Healey unveils $3.1 billion capital plan with sharp increase in housing funding and a new MBTA Communities Catalyst Fund

Governor Maura Healey announced the Massachusetts Capital Investment Plan for fiscal 2025–2029 at Arlington Town Hall, calling it a multiyear framework to fund housing, transportation, climate resiliency and local infrastructure.

“We're here to announce Massachusetts Capital Investment Plan for fiscal year 25 through 29, which sets out historic investments for people in our communities,” Healey said, framing the plan as a resource enabled by strong fiscal management and a favorable bond rating.

The plan totals just over $3,100,000,000, the administration said. Secretary Matt Gorgowitz of the Executive Office for Administration and Finance described the package as a balanced five‑year program that grows available capital by $212,000,000 over typical yearly increases and directs the largest share of new resources to housing, economic development, climate and preservation of state assets.

A major focus of the announcement was housing. The administration said capital investment for housing rises by about 30%, bringing housing capital to nearly $400,000,000. Secretary of Housing and Livable Communities Augustus said the increase will help the state produce, preserve, modernize and improve homes across Massachusetts and called the funding a “historic commitment.”

Augustus outlined new and existing tools to accelerate production. He said the administration is pressing the Legislature on the Affordable Homes Act — which would authorize a $50,000,000 Momentum Fund — and is putting $10,000,000 into a momentum fund now to begin projects ahead of final legislation. “This allows us to start building sooner,” Augustus said.

The administration also launched a pilot MBTA Communities Catalyst Fund to reward municipalities that have adopted MBTA Communities zoning. Augustus said the fund will be seeded with $15,000,000 of capital and used to support infrastructure, planning, housing development and property acquisition in compliant communities like Arlington.

The package contains follow‑on housing program investments, including $57,000,000 for the Affordable Housing Trust Fund (projected in comments to create more than 1,000 affordable units, primarily for middle‑income households) and $108,000,000 for the Housing Works infrastructure program. Augustus said the plan also invests $157,000,000 in state‑funded public housing for repairs and upgrades across 229 local housing authorities.

On infrastructure and community programs, Lieutenant Governor Kim Driscoll highlighted $718,000,000 in local infrastructure funding and a continuation of 68 community grant programs such as MassWorks and Chapter 90. Driscoll said the plan weaves decarbonization and energy efficiency through capital investments to bolster climate resilience at the local level.

Gorgowitz noted the administration is also seeking legislative changes and use of fair‑share resources to expand borrowing capacity: House proposals would direct nearly $250,000,000 of fair‑share money into the Commonwealth Transportation Fund to enable up to $1.1 billion in borrowing over five years, including $300,000,000 for MBTA rail enhancements.

Rachel Heller, CEO of the Citizens' Housing and Planning Association, said the scale of the problem requires action: “We need 200,000 homes for people across income levels by 2030 to stabilize home prices and rents,” she said, and urged intentional affordability goals so at least 60,000 of the new homes are affordable to low, extremely low and moderate income households.

The administration said the capital plan and the various programs it supports are intended to be advanced with the Legislature and through partnerships with municipalities. Healey closed the event by inviting questions and thanking local leaders and attendees. No formal votes were taken at the Arlington event; the plan must be advanced through standard budget and legislative processes before funds become available.