MassachusettsH 5470194th General Court (2025-2026)HouseWALLET

An Act making appropriations for the fiscal year 2026 to provide for supplementing certain existing appropriations and for certain other activities and projects

Sponsored By: FY26 Supplemental Appropriations

Signed by Governor

House Steering, Policy and Scheduling

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Bill Overview

Analyzed Economic Effects

56 provisions identified: 36 benefits, 5 costs, 15 mixed.

Full‑tuition aid for family medicine

UMass Medical School gets $10 million to cover remaining tuition and fees for MD students who choose family medicine and practice in Massachusetts for at least five years at qualifying sites. You must stay in good academic standing. If you do not meet the service promise, you must repay the award with interest. Funds are available through June 30, 2033.

Loan help for new public educators

Public school educators who earned a bachelor’s from a public institution after Jan. 1, 2020 can get up to $7,500 to repay student loans. You must have qualifying education debt and commit to work four years in a licensed school position. The program is funded at $10.1 million, with rules and a plan set by the education office. If funds run short, priority goes to districts with more low‑income students.

More money for special education

The state sets aside $152 million to reimburse districts and pay providers for special education instruction and transportation. Costs from FY2026 are reimbursed in the year ending June 30, 2027. Funds may be moved to item 7061‑0012 and spent under that item’s rules.

State allows a specific deduction

Taxpayers can use the federal deduction in Public Law 119‑21, section 70302(f), when computing Massachusetts tax. This can lower state taxable income for people who qualify.

Optional 4% tax for pass-throughs

An eligible pass-through can elect each year to pay a 4% Massachusetts excise on qualified income. Each qualified member then gets a refundable credit equal to 90% of their share of that entity tax. The election is made with the original, timely return and binds all members for the year. The rule applies only while the federal SALT cap is in effect. The revenue department may require estimated payments and will issue guidance.

Refundable credit for farm donations

Farm businesses get a refundable credit for donating food, meals, or crops to nonprofit food distributors. The credit equals the fair market value of the items, up to $5,000 per farm per year. You cannot also take a federal or state deduction for the same donation. You must attach a certification form to your return.

More funding to stabilize MBTA service

The state refills the MBTA deficiency fund with $450 million and requires 30 days’ notice before any withdrawal. It sets aside $20 million to launch a low‑income reduced fare program, subject to an approved plan and a 2026 report. It adds $60 million for infrastructure and planning, including a regional rail vision report. It provides $50,456,516 for an MBTA workforce and safety reserve.

More money for child care affordability

In fiscal year 2026, the state moves $150 million into the High‑Quality Early Education & Care Affordability Fund. This adds resources that can support child care affordability efforts. The law orders the transfer but does not set specific family benefit amounts.

Tax credit for cleaner jet fuel

Buyers of sustainable aviation fuel get a nonrefundable credit that offsets the fuel excise tax. The per‑gallon credit starts at $1.50 at 50% lifecycle GHG cuts and rises by $0.015 per 1% above 50%, capped at $2.00. The credit equals the lesser of that per‑gallon amount times eligible gallons or the excise actually paid. You must have a Proof of Sustainability. Unused credit carries forward up to 5 years, and credits can be recaptured for noncompliance.

Refundable farm donation credit ended

The state repeals the refundable farm donation credit that was worth up to $5,000 per farm per year. Farms that donated food or crops no longer get this tax credit.

Research deduction added, then removed

A state deduction tied to federal section 174A was added and then struck from the law. Businesses and investors cannot claim that new 174A‑based Massachusetts deduction.

Some business tax deductions barred

For tax years starting in 2025 and 2026, you cannot claim Massachusetts deductions tied to IRC section 168(n), the increased section 179 amount under federal law, or the part of section 163(j) changed by that law. If voters approve the 2026 tax‑rate initiative, these disallowances continue for all future years until the Legislature restores them and finds another revenue source.

Sustainable aviation fuel credits ended

The law repeals the sustainable aviation fuel tax credit in both the personal income and corporate excise codes. Buyers of qualifying fuel for Massachusetts departures no longer get the per‑gallon credit or any carryforward.

Housing tax break with 2032 cutoff

Developers with a state approval certificate can buy construction materials, tools, and fuel tax‑free for approved affordable multifamily projects. The state caps total exemptions at $35 million per year. The housing office stops new approvals under this rule on January 1, 2032; earlier approvals stay valid until a project finishes or is revoked. Certificates can be revoked if work does not start within two years or a project stops qualifying.

Farm donation credit changes for growers

The law creates a refundable tax credit for farm businesses that donate food, meals, or crops to qualified nonprofits. The credit equals the fair market value of donations, up to $5,000 per year, and you cannot also take a deduction for the same items. A certification of the donation must be attached to the return. At the same time, the prior farm donation credit in another section is repealed.

Corporate deduction rules adjusted

The law lets corporations use a federal deduction from Public Law 119‑21, section 70302(f), on Massachusetts returns. It also removes a state reference to Code section 174A that had been added earlier. Research expenses are not tied to that 174A reference in state law.

More funds for legal help in 2026

The law provides $1 million for immigration legal assistance in 2026. It also provides $12.3 million to cover fees and court costs for indigent clients with public counsel. Low‑income people and immigrants can get more legal help and pay less out of pocket.

Faster SNAP and cash help processing

The law gives $41.651 million to the Department of Transitional Assistance for 2026. The money funds caseworkers who process SNAP and cash benefits. Applicants should see more timely and reliable decisions.

More help with winter heating bills

The state provides $20 million for home energy help. Eligible low‑income households, including seniors, can get help paying winter heating bills. The housing office sets the maximum aid per home and may prioritize homes that heat with oil, propane, or kerosene.

More youth mental health and school help

The state provides $5.5 million for behavioral health. At least $4 million funds workforce scholarships, $1 million funds a K‑12 pilot linking schools and community behavioral health centers, and $500,000 expands school bridge programs. Another $1 million reserve expands high‑quality, third‑party‑rated services for transition‑age youth and must be matched by private dollars.

Funding for Green Schoolworks

The law provides $25 million in FY2026 for Green Schoolworks. The money supports green workforce training and school projects tied to this program.

More aid and matching for colleges

The law funds $15 million for targeted scholarships in FY2026 and creates an $18.3 million reserve for financial aid at public colleges. It also provides $10 million to match state university endowments and $10 million to UMass endowments. The board must ensure equal access to matching funds and report plans by September 1, 2026. These funds can increase student aid and support college programs.

More slots for early education

The law funds more spaces for income‑eligible early education and care. It sets at least $10.7 million for FY2027 contracted slots, $8 million to help educators pay their own childcare, and $7.5 million for educator loan forgiveness. Money must be spread fairly across regions and can support teen parents, homeless families, and informal care. The commissioner can move funds among listed items, but the amounts set aside for FY2027 slots and educator childcare cannot be used for other purposes.

Funds prisons, sheriffs, and legal payouts

The state funds prison facility operations with $31,009,996. It sets aside $54,472,655 for county sheriffs’ offices and related staffing for inmate care, with required reports. It provides $25 million to pay settlements and judgments. It also gives $211,857 to the Board of Bar Examiners for licensing operations.

Aid for local roads and safety

The state moves $101 million to help cities and towns pay big snow and winter recovery costs from 2026, including reimbursements. It adds $3.75 million for a pilot to fix public dirt and gravel roads. It sets $19.28 million for one‑time local transportation and safety projects named in the law.

Grants to improve regional transit

The state provides $25 million for regional transit workforce and training and other transit improvements. It adds $10 million for buses, charging upgrades, and stop and station projects. It sets $5 million for microtransit and last‑mile services, prioritizing rural areas, veterans, working families, older adults, people with disabilities, and low‑income riders. MassDOT must report on how these grants are used.

Tighter state rules for OZ taxes

For 2025 and 2026, Massachusetts applies the older federal Opportunity Zone rules. If the 2026 tax‑rate initiative passes, the state will keep using those pre‑2026 rules for future years until lawmakers change them. The law also says a qualified opportunity zone must be entirely in Massachusetts and designated under federal rules. This can limit newer federal changes at the state level.

Towns can spread snow costs

Your city or town may spread its FY2026 snow and ice deficit over FY2027, FY2028, and FY2029. The town must adopt a repayment schedule before setting the FY2027 tax rate. This can change when and how much you pay in property taxes.

Easier discharge proof for veterans

When the secretary approves a board’s vote on a veteran’s status, that decision is the only proof needed for character of discharge for state programs. This simplifies getting state benefits and services for veterans.

More funding for WIC and public health

The health department keeps and uses $600,000 in WIC rebates in FY2026 to support WIC services. The law also raises item 4513‑1012 funding by $600,000 (from $28.6 million to $29.2 million) for that existing health program.

Adult basic education and job readiness

The state funds $5 million in FY2026 for adult basic education and workforce‑readiness programs. Adult learners can get help to improve skills for jobs.

More aid for rural schools and busing

Rural districts can share $4 million in FY2026 and another $4 million in the year ending June 30, 2027. To qualify in FY2027, a district must have 35 or fewer students per square mile and per‑capita income at or below the state average; priority goes to the sparsest districts. The state also sets a $3 million reserve to help pay regional school transportation costs.

Negotiated public worker raises take effect

The law makes salary adjustments and other economic benefits in listed collective bargaining agreements effective under state law. Covered public‑sector employees receive the negotiated pay and benefits in those agreements.

Interest and penalties waived for fixes

If you filed a 2025 return before this law that didn’t follow sections 8, 16, 37, and 39, you can avoid interest and penalties. File a corrected return within 90 days of enactment to qualify.

Clear rules for hazard response team

State law now names a joint hazard incident response team made up of hazmat technicians and the state police bomb squad. The fire marshal can direct the team for incidents with reactive or energetic materials. Municipal firefighters on the team act for the Department of Fire Services but are not police and cannot use police powers.

Reserve to cover World Cup costs

The state sets aside $10 million to support hosting 2026 World Cup matches. The budget office can transfer funds to reimburse state costs tied to the matches.

State deadline extended to July 31, 2026

A statutory deadline moves from December 31, 2025 to July 31, 2026. People and agencies have seven more months to meet the requirement.

Statewide cannabis education program

The state gives $1 million for a cannabis public education program. It supports youth prevention, responsible use, impaired‑driving prevention, high‑potency product warnings, and safe transport. The program is developed with public health and education agencies.

Builds transportation workforce and delivery

The state gives $20 million to develop the transportation workforce and support project delivery. The money funds hiring and training for highway and rail/transit work, resilient infrastructure, and technical help for cities and towns.

More support for ferries and docks

The state provides $15 million for water transportation and ferries. At least $1.65 million funds an MBTA ferry route, and at least $2 million supports ferry services and pier and dock work in Barnstable, Bristol, Nantucket, and Dukes counties. The MBTA must report passenger counts by March 31, 2027.

Health equity and affordability funds grow

The state transfers $3.5 million to the Affirming Health Care Trust Fund. It also sets aside $500,000 to support the Health Care Affordability Working Group. These steps add resources for equity and affordability efforts.

Civics education grants to institutions

The state provides $2.05 million for civics education programs. Minimum amounts include $750,000 to the JFK Library Foundation, $1,000,000 to the Edward M. Kennedy Institute, $100,000 to the New Bedford Whaling Museum, and $200,000 to the Museum of African American History.

Grants to regionalize school services

The state funds $16.5 million for districts to study, plan, and carry out regionalization or shared services. At least $1 million builds a public toolkit released at least 180 days before any grant notice. Priority goes to districts with falling enrollment or unused space. These funds do not count as chapter 70 aid. Annual progress reports are required.

One‑time local school project grants

For FY2026, the state funds many one‑time education projects. Examples include $45,984 for special education offsets in Ashburnham‑Westminster, $50,000 for a CTE Teacher Access and Equity Fund, $875,000 to JFYNetworks, and $2,000,000 for a K‑12 digital toolkit. Other named local grants and capital supports are included.

Financial aid docs and privacy rules

Applicants using the named paragraph for state higher‑ed aid must submit the specific documents the law requires. The law also protects those records from public release under state privacy laws. Students, including some noncitizens, face clearer paperwork rules and stronger privacy.

State limits quick federal tax changes

Massachusetts will not automatically apply single, new federal tax‑code changes for the same tax year or earlier years. The revenue commissioner can allow a change if its estimated impact is under $20 million using a three‑year rolling average, and must post and share revenue estimates on time. The law also updates the definition of Massachusetts gross income and states those individual federal amendments have no effect for state gross income.

Adds ‘camping’ to statute list

The law adds the word “camping” to a list in a state statute. This is a wording change and does not create a new payment or program.

Local public safety gear and training

Essex County Fire Chiefs Association receives at least $1.4 million to plan and build a fire training and emergency response facility. In Freetown, police funding shifts from body‑worn cameras to an automated license plate reader system, with money available through June 30, 2027. Funds for Somerset under the same item are also available through June 30, 2027.

Numeric updates to program thresholds

The law changes certain numeric figures in section 6 of chapter 175M. One section replaces 40 with 100 in three places; another replaces 100 with 40 in three places. These are technical updates to the statute’s numbers.

Repeals two sections from 2016 law

The law repeals Section 10 and Section 18 of a 2016 act. Any rules or program authority tied to those sections no longer apply.

Section 22 starts January 1, 2027

Section 22 takes effect on January 1, 2027. This clause only sets the start date.

Family leave guidance and rate notices

Within 30 days of this law taking effect, labor officials must post guidance on paid family and medical leave changes, with 2027 impacts and steps to keep contribution balances while limiting employee tax burdens. If the department changes annual contribution rates administratively, it must notify budget and labor committees within 30 days and explain impacts to employers and workers. These are guidance and reporting rules; they do not set the contribution rates.

More time and new focus for projects

Funding in item 2000‑0103 remains available until December 31, 2029, giving more time to complete the aqueduct project. Another appropriation shifts from an airfield project to redevelopment and infrastructure on Merrimack Street.

Review federal corporate tax links

The revenue department must list how state rules tied to the federal tax code help corporate taxpayers and how much they cost the state. It must post the data online and report by June 30, 2026. The budget office and revenue department must also recommend which federal corporate breaks to decouple from and how to offset revenue if the personal income tax is 4.67% in 2027.

When new tax rules apply

The law sets start dates for several tax sections. Some apply to tax years beginning January 1, 2026; others start for years ending December 31, 2026 or December 31, 2030. Sections 8 and 16 apply to tax years beginning January 1, 2022. Sections 11 and 19 start January 1, 2029. Sections 9 and 17 do not take effect if a 2026 ballot measure to cut the income tax rate to 4% passes.

Sponsors & Cosponsors

Sponsor

FY26 Supplemental Appropriations
Affiliation unavailable

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 304 • No: 0

House vote • 6/4/2026

Enacted

Yes: 151 • No: 0

House vote • 6/3/2026

Committee of conference report accepted

Yes: 153 • No: 0

Actions Timeline

Signed by the Governor, Chapter 101 of the Acts of 2026
6/12/2026
Enacted and laid before the Governor
6/4/2026Senate
Enacted - 151 YEAS to 0 NAYS (See YEA and NAY No. 205)
6/4/2026House
Emergency preamble adopted
6/4/2026Senate
Emergency preamble adopted
6/4/2026House
Committee of conference report accepted, in concurrence -see Roll Call #188 (Yeas 37 to Nays 3)
6/4/2026Senate
Committee of conference report accepted - 153 YEAS to 0 NAYS (See YEA and NAY No. 199)
6/3/2026House
Rules suspended
6/3/2026House
Committee reported that the matter be placed in the Orders of the Day for the next sitting, the question being on acceptance
6/3/2026House
Referred to the committee on House Steering, Policy and Scheduling
6/3/2026House
Reported on a part of H5280
6/3/2026House
Reported from the committee of conference
6/2/2026House

Bill Text

Chapter 101 of the Acts of 2026
6/12/2026
PDF

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