An Update on Transportation Funding
June 18, 2025
On Monday, June 16th the Legislature reached a final agreement on how to allocate over $1.3 billion in Fair Share surtax revenue. This funding has been collected through the new surtax on incomes over $1 million, and must be spent only on education or transportation programs. For the first time, this bill spends nearly 60% of this money on transportation programs, marking a significant shift and a major milestone for public transit advocacy in Massachusetts. Since the implementation of the surtax in 2023, the Commonwealth had spent approximately 40% on transportation and 60% on education.
This new spending bill reflects long-standing priorities championed by A Better City, including using the Fair Share surtax to increase state assistance to the MBTA. In this bill, the MBTA will receive $535 million to help close its projected operating budget deficit. This money will now prevent service cuts for riders and avoid layoffs for transit workers. In addition to MBTA funding, the bill provides: over $140 million for municipally owned transportation infrastructure; $50 million for Regional Transit Authorities; and over $35 million for small bridges, culvert repairs, water ferry service, and other transportation projects across the Commonwealth.
"This agreement would provide the MBTA with multi-year stability for their operating budget and service levels for riders, while also addressing other transportation needs in all areas of the Commonwealth. This legislative compromise also makes meaningful progress toward achieving a 50/50 split between transportation and education spending from the surtax, which was a key recommendation of the Governor's Transportation Funding Task Force. We appreciate the complexity of making a budget amid unprecedented federal uncertainty, and thank Legislative leadership for prioritizing investments in transportation that will pay dividends in economic benefits to our regional economy and uplift our communities." – Kate Dineen, President & CEO, A Better City
As you know, A Better City served on Governor Healey’s 2024 Transportation Funding Task Force and helped to shape the final report. This bill advances several key recommendations from that report, including the imperative to stabilize the MBTA through its current “fiscal cliff,” and to allocate Fair Share revenue evenly between education and transportation.
Another major Task Force recommendation—also a top priority for A Better City—is to use Fair Share revenue to increase the state’s borrowing capacity for transportation infrastructure improvements. That specific proposal is still under consideration as part of the broader budget negotiations, but we are hopeful the Legislature will act on it in the coming weeks.
In terms of next steps, Governor Healey is expected to sign this bill in the next few days. You can read the full bill here, and please don’t hesitate to reach out to Tom Ryan.
