Governor Healey and Lieutenant Governor Driscoll Sign $57.78 Billion Fiscal Year 2025 Budget

Governor Healey and Lieutenant Governor Driscoll Sign $57.78 Billion Fiscal Year 2025 Budget:

 

Sustainable, Balanced Spending Plan Delivers Transformative Education, Infrastructure, Transportation Initiatives

 

Boston, MA -- Today, Governor Maura Healey signed the Fiscal Year 2025 (FY25) state budget, a $57.78 billion plan that builds on the many strengths of the Massachusetts economy and addresses some of the state’s biggest challenges. The budget is balanced, responsibly controls spending growth and protects taxpayer dollars.   

 

The budget includes transformative investments to strengthen Massachusetts’ national leadership in education. It includes funding for Governor Healey’s Literacy Launch Initiative, a nation-leading strategy to expand access to evidence-based reading instruction for Massachusetts students. It continues to support $475 million in Commonwealth Cares for Children (C3) grants for early education and care providers and makes this program permanent. Massachusetts is the only state in the nation to continue funding this vital program at the same level that the federal government did. The budget also makes community college free for all students through the MassEducate program. This builds on the success of MassReconnect, Governor Healey’s initiative to make community college free for students aged 25 and older, which drove a 45 percent increase in enrollment for this age group last year. The budget also fully funds the Student Opportunity Act.

 

Additionally, for the second year in a row, the Healey-Driscoll Administration is dedicating 1 percent of the overall budget to energy and the environment. This investment further positions Massachusetts to be a global leader in the burgeoning clean energy economy and strengthens the state’s climate resilience, mitigation and adaptation efforts, including boosted funding for dams, culverts, and small bridges. The budget also creates a new Disaster Relief and Resilience Fund to improve the state’s ability to respond to natural disasters, such as the catastrophic flooding that impacted municipalities, farms and businesses last year.

 

The FY25 budget also seeks to address some of the greatest challenges holding Massachusetts residents back, particularly through improvements to transportation and infrastructure. It directs the highest levels of funding in 20 years to the MBTA, including doubling operational support, creating a first-of-its-kind Low-Income Fares Program, and authorizing $250 million for the Commonwealth Transportation Fund (CTF) to unlock an estimated $1.1 billion for transportation capital projects, including for the MBTA’s Track Improvement Program. It also supports year-round, fare free service at the state’s Regional Transit Authorities. 

 

“Massachusetts is the leader in innovation and education, the best place to raise your family or grow a business. But we also face challenges, so we aren’t resting – we’re going on offense,” said Governor Healey. “This budget delivers on our shared priorities and drives our state forward with urgency and purpose. It invests in areas that we are already leading on and makes them better – including our #1 ranked schools and our nation-leading child care strategy. We’re also tackling our biggest challenges by lowering household costs and improving transportation. We’re doing all of this responsibly, staying within our means and in line with the rate of inflation. I’m grateful to Senate President Spilka, Speaker Mariano, Chairs Michlewitz and Rodrigues, and all of our partners in the Legislature for their hard work on this transformative budget.”

 

“The investments in this budget will make it easier for people to afford to live and work here in Massachusetts, while also making us more a competitive place for employers to stay and grow here,” said Lieutenant Governor Kim Driscoll. “I’m also proud that this budget continues our strong support for municipalities, from local aid to fully funding the Student Opportunity Act.”

 

By fully accounting for another year of the historic tax cuts enacted by the Governor and Legislature last year, the FY25 budget extends Massachusetts’s competitive advantage and supports seniors, families, renters, and others across the state struggling with high costs.

 

The FY25 budget outlines $1.3 billion in strategic investments to improve transportation and education using the voter-approved Fair Share surtax. These include MassEducate, Literacy Launch, and funding for the MBTA and Regional Transit Authorities.

 

The FY25 budget supports the cities and towns that make Massachusetts a great place to live, raise a family, and run a business by growing unrestricted general government aid by 3 percent for the second year in a row. 

 

“We are proud to have worked with Chairs Michlewitz and Rodrigues to deliver a balanced FY25 budget that controls spending and delivers crucial services,” said Secretary of Administration and Finance Matthew J. Gorzkowicz. “Collectively with our legislative partners, we understand the financial headwinds we are facing, and we are laying the building blocks now to ultimately make sure we can effectively manage spending and deliver the programs and services our residents expect within available resources.” 

 

“With historic investments in free community college, early education and care, and regional equity, Massachusetts has the tools it needs to provide hope and opportunity to each of our residents,” said Senate President Karen E. Spilka (D-Ashland). “This budget is a vote of confidence in every Massachusetts resident going to school, raising a family, and working to make ends meet—as well as a blueprint for bringing equity and opportunity to every region and resident of our state. I’m grateful to Governor Healey for her signature, Chair Rodrigues, my Senate colleagues, Speaker Mariano, and our partners in the House.”

 

“This budget takes a fiscally responsible approach to making meaningful investments in areas of significant need. I’m proud of the fact that the FY25 budget allocates key funding to better support Massachusetts students and families, to increase access to affordable health care, and to provide for a safer and more reliable public transportation system,” said House Speaker Ronald J. Mariano (D-Quincy). “I want to thank Governor Healey, Chairman Aaron Michlewitz and my colleagues in the House, along with our partners in the Senate, for their hard work and critical input throughout this process, a collective effort that has helped to produce a strong and responsible FY25 budget.”

 

“The Fiscal Year 2025 budget the Governor signed today makes transformative investments in education, regional equity, and builds upon the Commonwealth’s workforce economy. These historic measures enable residents to remain in the state, solidifying our economic future for generations to come,” said Senator Michael J. Rodrigues (D-Westport), Chair of the Senate Committee on Ways and Means. “The FY 25 budget is also a balanced and responsible plan, centered on sustainability and regional equity by maximizing revenues and building upon the progress we’ve already made in key sectors of the state economy. With a transparent and inclusive amendment process, we were able to improve our original budget and make even further strides in our education, economic development, environmental, and health & human services priorities. I would like to thank House Ways and Means Chair Aaron Michlewitz and Secretary of Administration and Finance Matthew Gorzkowicz for their collaborative efforts in helping to develop and shape this comprehensive budget plan.”

 

“The Fiscal Year 2025 that is signed today is truly a reflection of the best and most critical initiatives that were contained in the various budget proposals that have been presented this year. Whether it is greater investments into programs like housing stability, food security, or early education the initiatives contained in this budget are a reflection of our shared values,” said Representative Aaron Michlewitz, Chair of the House Committee on Ways & Means (D-Boston). “By reinvesting in the people of the Commonwealth we will continue to assist those in need while making our economy more competitive and equitable for years to come.”

 

Governor Healey is also proud to sign 258 of the 261 FY25 budget outside sections. Included in those sections is the Disaster Relief and Resiliency Fund and a provision to allow individuals to amend their marriage licenses and birth certificates to accurately reflect their gender identity. 

 

The administration also authorized the closure and redevelopment of the MCI-Concord prison, saving the state $16 million and unlocking the property for housing and other new uses that will benefit Concord and the nearby region. Additional outside sections require insurance carriers to cover fertility preservation services for individuals with conditions that impair fertility; modernize the examination process for uniformed members of the State Police; and legalize online Lottery games. 

 

While the Massachusetts economy remains strong, the administration recognizes the ongoing need for fiscal responsibility and active risk management in FY25. The administration is therefore vetoing approximately $317 million in gross spending to help ensure that FY25 ends with a balanced budget. 

 

The Governor’s signing letter, veto message and returns will be available here soon.

 

FY25 Budget Highlights:

 

Fair Share:

* $761.5 million for education

 

   * $239 million total for higher education, including $93.5 million for Mass Educate to build upon the success of Mass Reconnect and make community free for all, and $80 million for MassGrant Plus scholarships  

 

   * $244 million for K-12 education, including $170 million to guarantee access to free school meals for students across the Commonwealth and $20 million for Literacy Launch 

 

   * $278 million for early education and care, including $65 million for provider rates and $175 million to help support C3 grants 

 

* $538.5 million for transportation 

 

   * $250 million transfer to Commonwealth Transportation Fund to leverage over $1 billion in borrowing for transformative infrastructure investment 

 

   * $20 million for Fare Equity at the MBTA 

 

   * $110 million for regional transit grants and free fares  

 

   * $45 million in supplemental Chapter 90 funding for municipal roads and bridges 

 

   * $10 million for MBTA Hiring Academy and recruitment initiatives

 

Education and Local Aid:

* Fully funds the Student Opportunity Act with $6.86 billion for Chapter 70 funding, a 4 percent increase over FY24

 

* A $104 increase in per pupil minimum aid

 

* Provides $475 million in C3 grants to early education and care providers

 

* $15 million for early educator scholarships and loan forgiveness 

 

* $85 million for child care provider rates, $20 million over FY24 for new rate increases to continue better covering the true cost of care 

 

* A 3 percent increase to Unrestricted General Government Aid (UGGA)

 

* $39 million for local and regional library aid

 

Housing and Homelessness:

* $326 million in Emergency Assistance to contribute to the state’s ongoing shelter response  

 

* $219.2 million for the Massachusetts Rental Voucher program for low-income tenants  

 

* $57.3 million for HomeBASE to connect EA-eligible families with more permanent housing opportunities

 

Economic Development:

* $7.5 million for the Community Empowerment and Reinvestment Grant Program 

 

* $7.6 million for the Small Business Technical Assistance program  

 

* $3.7 million for the Massachusetts Office of Travel and Tourism  

 

* $600,000 for the Massachusetts Downtown Initiative for municipalities looking to revitalize their downtowns  

 

Health and Human Services:

* Fully funds the Chapter 257 rate reserve for human service providers at $390 million 

 

* Expands Transitional Aid to Families with Dependent Children and Emergency Aid to the Elderly Disabled and Children through a 10 percent benefit increase to $496 million and $183 million, respectively 

 

* $124.1 million for the Department of Developmental Services Turning 22 Program

 

* $40.0 million to increase base rates for nursing facility providers

 

* $14.7 million for maternal health services, including a new $1.0 million investment for a doula certification program at the Department of Public Health

 

* $5.5 million for Children’s Advocacy Centers, a $550 thousand increase over FY24

 

* $2.0 million to fully support the Massachusetts Youth Diversion Program at the Department of Youth Services

 

Energy and the Environment:

* Funds the Executive Office of Energy and Environmental Affairs at $555 million, which hits the administration’s target of 1 percent of total budget and includes: 

 

   * $10 million for Food Security Infrastructure Grants  

 

   * $20 million for the Massachusetts Clean Energy Center to support wind technology, decarbonized homes, and workforce training programs in the clean energy industry 

 

   * $8.7 million for environmental justice  

 

   * $42.3 million for emergency food assistance 

 

   * $14 million in consolidate net surplus to support new Disaster Relief and Resiliency Fund

 

   * $1 million total for Dam Safety Technical Assistance to assist communities in addressing vulnerable dams

 

   * $2.8 million to fund critical work on small bridges and culverts 

 

Workforce Development:

* Provides $15.9 million for Summer Jobs Program for At-Risk Youth (Youthworks) to subsidize wages and facilitate career development for at-risk youth 

 

* Provides $9.6 million for Career Technical Institutes

 

* Includes $3.3 million for the Registered Apprenticeship Program 

 

* $8.9 million for MassHire Career Centers to provide regional workforce training and employee placement services across 29 locations  

 

Serving Our Veterans:

* Funds the Veterans’ Services at $193.5 million, an 11 percent increase from FY24 GAA  

 

* Provides historic levels of support for the Chelsea and Holyoke Soldiers’ Homes with a combined $87.4 million  

 

Criminal Justice and Public Safety:

* Savings of $16 million through the closure of MCI Concord

 

* $5.3 million for Non-profit Security Grants

 

* $13.3 million for gang prevention grants  

 

Technology and Cybersecurity:

* Codifies the Digital Accessibility and Equity Governance Board, and the position of Chief IT Accessibility Officer (CIAO) 

 

* $4.2 million for technology modernization and hardware maintenance contracts 

 

* $700,000 for advanced threat protection software and other upgrades