mental Health (DMH) hospital and community-based services, including $4.8 million to fully fund the operation of the Pocasset Mental Health Center.

  • $237.7 million for Department of Public Health (DPH) hospital operations, including $31 million to fully fund and maintain operations of the Pappas Rehabilitation Hospital for Children through the duration of FY26.

  • $187.1 million for the Bureau of Substance Abuse Services (BSAS), including $500 thousand in new funding to develop the state’s recovery coach workforce, which will support key initiatives from last session’s Substance Use Disorder and Recovery Coach Licensure Act.

  • $132 million for children’s mental health services.

  • $102 million for nursing facility enhanced Medicaid rates to begin implementation of the 2024 Long-Term Care Act, including $25 million to support the nursing home workforce.

  • $73.1 million for domestic violence prevention services.

  • $39.3 million for Early Intervention (EI) services, maintaining necessary support and services for infants and young toddlers with developmental delays and disabilities.

  • $35 million for Family Resource Centers (FRCs) to maintain mental health resources available to families.

  • $26.5 million for family and adolescent health, including $11.2 million for comprehensive family planning services and $6.7 million to enhance federal Title X family planning funding.

  • $22.7 million for school-based health programming and services, including $3 million for school-based mental health services.

  • $14.3 million for suicide prevention and intervention, with an additional $1.8 million for Samaritans Inc. and $1.1 million for the Call2Talk suicide prevention hotline. This investment protects and fully funds 9-8-8, the 24/7 suicide and crisis lifeline.

  • $14.7 million for maternal and child health, including $10.8 million for pediatric palliative care services for terminally ill children and a policy adjustment to ensure that children up to age 22 can continue to be served through the program.

  • $12.75 million for Meals on Wheels and other nutrition programs for seniors.

  • $9.3 million for community health centers, including $1 million for gender affirming care services.

  • $5.5 million for children advocacy centers to maintain critical support available to children that have been neglected or sexually abused.

  • $2 million for grants for improvements in reproductive health access, infrastructure, and safety.

  • $1.25 million for the Young Mothers Experiencing Acute Trauma Pilot Program, a behavioral intervention program that works to stabilize and support young women, most of whom are mothers, who are traumatized survivors of abuse and neglect.

  • $150,000 for Reproductive Equity Now Foundation, Inc. to operate a free and confidential abortion legal hotline for Massachusetts-based health care providers and helpers, as well as patients obtaining care in-state.

 

The budget establishes a legislative commission to study the future of the Pappas Rehabilitation Hospital for Children, including a review of the hospital’s finances and programs.

 

To help residents manage high prescription drug costs, the budget also extends the right of consumers to use coupons to pay for prescription drugs. The provision is extended through 2031.

 

Additionally, it requires the Department of Public Health to form a strategic task force to prepare recommendations for the continuity of abortion and abortion-related care in the Commonwealth in the event of the federal government ending support for reproductive care. 

 

Expanding and Protecting Opportunities

The Legislature is committed to expanding opportunity and supporting the state’s most vulnerable residents. This budget therefore maintains the annual child’s clothing allowance, providing $500 per child for eligible families to buy clothes for the upcoming school year. The budget also fully annualizes the FY25 10 per cent increase to Transitional Aid to Families with Dependent Children (TAFDC) and Emergency Aid to the Elderly, Disabled and Children (EAEDC) benefit levels to help families move out of deep poverty. Additionally, the budget ensures that pregnant women can access TAFDC, regardless of where they are in their pregnancy.

 

The Legislature’s budget dedicates $86 million to support food security and child nutrition initiatives, including $50.5 million for Emergency Food Assistance to assist residents in navigating the historical levels of food insecurity, $20.1 million for the Healthy Incentives Program (HIP) to ensure access to healthy food options, and $15.5 million for the Women, Infants, and Children (WIC) Nutrition Program.

 

Economic opportunity investments include:

 

  • $5 million for the Secure Jobs Connect Program, providing job placement resources and assistance for homeless individuals.

  • $3.1 million for the Innovation Pathways program to continue to connect students to training and post-secondary opportunities with a focus on STEM fields.

  • $1 million for employment programs for young adults with disabilities.

 

Housing

As the state envisions a more fiscally sustainable path for its future, increasing affordable housing opportunities and addressing housing challenges remain at the forefront of the Legislature’s agenda. This budget therefore invests more than $1.15 billion in housing initiatives, dedicating resources for housing stability, residential assistance, emergency shelter services, and homelessness assistance programs. 

 

Housing investments include:

 

  • $253 million for the Massachusetts Rental Voucher Program (MRVP).

  • $207 million for Residential Assistance for Families in Transition (RAFT).

  • $115.6 million for local housing authorities.

  • $113.3 million for assistance for homeless individual shelters.

  • $57.3 million for the HomeBASE program to support sustainable exits from shelter.

  • $19.5 million for the Alternative Housing Voucher Program (AHVP), providing rental assistance to people with disabilities.

  • $18.2 million for homeless program administration to move people from the Emergency Assistance shelter system.

  • $16 million for the Executive Office of Housing and Livable Communities.

  • $10.6 million for assistance for unaccompanied homeless youth.

  • $10 million for sponsor-based supportive permanent housing to support 16 new housing units and case management services for vulnerable individuals.

  • $8.9 million for the Home and Healthy for Good re-housing and supportive services program, including funding to support homeless LGBTQ youth.

  • $6.5 million for resident service coordinators to help residents maintain stable tenancies at local housing authorities, which are required to provide households with the services they need.

  • $5.85 million for housing consumer education centers.

  • $2.5 million for access to counsel.

 

In addition to these investments in housing, the budget includes a provision requiring that residential rental broker’s fees must be paid by the contracting agent, often the landlord of an apartment, ensuring that renters are not burdened with unexpected and extraordinary costs.

 

The budget also kickstarts two studies on ways to bring down housing costs for Massachusetts residents and increase housing production. One study for a sales tax exemption for multifamily housing projects stalled by federal tariffs. Another that would incentivize new affordable housing developments when considering local tax levy requirements.  The budget further creates a commission to help begin to explore solutions to address the remediation of concrete housing foundations that have crumbled because of the presence of pyrrhotite.

 

Further, the budget includes a provision that will allow candidates for elected office in Massachusetts to use their campaign funds for adult care services being provided to that candidate’s parent or other adult dependent, that occur because of campaign activities. In the 2024 economic development bill, the Legislature approved the use of campaign funds for child care.

 

Both chambers of the Legislature having voted to enact the legislation, the budget will now be sent to the Governor for her signature.

 

###

 

Kate Lipper-Garabedian
Next

Representative Lipper-Garabedian Speaks at “No Kings Day” Rally in the City of Melrose