June Legislative Update
June 24, 2026
Fair Share Surtax Supplemental Delivers for MBTA
On June 12, Governor Healey signed the “Fair Share surtax” supplemental budget that provides more than $600 million to the MBTA. This bill, which has been a top A Better City priority, is another major victory for public transit and how the state elected officials are spending the surtax funding. This bill represents the second year in a row where the legislature passed a supplemental budget that spends a larger percentage of the Fair Share surtax on transportation than on education programs, bringing the overall split closer to 50/50—transportation will receive 58%, and education will receive 42%
The funding in this bill will support public transit throughout the Commonwealth, as there are line items for both the MBTA and Regional Transit Authorities (RTAs). Highlights include:
- $1.35 billion of spending from the Fair Share surtax reserve funds
- $620 million to support the MBTA’s operating budget, means-tested fare program, infrastructure maintenance, water ferry service, and increases to MBTA reserve funds
- $101 million to support municipal government’s costs for snow and ice removal last winter
- Smaller line items for municipal transportation projects throughout the state, funding to address unpaved roads, and last-mile innovation grants administered by MassDOT
This bill also contains several statutory changes, including:
- The creation of a new sales tax exemption for materials used in the construction of affordable, moderate income, and middle-income housing projects.
- Language that would delay Massachusetts’ conformity to some federal tax policy changes in the 2025 One Big Beautiful Bill Act (OBBBA), but also permanently decouple from these tax credits and if the ballot question to reduce the state income from 5% to 4% tax passes this fall.
You can download the bill here.
Cheers to Expanded Restaurant Hours and Social Zones
On June 8, Governor Healey signed a bill into law that will enable cities and towns to opt into a temporary pilot program allowing public alcohol consumption in designated outdoor districts and extending bar service hours by one hour. The pilot will run from June 8 through July 31—many bars have adopted a 3 AM last call, Boston has established two open-container drinking zones, and Cambridge has taken an expansive approach. In alignment with our broader efforts to prepare Greater Boston for a summer on the global stage, A Better City asked state leaders to support this bill, which will benefit visitors and local businesses alike.
You can read the Governor’s press release here.
Economic Development, Energy, and Environmental Bills and More to Come
The House and Senate leaders are currently negotiating the final FY27 state budget, and each branch is working on an economic development plan, and different proposals related to energy affordability, resilience, and environmental policies.
Please save the date for a legislative briefing for A Better City Members on July 20th from 10-11 AM and reach out to Tom Ryan or Isabella Gambill with any questions or feedback!
