Massachusetts Legislature Approves $1.35 Billion Package to Shore Up Public Education and Transportation, Lower Housing Costs

Fair Share Funding Funds Broad Relief for Families, Communities, and Local Government

(BOSTON—6/4/2026) Massachusetts lawmakers today passed a $1.35 billion spending package that seeks to ease pressures caused by strained school budget and delivers a massive infusion of cash into the state's public transportation system.

The investments in H.5740 are expansive and include cutting taxes to jumpstart housing construction, training the next generation of doctors and teachers, helping cities and towns dig out from an extreme winter, taking steps to shield the state's finances from the ripple effects of federal tax and tariff policy, and protecting immigrants from federal deportation actions.

“This legislation reflects exactly the responsible, forward-looking governance that Massachusetts families deserve. It makes significant investments in our schools and transit, paired with fiscally prudent steps to protect our state finances during a period of uncertainty,” said Senate President Karen E. Spilka (D-Ashland). “From making childcare more affordable to keeping the T running to helping immigrants access legal protections, this package addresses the needs of residents across the Commonwealth. I thank Chair Rodrigues and my Senate colleagues for their diligent work, and I’m grateful to Speaker Mariano and our partners in the House for their collaboration in getting this critical legislation to the Governor’s desk.”

“From significant investments in public transportation and public education, to support for DTA caseworkers and expenses related to the World Cup, to fiscally prudent tax conformity measures – this legislation is representative of the responsible approach that Massachusetts must continue to take during this period of significant fiscal uncertainty, while still ensuring robust state support for vital projects,” said House Speaker Ronald J. Mariano (D-Quincy). “I want to thank Chairman Michlewitz and my colleagues in the House for working to make these investments a reality, as well as our partners in the Senate for ensuring that they reach the Governor’s desk for her signature.”

“Reflecting the priorities of my Senate colleagues, this package makes meaningful investments in education and transportation that touch all corners of the Commonwealth. The bill prioritizes municipal winter relief and targeted tax incentives to jumpstart housing production,” said Senator Michael J. Rodrigues, Chair of the Senate Committee on Ways and Means. “With its passage, we are bolstering our public transportation system, supporting statewide education initiatives, training the next generation of doctors and teachers, and taking proactive steps to responsibly mitigate the fallout from federal tax changes. Thank you to the Senate President, our partners in the House including my good friend Chair Michlewitz, and our Senate conferees for their thoughtful input and support.”

“The use of these one-time surplus funds provides us with a unique opportunity to better strength the Commonwealth in numerous ways. By further improving our educational and transportation sectors we will build off the work we have done in the last several budget cycles with a judicious use of the Fair Share funds. The tax changes contained in this bill will help support the state’s economic competitiveness, while giving us time to absorb the expected loss in revenue,” said Representative Aaron Michlewitz, Chair of the House Committee on Ways & Means (D-Boston). “I want to thank Speaker Mariano and all our House colleagues for their input and support on this critical funding legislation.”

Investing in Schools and Students

The legislation puts $558 million in Fair Share funds toward education, delivering relief to families, students, and school districts across the state. School districts struggling to cover the costs of serving students with disabilities will see immediate help, with $152 million directed toward special education reimbursements, while $150 million goes toward making childcare more affordable and accessible across the Commonwealth.

On literacy, the bill invests $40 million to help the youngest learners read, including $20 million for high-dosage tutoring and $20 million for classroom programs specifically designed to accelerate reading skills for kids in kindergarten through third grade. Research consistently shows that children who are not reading proficiently by third grade face steeper challenges throughout their education, making this one of the most consequential investments in the package.

Fixing Roads, Rails, and Transit

The legislation directs $794 million in Fair Share funds toward transportation. A $595 million investment in the MBTA includes $450 million to keep the T running, $60 million for maintenance and upgrades physical infrastructure with an emphasis on  commuter rail improvements, $50.4 million to improve workforce and safety, $20 million to make fares more affordable for low-income riders, and $15 million for water transportation infrastructure across the state.

For communities across the state, the bill delivers $100 million to help cities and towns recover from an exceptionally costly winter—$80 million distributed based on how many roads a community maintains, and $20 million specifically for communities hit hardest by this year's historic storms.

Regional public bus systems across the state also receive $25 million to recruit and retain workers, plus $10 million for equipment and facility upgrades. An additional $3.75 million goes toward maintaining unpaved roads in rural areas.

Making It Cheaper to Build Housing

To address one of the biggest barriers to building new homes in Massachusetts, the bill creates a new tax exemption on building materials used in the construction of affordable, moderate-income, and middle-income housing projects, saving developers money and making it more financially viable to build the homes that families across the state desperately need.

The exemption is capped at $35 million per year and is specifically designed to help offset rising costs driven by tariffs imposed by the Trump Administration.

Responding to Federal Policy Changes

The bill also takes steps to protect Massachusetts taxpayers and businesses from the financial fallout caused by the Trump Administration and Congressional Republican policies. The Legislature is carefully phasing in changes to state tax law to align with the federal One Big Beautiful Bill Act, doing so gradually to avoid a sudden hit to state revenues. The bill includes provisions that would pause these tax changes if the proposed ballot question to lower the state’s income tax from 5 percent to 4 percent were to pass in November, which would help mitigate the expected loss in revenue that the ballot question would inflict.

The bill also creates a new tax credit for airlines that use sustainable aviation fuel, helping Massachusetts work toward its goal of achieving net zero carbon emissions by 2050, and offers a tax credit of up to $5,000 for farmers who donate surplus food to local food banks.

Training the Next Generation of Doctors and Teachers

To address a growing shortage of primary care physicians, the bill sets aside $10 million in scholarships for UMass Chan Medical School students who agree to pursue family medicine and practice in underserved communities in Massachusetts after they graduate.

To encourage young educators to start their career in Massachusetts, the bill creates the Tomorrow's Teachers program, investing $10 million in scholarships and loan forgiveness to college students and high school graduates who commit to teaching in Massachusetts public schools.

Helping Immigrants Stay Safe

With the Trump Administration ramping up immigration enforcement, the legislation directs $1 million toward free legal services for immigrants and refugees who need help navigating the courts. This builds on a $5 million investment the Legislature already made to launch the Massachusetts Access to Counsel Initiative, which has helped hundreds of residents access legal representation.

Keeping Phones Out of Classrooms

The bill sets aside $1 million to help public school districts implement bell-to-bell cell phone-free policies that so that students can learn without distractions.

The full text of the legislation is available online, along with a fact sheet summarizing highlights of the legislation.

The Legislature enacted the bill and sent it to the Governor for her signature.

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