Agreement completes Student Opportunity Act commitment, expands housing production, and strengthens the MBTA
(BOSTON—7/1/2026) Without raising taxes on Massachusetts residents, the Massachusetts Legislature today delivered a Fiscal Year 2027 budget that drives down costs for residents, boosts the state’s economy, and adds to the state’s savings account. Senator Cindy F. Friedman (D-Arlington) voted for the budget, which includes significant funding for the communities of the 4th Middlesex district.
The plan makes record investments in public education, unlocks new housing production, strengthens the state’s public transportation systems, and protects vulnerable residents from the impact of federal cuts.
The bill spends $63.4 billion, a 4 percent increase from last year, and includes $2.7 billion in Fair Share funds that will support public education and transportation as voters intended. The budget raises no taxes and adds $51 million to the state’s ‘Rainy Day’ Stabilization Fund, which is projected to reach a historic $8.2 billion balance by the end of Fiscal Year 2027.
“Recognizing that the Commonwealth and our residents continue to feel the effects of a challenging economy, the Legislature’s Fiscal Year 2027 budget prioritizes responsible investments in the services and programs our constituents rely on,” said Senator Friedman, Senate Chair of the Joint Committee on Health Care Financing. “This budget provides a substantial increase in local aid, by providing municipalities with flexible funding to keep up with the rising costs of goods and services and continues to meet our implementation timeline of the Student Opportunity Act, with a record level of per-pupil Chapter 70 funding. With an uncertain financial outlook, this is a budget that I believe meets so many needs of residents in the Fourth Middlesex district and statewide in a fiscally responsible manner.”
Education
The agreement completes the Legislature’s commitment to fully fund and implement the Student Opportunity Act with $7.66 billion in Chapter 70 aid to public school districts, an increase of $297 million over Fiscal Year 2026 and the highest level ever, along with a record $160-per-pupil minimum in local school aid.
4th Middlesex Chapter 70 education funding — $101,383,859 (4.54% increase over FY26)
- Arlington — $21,226,373
- Billerica — $22,129,264
- Burlington — $11,059,876
- Lexington — $20,399,075
- Woburn — $16,125,949
- Minuteman High School — $3,241,069
- Shawsheen Valley Technical — $7,202,253
The budget also revives the Foundation Budget Review Commission (FBRC) to examine the K-12 funding formula and assess how the state can address rising costs in special education, student transportation, personnel, and educator health care statewide.
The agreement funds the Special Education Circuit Breaker at $654.6 million to help students who need support, which, combined with $152 million from the recent Fair Share supplemental budget, brings the total investment to $806.6 million, reimbursing school districts for 75 percent of the costs of educating students with disabilities and complex needs.
Other education investments include $475 million for the Commonwealth Cares for Children (C3) grant program to support early education and care providers’ day-to-day operational and workforce costs, $137 million for the MassEducate and MassReconnect free community college programs, $20 million for rural school districts, and $180 million for universal free school meals, which serve nearly 150 million free meals to Massachusetts kids every year.
The budget also includes $11.7 million to support students receiving special education services through the DESE/DDS Residential Prevention Program, and $2 million for a new grant program helping schools address young people’s social media use.
Municipalities
The agreement provides record support to cities and towns across the state, including $1.363 billion for Unrestricted General Government Aid (UGGA), a $40 million increase over Fiscal Year 2026 and the highest level ever. For new dollars, the legislation implements a new funding formula to equitably distribute the increase throughout all of the state’s 351 communities.
4th Middlesex UGGA breakdown — $30,407,745 (3.73% increase over FY26)
- Arlington — $9,725,663
- Billerica — $7,495,264
- Burlington — $3,404,965
- Lexington — $2,077,091
- Woburn — $7,704,762
4th Middlesex Local Project Funding Secured by Senator Friedman — $2 million
Through amendments to the Senate’s version of the FY27, Senator Friedman secured $2 million in total funds to support local projects and organizations. These funds, which were all included in the final version of the FY27 budget, include:
- $1.5 million in funding to continue to operationalize the pilot program at the newly-opened Restoration Center of Greater Lowell (formerly known as the Middlesex County Restoration Center);
- $100,000 for English at Large, Inc. in the city of Woburn for English language tutoring and small group instruction;
- $90,000 for Social Capital Inc. for youth leadership and civic engagement programming in the city of Woburn;
- $85,000 for Arlington Youth Counseling Center, Inc. for youth mental health support in Arlington;
- $85,000 for Saheli, Inc. in the city of Woburn to provide legal and housing assistance to immigrant survivors of domestic abuse;
- $70,000 for Food Link, Inc. to address food insecurity in the city of Woburn and the towns of Arlington, Billerica, Burlington and Lexington; and
- $70,000 for Burlington Police Department to offset unanticipated overtime costs incurred by the department.
Housing
In another step toward addressing the housing crisis and building homes faster statewide, the budget builds on last session’s Affordable Homes Act by streamlining local permitting, supporting development on nonconforming properties, providing reasonable timelines for projects under existing zoning, and modernizing the variance standard, all aimed at boosting housing production and driving down costs.
Transportation
The agreement provides $465 million in direct investment for the MBTA, which, combined with $595 million from the recent Fair Share supplemental budget, brings the total new investment in the system to over $1 billion for Fiscal Year 2027. It also includes $217 million for Regional Transit Authorities (RTAs), including $40 million to sustain fare-free transit service statewide. The state’s fare-free Regional Transit program has resulted in ridership exceeding pre-pandemic levels.
The budget also responds to a string of fatal wrong-way driving incidents on Massachusetts highways, including the tragic line-of-duty death of State Trooper Kevin Trainor, by directing MassDOT to implement new infrastructure and officer training, including directional striping, signage, lane delineators, and motorist alert systems.
Health Care
The agreement extends the ConnectorCare expansion pilot program through 2027. Since 2024, the pilot has helped more than 115,000 residents access more affordable insurance through lower premiums, no deductibles, and reduced co-pays.
The budget also codifies existing federal protections requiring comprehensive insurance coverage of HIV pre-exposure prophylaxis (PrEP) without cost sharing or utilization management barriers and directs a new study to modernize and improve the long-term sustainability of emergency medical services in the Commonwealth.
Retiree COLA Reform
This budget includes comprehensive, fiscally prudent reforms to cost-of-living adjustments (COLAs) for retired public employees, based on recommendations from the Special COLA Commission. It establishes a COLA Reserve Fund financed in part by pension investment returns above target, provides enhanced COLA benefits for certain current retirees based on years in retirement, and allows the base amount used to calculate future COLAs to increase in $1,000 increments as funding allows.
Food and Economic Security
The agreement protects access to benefits through Transitional Aid to Families with Dependent Children (TAFDC) and Emergency Aid to the Elderly, Disabled and Children (EAEDC), and includes a $500 clothing allowance per child for families receiving TAFDC benefits.
It repeals the Learnfare law, which cut off TAFDC benefits when children had too many unexcused school absences and ended up hurting families who lost needed assistance.
It also provides $56.1 million for Emergency Food Assistance, an increase of $6.1 million over Fiscal Year 2026, and $21.5 million for the Healthy Incentives Program (HIP), which supports local farmers and access to healthy food.
Protecting Vulnerable Residents
The agreement includes provisions protecting children aged 16 and 17 from sexual interactions with mandated reporters and others responsible for their care and oversight, including teachers, coaches, police officers, and social workers.
In response to the tragic fire at Gabriel House in Fall River, the agreement provides $500,000 to implement recommendations from the Assisted Living Residences (ALR) Commission to improve safety standards, emergency preparedness, and oversight at assisted living facilities statewide.
The budget also establishes a commission to study transitional youth services for individuals with disabilities whose access to special education services will end due to high school graduation or turning 22, as the Legislature works to preserve community-based care options amid federal challenges to the Olmstead decision.
Sports Wagering Revenue
The agreement adjusts the distribution of sports wagering revenue, directing 5.5 percent to the Sports and Entertainment Fund and 2 percent to the Economic Development Trust Fund, dedicating new resources to support the Commonwealth’s economic growth.
The full text of the Fiscal Year 2027 budget is available online.
Having been passed by the Legislature, the bill has been sent to Governor Healey for her signature.
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