Massachusetts Earmarks $8B for Transportation

Massachusetts will invest $8 billion into roads, bridges and public transit over the next decade under the commonwealth’s fiscal year 2026 budget, signed by Gov. Maura Healey on July 4.

The budget commits $1.25 billion for transportation in FY2026 alone — including $470 million for the Massachusetts Bay Transportation Authority (MBTA), $115 million in regional transit grants and $35 million to support reduced fares for income-eligible riders. The MBTA will also receive $548 million in revenue from the state’s Fair Share Amendment, which taxes incomes above $1 million.

Like many transit systems, the MBTA has struggled with lower ridership and fare revenue since the pandemic. With federal relief dollars drying up, the agency has faced tough choices to maintain bus and rail service. The MBTA projected a $700 million operating budget gap for FY2026 but recently narrowed that shortfall to $168 million after approving a $3.24 billion budget and using Fair Share funding to close the gap.

“From students commuting to class to seniors accessing medical care to workers getting to their jobs on time, this funding helps us deliver more frequent, reliable, and accessible service,” said MBTA General Manager Phillip Eng in a June 24 statement.

Meanwhile, the MBTA Advisory Board, made up of local elected officials, has urged the agency to rein in administrative hiring and consulting costs while detailing a clearer plan for future budgets.

The Fair Share Amendment is also helping fund the Massachusetts Department of Transportation’s $18.5 billion capital plan for highways, bridges, bicycle lanes and pedestrian paths. That plan sets aside more than $1 billion over five years to modernize the MBTA’s infrastructure, from new rail cars and bilevel commuter coaches to power system upgrades.

“Every transportation investment is an investment in people — connecting them to jobs, schools, healthcare, and each other,” Transportation Secretary and CEO Monica Tibbits-Nutt said in a statement.
The new funding comes as the state looks to modernize aging infrastructure and strengthen public transit’s role in reducing traffic congestion and emissions. In addition to capital improvements, transportation officials say they are working to boost service frequency and safety across bus and rail lines.

Advocates point out that reliable transit is vital for economic growth and climate goals. Regional leaders say future funding stability will likely depend on voter support for maintaining the Fair Share Amendment and other dedicated revenue streams.

Lawmakers are also exploring additional policies to help regional transportation authorities expand affordable service in underserved areas, aiming to keep Massachusetts competitive as it grows its workforce and housing stock.

Originally reported by Dan Zukowski in Construction Dive.