Press Release  Governor Healey Files $2.45 Billion Supplemental Budget to Close Fiscal Year 2025

Boston — Today, Governor Maura Healey filed a supplemental budget bill to strengthen Massachusetts’ financial standing amid national economic uncertainty and end Fiscal Year 2025 (FY25) with a balanced budget. The legislation appropriates $2.45 billion in gross spending, at a net cost to the state of $947 million after revenue offsets, to address deficiencies and meet time-sensitive budget needs as Massachusetts closes the books on FY25. 

This bill invests in the state’s future by depositing $125 million into the Stabilization Fund and deploying excess FY25 Fair Share surtax to support implementation of the Student Opportunity Act. In addition, the bill creates a new Economic Resiliency and Federal Response Fund, seeded with FY25 excess capital gains revenues, to ensure that the state remains fiscally resilient against the negative impacts of federal budgetary and policy decisions.

“With this legislation, we are controlling spending and ensuring that our state budget remains responsible, while also strengthening our ability to weather economic unpredictability coming from Washington,” said Governor Maura Healey. “The funds in our supplemental budget bill will help Massachusetts improve our competitive edge in life sciences, support our world-class education system, and maintain safety in our communities. I appreciate the Legislature’s consideration of this bill and our ongoing partnership in making Massachusetts more affordable and growing our economy.” 

"Now more than ever, Massachusetts communities need to know that they can count on our administration to protect the state resources that fund our schools, our transportation networks, our hospitals and so much more,” said Lieutenant Governor Kim Driscoll. “This closeout budget bill makes sure that the state meets our financial commitments to our residents, cities and towns, while responsibly shoring up our savings accounts and building our reserves.” 

"Alongside the FY26 supplemental budget bill we filed in early July, this closeout puts Massachusetts in the strongest possible financial position to enter a new fiscal year at a time of high economic uncertainty,” said Administration and Finance Secretary Matthew J. Gorzkowicz. “By proposing a new, flexible funding source that draws on excess FY25 capital gains, and by investing in the state’s Rainy Day Fund, this legislation prepares Massachusetts to better manage potential volatility on the horizon. I want to thank our partners in the Legislature for their ongoing, shared commitment to supporting Massachusetts’s preparedness and fiscal stability.” 

This bill closes gaps in the FY25 budget for state services such as universal free school meals and care at public health hospitals. It also proposes a limited amount of new spending, including $20 million for the Massachusetts Life Sciences Center, $20 million to drive the state’s tourism economy during the 2026 World Cup, and $5 million in grants to reproductive health care providers to help ensure access to care, including for MassHealth members.

In FY25, Massachusetts collected $2.98 billion in revenues from the voter-approved Fair Share surtax, which exceeds our spending threshold by $1.7 billion. This bill proposes transferring $150 million in excess Fair Share to the Student Opportunity Act Investment Fund, supporting implementation of the SOA in Massachusetts communities to continue supporting students and educators. 

The administration is also proposing several outside sections in this legislation, including a provision that would return to the historical practice in place prior to enactment of the Work and Family Mobility Act (WFMA) of allowing the RMV to make public its driving records that detail history of motor vehicle violations, with new guardrails included to protect privacy and prohibit broad non-driver specific requests.

Governor Healey also filed language that aligns with recommendations made by the Special Commission on State Institutions, including a proposal to make state institutional records over 75 years of age public. The goal of these provisions is to make institutional records easier for loved ones and historians to access while respecting patient privacy concerns.     

Due to uncertainty surrounding federal permitting and tax credits, the bill also proposes more flexibility in the state’s timeline for offshore wind procurements in response to changing market conditions. The supplemental budget extends the deadline for the state to contract for 5,600 MW of offshore wind from 2027 to 2029. Additionally, the budget removes the requirement that a solicitation be conducted every 24 months.  

Another outside section in this bill will expand the state’s Department of Public Health authority to decouple immunization recommendations and requirements in Massachusetts from federal standards if necessary to preserve public health. Under this language, if the federal government fails to maintain a robust schedule of vaccine recommendations, DPH can set independent standards for Massachusetts.

The bill would also set Sept. 1, 2026 as the statewide primary election day, ensuring that the Secretary of State can meet all state and federal ballot deadlines.

The largest cost addressed in this supplemental budget is for services provided by MassHealth in FY25. This legislation provides $2.05 billion gross for MassHealth at a net cost to the state of $539.7 million after federal reimbursements. 

This closeout supplemental bill also appropriates:  

• $162.7 million for a reserve to cover costs accrued by Massachusetts Sheriffs
• $75 million for housing preservation and stabilization
• $60.7 million for snow and ice removal
• $18.5 million for public health hospital operations
• $12 million for Universal School Meals
• $7.2 million for Department of Correction (DOC) Facilities operations
• $6.8 million for the Clean Water Trust Fund
• $3.5 million for State Police operations
• $700,000 for the Suffolk County District Attorney
• $20 million for the Massachusetts Life Science Center
• $20 million to support costs associated with hosting the 2026 World Cup
• $6.8 million for the Clean Water Trust Fund
• $5 million for direct supports to reproductive health providers at risk of losing federal funding 

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