On June 30, 2025, the Massachusetts Legislature convened for a Senate session that culminated in the approval of a significant budget agreement totaling $61 billion. This budget reflects a $3.3 billion increase from the previous fiscal year but is nearly $1 billion less than the governor's initial proposal. The budget aims to address ongoing economic uncertainties while safeguarding essential services for the state's most vulnerable populations.

A key highlight of the budget is its commitment to fiscal responsibility, as it does not raise taxes or fees for residents and businesses. Instead, it proposes an additional $33 million investment in the state stabilization fund, bringing its balance to a historic high of $8.26 billion. This marks a remarkable 523% growth since February 2017, when the fund's balance was just $1.3 billion.

The budget allocates $2.4 billion for fair share spending, primarily directed towards public education and transportation infrastructure. This includes a record-breaking $7.36 billion in Chapter 70 state aid for public schools, an increase of $497 million from the previous year. Additionally, the budget ensures that all Massachusetts high school graduates can attend community college at no cost, further supporting educational access.

Transportation also received a significant boost, with a $470 million direct investment in the Massachusetts Bay Transportation Authority (MBTA) system. This funding, combined with previous allocations, totals $1 billion for operational improvements and infrastructure upgrades. Furthermore, the budget increases the annual dedication of fair share revenues to the Commonwealth Transportation Fund, unlocking billions for future transportation investments.

In addressing food insecurity, the budget includes $86 million for various initiatives, including emergency food assistance and support for the Women, Infants, and Children (WIC) program. Health care coverage remains a priority, with a substantial $21.1 billion investment in MassHealth, ensuring comprehensive coverage for over 2 million residents.

The budget also introduces several policy changes aimed at improving housing affordability and access. Notably, it requires that real estate broker fees be paid by the party that reaches out to the broker, preventing costs from being passed on to tenants. Additionally, studies will be conducted to explore ways to lower housing costs and incentivize affordable housing development.

As the Massachusetts Legislature moves forward, this budget agreement not only addresses immediate fiscal needs but also lays the groundwork for future investments in education, transportation, and social services, reflecting a commitment to the well-being of all residents.