Massachusetts House Passes FY26 Closeout Supplemental Budget

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BOSTON – The Massachusetts House of Representatives passed a supplemental budget to close the books on Fiscal Year 2026. The bill addresses important time-sensitive deficiencies, invests in maternal mental health services, and supports vital programs including MassHealth, the Department of Transitional Assistance (DTA), and the life sciences sector. It also includes policy sections to address emerging issues such as the use of AI in political advertising. The $2.354 billion bill includes $1.524 billion in net spending.

“From funding for critical services and programs like maternal mental health supports and MassHealth, to policy changes designed to ensure that artificial intelligence and taxpayer money aren’t used inappropriately in political advertising – this supplemental budget addresses a number of important, time sensitive issues as we work to wrap up the fiscal year,” said House Speaker Ronald J. Mariano (D-Quincy).

“As the House looks to close the books on the 2026 fiscal year, we are able to fill some gaps caused by a reduction of federal funding, such the cost shift onto the state for DTA salaries,” said Representative Tackey Chan (D-Quincy). “We were also able to include language clarifying charitable alcohol donations to certain events and entities, an important tool utilized by our local nonprofits which we worked through the Consumer Protection Committee that I am grateful to chair this session. All this, while we continue to meet our commitment to fund the stabilization ‘rainy day’ fund to near $9 billion.”

“This supplemental budget provides important funding for programs and services that residents across Massachusetts rely on, including MassHealth, early education, and the Massachusetts School Building Authority,” said Representative Bruce J. Ayers (D-Quincy). “I am pleased to support these investments to address immediate needs, strengthen our schools, and maintain essential services in communities across the Commonwealth.”

Key investments include:

  • $1.8 billion gross ($1.03 billion net) for MassHealth

  • $159 million for snow and ice removal costs incurred at the beginning of 2026

  • $78.9 million for unemployment insurance interest repayments

  • $56 million to increase nursing facility rates

  • $54.5 million to support the hiring of additional DTA caseworkers

  • $22.5 million for no-cost calls for the Department of Correction and county sheriffs

  • $18.5 million for the Early Childcare Rate Reserve

  • $13.8 million for the Massachusetts Office for Victim Assistance (MOVA) to help offset federal funding cuts

  • $10 million for the Massachusetts Life Sciences Center

  • $5.6 million to implement cannabis legislation enacted earlier in 2026

  • $4 million to support rest homes across Massachusetts

  • $2.25 million for maternal health needs, including $250,000 for the Massachusetts Child Psychiatry Access Program’s MCPAP for Moms statewide initiative

In addition to key investments, the bill passed today includes several policy provisions:

  • Prohibits the Commonwealth’s constitutional officers from spending or authorizing the use of public funds for advertisements or promotions to build personal recognition. It preserves their ability to use public funds to inform residents about state programs, as long as those communications are not intended to establish personal recognition.

  • Regulates the use of artificial intelligence in political advertisements. The bill would require the disclosure of AI use in political advertisements and would ban deceptive communications about a candidate or about the electoral process within three months of an election.

  • Clarifies the process by which local licensing authorities may grant temporary licenses for the sale of alcohol to charitable nonprofits. These nonprofits may accept donations of alcohol to sell in support of their charitable purpose.

  • Authorizes online lottery revenues to be distributed to the Early Education Grant Fund.

  • Increases the Massachusetts School Building Authority’s grant limit from $1.2 billion to $1.4 billion and permits up to 10 percent in additional grants above that limit each fiscal year.

  • Directs remaining excess capital gains tax revenue to two funds: 85 percent to the Transitional Escrow Fund, estimated at $207.7 million, and 15 percent to the Commonwealth Stabilization Fund, estimated at $36.6 million.

  • Eliminates the $10 surcharge imposed on car-sharing organization rentals.

  • Ratifies two additional collective bargaining agreements.

  • Preserves revenue generated under the federal 340B drug program for hospitals and community health centers until MassHealth secures certain federal expenditure approvals.

The bill passed the House of Representatives 152-0 and now goes to the Senate for review.

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