Massachusetts signed a $60.9 billion FY26 budget on July 4, unlocking $470 million in MBTA support through a Fair Share surtax on incomes over $1 million. This is reported by the railway transport news portal Railway Supply.

The $1.32 billion supplemental budget, signed June 24, uses surplus Fair Share revenue from FY24. It adds $548 million for MBTA operations, low-income fare programs, infrastructure projects, and water transit upgrades.

Massachusetts Approves FY26 Budget with Major MBTA Funding
MBTA Photograph

In November, MBTA projected a $700 million budget gap for FY26. But in June, the agency’s board approved a $3.24 billion operating budget, cutting the shortfall to $168 million. Fair Share funds and increased fare revenue helped reduce the gap.

Massachusetts Directs Fair Share Funds to Transit Improvements

Governor Maura Healey highlighted transportation and education as top priorities. “Massachusetts has underinvested in transit for decades,” she said. “Now, we’re delivering historic funding to repair roads, stabilize the MBTA, and improve schools.”

Don’t miss…Turkey High-Speed Rail Network Surpasses 100 Million Passengers

She also emphasized student-focused initiatives like tutoring and career training to recover from pandemic-related learning losses. The budget reflects the administration’s goal of inclusive recovery.

MBTA General Manager Phillip Eng welcomed the new support. “This funding improves service for all—students, seniors, and workers,” he said. “Thanks to Massachusetts leadership, we can enhance reliability and reach.”

The MBTA plans to use these funds for more frequent, accessible, and dependable services. Fare affordability programs are also a key part of the investment strategy.

Massachusetts Commits to $9.8 Billion Capital Transit Plan

Separately, in May, the MBTA Board approved the FY26–FY30 Capital Investment Plan. This $9.8 billion roadmap includes over 660 projects to modernize and expand the MBTA transit network.

Projects aim to increase system safety and service capacity. The investment covers infrastructure upgrades, rolling stock, and accessibility improvements across the Commonwealth.

Together, the operating and capital budgets mark a new era for public transportation. Massachusetts leaders believe this investment strengthens communities and boosts long-term economic growth.

Source: www.railwayage.com

News on railway transport, industry, and railway technologies from Railway Supply that you might have missed:

Don’t miss…Avelia Stream Nordic X80 Wins Red Dot Award 2025 for Cutting-Edge Design

Find the latest news of the railway industry in Eastern Europe, the former Soviet Union and the rest of the world on our page on Facebook, Twitter, LinkedIn, read Railway Supply magazine online.

Place your ads on webportal and in Railway Supply magazine. Detailed information is in Railway Supply media kit