The $60.9 billion FY26 budget, signed July 4, allocates $470 million in operating support to MBTA from the Fair Share surtax on incomes over $1 million. The $1.32 billion supplemental budget, signed June 24 and funded by surplus Fair Share revenue from FY24, includes $548 million for the transit agency; that funding is slated to help rebuild operating reserves, support low-income fare discounts, and invest in infrastructure and water transit.
“The MBTA warned last November that it could face a $700 million operating budget gap in fiscal year 2026,” Smart Cities Dive reported July 8. “In June, the agency’s board of directors approved a $3.24 billion budget for the 2026 fiscal year [download below], narrowing its deficit from $307 million in 2025 to a projected $168 million in 2026 with help from the Fair Share appropriation and greater fare revenue.”
“I proposed this bill to address two of the most critical needs we have as a state—transportation and education,” Gov. Healey said during the FY26 budget signing July 4. “For decades, our transportation system has been underinvested in, and Massachusetts residents and businesses have been paying the price. We’re delivering an historic infusion of funding to upgrade roads and bridges and finally stabilize the finances at the T. We’re also expanding access to the programs that have been proven to support students and help them recover from the learning losses they suffered due to the pandemic, like tutoring and career and technical education. We’re grateful to the Legislature for their continued partnership as we put these dollars to the best use for our people and our economy.”
“This is an investment that serves all as education and transportation are essential to improving quality of life and connecting communities,” MBTA General Manager Eng said during the supplemental budget signing last month. “The future is bright, not just for the MBTA but for the people who rely on us every day. From students commuting to class to seniors accessing medical care to workers getting to their jobs on time, this funding helps us deliver more frequent, reliable, and accessible service. I’m deeply grateful to Gov. Maura Healey, Lt. Gov. Kim Driscoll, and the Legislature for their leadership and commitment to strengthening public transportation for people from all walks of life across every corner of the Commonwealth. The MBTA is both excited and grateful to be part of this moment and is here to serve.”
Separately, in May the MBTA Board of Directors unanimously approved the agency’s Fiscal Years 2026-2030 MBTA Capital Investment Plan, which includes more than 660 unique projects to “modernize, expand, and increase the safety and reliability of the MBTA transit network” with a programmed spend of $9.8 billion over the next five fiscal years.
Further Reading:
- Report: U.S. CBP Delaying CRRC MBTA Carshell Deliveries
- MBTA, Keolis Launch Renewable Diesel Pilot
- MBTA: South Coast Rail Service to Begin March 24
- MBTA Approves $54MM Plan to Introduce BEMUs on Fairmount Commuter Rail Line
- Tenth of a Series: ‘T’ Stands for ‘Trouble’
- For MBTA, Another 41 Hyundai Rotem Bilevels
