Governor presents $59.6 billion House 1 budget focusing on housing, transportation, education and mental health

Governor Maura Healey on Friday presented the administration's House 1 fiscal year 2026 budget, a $59,600,000,000 proposal she described as “balanced” and “fiscally responsible,” highlighting investments in affordable housing, transportation, education and behavioral health.

The budget addresses the 5 W's up front: it is House 1 for FY26, filed by the Office of the Governor and the administration, proposes a 2.6% increase in core spending compared with the current fiscal year, and is accompanied by a supplemental plan to spend $1,320,000,000 in surplus fair share surtax revenue from FY24. The administration said the combined package would unlock long-term capital for a 10-year, $8,000,000,000 transportation program and support a $5,000,000,000 Affordable Homes Act.

Why it matters: the proposal sets the administration's fiscal and policy priorities for the upcoming budget negotiations with the Legislature, directing large sums to housing production, local aid and higher education capital needs while proposing changes to several existing programs and funding rules.

The governor opened the presentation by thanking agency teams and framing the budget as a continuation of the administration’s priorities. “We have focused on things that matter to people in Massachusetts,” she said. “The $59,600,000,000 budget that we file today will continue all of that progress and builds on that progress in new and transformative ways.”

Key allocations and proposals detailed by the administration include: - Housing: The budget builds on the Affordable Homes Act and pairs House 1 with a supplemental plan to help deploy $5,000,000,000 in housing funding the administration said is intended to…