MassDOT to invest $8 billion during next decade in state’s transportation system

Massachusetts Gov. Maura Healey has revealed the Massachusetts Department of Transportation (MassDOT) will provide $8 billion in funding during the next decade for the state’s roads, bridges and regional transportation system and immediately stabilize the finances of the Massachusetts Bay Transportation Authority (MBTA). MassDOT notes the funding represents the largest state transportation investment in more than 20 years by maximizing fair share revenue and other existing resources. 

The plan will be filed as legislation in the coming weeks as part of the governor’s fiscal year 2026 (FY26) budget proposal and an accompanying supplemental budget. According to MassDOT, the plan puts into action many of the recommendations made by the Transportation Funding Task Force, which delivered its final report to the governor outlining multiple steps for stabilizing and enhancing transportation while setting the stage for ongoing discussion about how best to finance transformative investments in transportation into the future.   

“This historic transportation proposal represents smart, forward-thinking fiscal management, and it will have an impact on people in all regions of our state,” Gov. Healey said. “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. 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. I’m grateful for the insights of the Transportation Funding Task Force, which shaped this proposal, and for the strong leadership of [MassDOT] Secretary [Monica] Tibbits-Nutt and [Matthew] Gorzkowicz.” 

“This plan will not only stabilize the finances of the MBTA but also dedicate new and critical resources to our regional transit authorities and municipalities, accelerate our efforts to repair crumbling bridges, fix our culverts and advance important projects throughout the state,” said Massachusetts Lt. Gov. Kim Driscoll. “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.” 

The proposal would: 

• Immediately direct $857 million in surplus fair share revenue from FY24 to public transportation. 
• Dedicate $765 million in fair share resources from FY26 to the Commonwealth Transportation Fund, building on an innovative strategy developed by the Healey-Driscoll Administration to maximize fair share through borrowing to yield $5 billion over the next 10 years for capital investment bonds in rail, roads, bridges, regional transit authorities and culverts.  
• More than double support for the MBTA’s operating budget to $687 million in FY26 and immediately address the agency’s budget shortfall, putting the MBTA on a path of long-term stability. The increase comes after the governor doubled the operating budget to $314 million in FY25. 

As part of the capital expansion, MassDOT notes Healey intends to file a multi-year Chapter 90 bill later this month that will grow the size of the funding pool directed to cities and towns to $300 million per year for five years, the highest amount in the history of funding for local roads and sidewalks. According to MassDOT, the additional $100 million annual investment represents a 50 percent increase to support the repair of municipal roads, bridges and infrastructure.   

MassDOT says 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 50-50 split between fair share resources dedicated to transportation and education since enacted of the voter-approved surtax, which was one of the key recommendations included in the Transportation Funding Task Force report. 

Among the improvements that this funding will allow include: 

• $1.4 billion in investments at the MBTA for new commuter rail coaches, Red and Orange Line cars, station accessibility and resilience, track improvements and power system resiliency.  
• $2.5 billion for road and bridge repairs across the state through MassDOT, with money set aside for culverts, small bridge repairs and safety and congestion hot spots.  
• Allow for projects advancing West-East Rail to continue to move forward, including capacity improvements near Pittsfield, trackwork and accessibility improvements in Springfield and station planning in Palmer.  

“Gov. Healey and Lt. Gov. Driscoll have stressed that transportation systems must work if we want our communities to thrive, and the announcements today further the state's vision to improve infrastructure by recommending significant financing initiatives for the short and long-term,” Tibbits-Nutt said. “With the governor's plan, we are taking very actionable steps to increase the use of fair share revenue, offer municipalities more money through the Chapter 90 program, double support for the MBTA's operating budget and expand microtransit services.”  

“This plan builds upon the success we have already achieved by leveraging fair share dollars through the Commonwealth Transportation Fund to invest in FY25 in critical infrastructure and puts the work of the Transportation Funding Task Force into immediate action. By borrowing against fair share revenue, we have devised an innovative strategy that will allow us to not only continue to invest in key projects and infrastructure, but also solve the MBTA’s funding crisis, not just for this year, but years into the future,” said MassDOT Secretary of Administration and Finance Gorzkowicz. “I’m grateful to Gov. Healey, Lt. Gov. Driscoll and members of the task force for their support and guidance as we crafted this proposal that will make historic investments in the foundation of our transportation infrastructure.”  

MassDOT notes that after covering $100 million in debt service on new borrowing, the FY26 budget will propose to invest: 

• $687 million to stabilize MBTA operations, including $500 million from fair share to fund programs such as the MBTA Workforce Academy, low-income fares and water transportation programs.  
• $110 million for regional transit authorities, including $66 million for formula-based transit improvements, $30 million for fare free service and $10 million to facilitate interconnectivity between the authorities. 
• $55 million for MassDOT operations, including workforce investments and enhanced capital project delivery.  

According to MassDOT, the surplus fair share supplemental budget to be filed by Gov. Healey will propose to invest $857 million of the $1.3 billion surplus available for spending in transportation, including: 

• $400 million to address workforce and safety initiatives identified as necessary by the Federal Transit Authority. 
• $300 million to replenish MBTA reserves. 
• $25 million for a Winter Resilience Assistance Program for municipalities. 
• $25 million for regional transit authority workforce recruitment and retention. 
• $10 million for microtransit. 

MassDOT notes the multi-pronged financing plan leans on fair share, which has performed exceedingly well as a revenue source for Massachusetts. In FY24, the state collected $2.46 billion from the surtax, nearly $1.5 billion above what had been budgeted. 

According to MassDOT, the financing plan also calls for using $170 million available from the administration’s pool of federal matching funds to retire the MBTA’s legacy debt ($89 million), freeing up operating capacity at the agency. MassDOT notes the matching funds will also continue to support the administration’s strategy of aggressively pursuing federal funding, with matching dollars committed to the Green Line Central Tunnel project, as well as local technical assistance and local project matches.  

“On behalf of the MBTA, I thank the Healey-Driscoll Administration for their visionary leadership and commitment to strengthening public transportation across Boston and the entire commonwealth,” said MBTA General Manager and CEO Phillip Eng. “This solution-oriented approach is leading to a historic investment and will provide critical support to the MBTA, including our operating capacity, improving service and ensuring a more sustainable, reliable transit system for all riders. As we move forward, I am committed to ensuring that we remain focused on the needs and expectations of the public we serve. We're going to make the best use of the public's dollars by building a more efficient and capable workforce and delivering meaningful projects and services that improve the transit experience for everyone.” 

The Transportation Funding Task Force, which was created by Gov. Healey through executive order last January, spent the past year reviewing current and projected revenue sources, comparing those sources to benchmarks and trends in peer and neighboring states and exploring innovative financing approaches and alternative pricing mechanisms. 

MassDOT notes the task force developed a framework focused first on stabilizing the transportation system’s finances and addressing critical infrastructure repair needs. Additional recommendations looked at how to enhance and transform the system. 

Some of the recommendations included: 

• Allocating half of fair share revenues to transportation over time. 
• Expanding capital capacity for transportation by dedicating a significant portion of fair share revenue to the CTF. 
• Using fair share to stabilize public transportation agency operations. 
• Maintaining predictable and stable funding for investments in regional transit authorities and microtransit providers. 
• Increasing investment in the Chapter 90 local roads programs by at least 50 percent to improve local transportation infrastructure condition.