Healy signs $57.8 billion FY25 budget, highlights education, childcare, transit and shelter investments

Governor Healy signed the fiscal year 2025 budget on the Statehouse steps, calling the plan an "offensive" set of investments aimed at lowering household costs and strengthening education and transportation.

"It's a pleasure to be here and to be able to sign the budget for fiscal year 25," the governor said, thanking lawmakers and administration staff for their work and for what he described as a bipartisan effort to move the state "forward with urgency and purpose." He singled out Senate President Karen Spilka and Speaker Ron Mariano for their leadership.

The governor and administration officials described a package they say balances fiscal responsibility with new spending. The secretary of administration and finance told reporters the budget has a bottom line of $57,800,000,000 and represents 3.1% growth over FY24. The administration said the plan increases unrestricted general aid to cities and towns by 3%, totaling more than $1.3 billion, and continues full funding for the Student Opportunity Act.

Education and childcare were front and center: the budget funds "literacy launch," a program to provide evidence-based reading instruction for children ages 3 through grade 3, and makes permanent the C3 childcare provider grants aimed at stabilizing childcare capacity. The governor said the C3 grants protected more than 20,000 childcare seats statewide and described codifying that support as a priority. The package also expands access to community college, building on MassReconnect and proposing a broader free community-college program for residents through what speakers called "mass educate."

On transit, officials highlighted $45 million in supplemental Chapter 90 funds for local roads and bridges, a doubling of operating support for the MBTA, funding of reduced fares for low-income riders and targeted fare-free bus service at 15 regional transit authorities. The administration also said it will use $250 million in surtax (fair share) revenue to leverage roughly $1 billion in transportation investment over the next decade.

The budget also addresses climate and emergency response: officials said for a second year in a row they devote a full 1% of the state budget to energy and environment and establish a permanent disaster-relief fund to help communities struck by severe flooding and storms. The governor emphasized the state's strong bond rating and rainy-day balance as tools that allow the administration to invest while monitoring revenue uncertainty.

During a post-signing news session, reporters pressed officials on several items. When asked about more than $300 million in vetoes, the governor said the decisions were made to be fiscally responsible while limiting programmatic harm and invited the secretary to provide detail. The administration also said it returned two policy sections related to MassHealth with technical amendments: one to align payments to Cambridge Health Alliance with federal reimbursement requirements and another to refine member-notification language so notices target appropriate recipients.

Reporters asked about an unfolding hospital stability issue involving Steward Health Care. The governor responded bluntly, saying the state lacks unilateral power to prevent private owners from closing facilities and criticizing Steward's management and CEO Ralph Dela Torre. "We want Steward out of Massachusetts yesterday," he said, and added, "not a dime goes to Steward," characterizing proposed advances as interim support routed to facilities and lenders to preserve operations for patients and staff while buyers are identified.

On homelessness policy, the governor said there would be no rollback of recent emergency-shelter regulations and pointed to $326,000,000 in the budget for emergency shelter. He described practical limits — including a five-day temporary respite program — tied to shelter capacity and urged federal action on immigration as a related driver of system strain.

The administration said the budget is intended to preserve stability for providers and municipalities while advancing education, workforce and infrastructure goals. Officials framed the package as the product of months of negotiation and collaboration among the governor's office, the House and the Senate. The signing was followed by a brief question-and-answer session with reporters; no additional formal votes were taken at the event.

What happens next: the budget becomes law with the governor's signature; administration officials said they will work with local partners and agencies to implement the provisions described and continue monitoring revenue collections.