MA: Healey seeks $8B for MBTA, transportation projects

Gov. Maura Healey is touting a $8 billion borrowing plan to close the MBTA’s budget gap and fix potholed roads and crumbling bridges across the state by tapping into the new millionaires’ tax.

The plan, which will require legislative approval, calls for spending $8 billion over the next 10 years by tapping into proceeds from the state’s Fair Share Amendment tax and borrowing to nearly double state funding for the public transit agency and fund dozens of transportation projects.

“We’re going to invest billions of dollars to deliver better roads, less traffic, safer bridges and a transit system that works in every region,” Healey said in a prepared statement. “We’ll close the MBTA’s budget gap, improving service and upgrading stations, and we’ll move forward on regional projects like West-East Rail. And we’ll do this all without raising taxes.”

Initially, Healey’s plan would direct $857 million in surplus revenue raised through the Fair Share Amendment in 2024 to public transportation. Other funding will come from borrowing and other revenue sources.

The spending includes $1.4 billion for new MBTA infrastructure such as new commuter rail coaches and subway cars, $2.5 billion put into road and bridge repairs across the state, closure of the funding gap for the Allston I-90 project, and support for projects advancing the West-East rail proposal, according to the administration.

Lt. Gov. Kim Driscoll said the plan also includes funding for regional transit authorities and local governments and will accelerate the state’s efforts to repair crumbling bridges, fix drainage culverts and other upgrades.

“Our administration knows the role a safe, reliable and efficient transportation system plays in the future of Massachusetts and this plan represents a gigantic step forward,” she said.

Healey also plans to file a Chapter 90 pothole bill, which her administration said would boost funding to municipalities for roads and sidewalks to $300 million a year for five years.

“The combined impact of the Governor’s House 1 budget proposal for FY26 and the supplemental budget to spend surplus Fair Share revenue from FY24 will achieve a 50 percent-50 percent split between Fair Share resources dedicated to transportation and education since enacted of the voter-approved surtax,” Healey’s office said.

Healey’s plan comes as the beleaguered MBTA, which operates the state’s commuter rail trains, buses and subway cars, grapples with massive deficits driven by a mountain of debt, some of which dates back to the Big Dig project.

T officials estimate the agency’s operating deficit for the next fiscal year is $182 million, which is projected to grow to $859 million by 2029.

Ridership is another concern, with the number of passengers still below pre-pandemic levels. Fare revenue covered 41% of the system’s annual operating expenses prior to the COVID-19 pandemic, but that has dropped to 19%, according to officials.

Meanwhile, the MBTA said it would need about $24.5 billion to bring the system into a state of “good repair” by replacing tracks, facilities, power equipment, trains and other infrastructure.

Healey, who took office two years ago, attributes the T’s deficit to a lack of investment in the system over decades, and says she wants to make “transformative investments” to improve service and reliability. Her borrowing plan would pay down an estimated $89 million of the T’s legacy debt, according to the administration.

Jeff Mahoney, executive director of the Construction Industries of Massachusetts, was among those who welcomed the plan. He said it “demonstrates that policy leaders recognize the importance and permanence of capital infrastructure investments across the state.”

“Stabilizing and enhancing roads, bridges, and rail systems statewide will require continued vigilance, and we look forward to working with stakeholders to make sure we ‘kick the can’ no further,” he said.

But the conservative Massachusetts Fiscal Alliance condemned the proposal, saying it relies heavily on borrowing and surtax revenues “to address the MBTA’s chronic mismanagement while burdening taxpayers with increased financial liabilities.”

“This proposal is a textbook example of fiscal irresponsibility,” MassFiscal spokesman Paul Craney said. “Rather than tackling the deep-rooted inefficiencies and mismanagement plaguing the MBTA, Governor Healey is opting to throw more taxpayer dollars at the problem, all while leveraging Massachusetts’ financial future with unsustainable borrowing.”

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