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Representative Haggerty, House Pass Supplemental Budget to Close Out Fiscal Year 2026

Bill addresses important time-sensitive deficiencies and provides additional support for state programs and services

BOSTON – State Representative Richard M. Haggerty (D-Woburn), along with his colleagues in the House of Representatives, passed a supplemental budget to close the books on Fiscal Year 2026. The bill addresses important time-sensitive deficiencies, provides support for maternal mental health services and for vital programs including MassHealth, the Department of Transitional Assistance (DTA), and for the life sciences sector. It also includes policy sections to address emerging issues such as the use of AI in political advertising. The $2.354 billion bill includes $1.524 billion in net spending.

“This supplemental budget reflects our continued commitment to meeting the needs of residents in our communities and across the Commonwealth,” said Representative Haggerty. “The bill makes important, responsible investments in critical services and programs, from reimbursing our communities for last winter’s snow and ice removal costs to supporting early education, maternal mental health, and helping address food insecurity by strengthening access to SNAP benefits, to name a few. It also tackles the emerging challenges of artificial intelligence in political advertising, protecting the integrity of the information voters receive. This supplemental budget continues the Commonwealth’s ten consecutive years of fiscally responsible budgets without having to dip into our rainy-day fund.”

Key investments include:

  • $1.8 billion gross ($1.03 billion net) for MassHealth 
  • $159 million for snow and ice removal costs incurred at the beginning of 2026
  • $78.9 million for unemployment insurance interest repayments
  • $56 million to increase nursing facility rates
  • $54.5 million to support the hiring of additional DTA caseworkers
  • $22.5 million for no-cost calls for the Department of Correction and county sheriffs
  • $18.5 million for the Early Childcare Rate Reserve
  • $13.8 million for the Massachusetts Office for Victim Assistance (MOVA) to help offset federal funding cuts
  • $10 million for the Massachusetts Life Sciences Center 
  • $5.6 million to implement cannabis legislation enacted earlier in 2026
  • $4 million to support rest homes across Massachusetts
  • $2.25 million for maternal health needs, including $250,000 for the Massachusetts Child Psychiatry Access Program’s MCPAP for Moms statewide initiative

In addition to key investments, the bill passed today includes several policy provisions:

  • Prohibits the Commonwealth’s constitutional officers from spending or authorizing the use of public funds for advertisements or promotions to build personal recognition. It preserves their ability to use public funds to inform residents about state programs, as long as those communications are not intended to establish personal recognition.
  • Regulates the use of artificial intelligence in political advertisements. The bills would require the disclosure of AI use in political advertisements and would ban deceptive communications about a candidate or about the electoral process within three months of an election.
  • Authorizes online lottery revenues to be distributed to the Early Education Grant Fund.
  • Increases the Massachusetts School Building Authority’s grant limit from $1.2 billion to $1.4 billion and permits up to 10 percent in additional grants above that limit each fiscal year
  • Directs remaining excess capital gains tax revenue to two funds: 85 percent to the Transitional Escrow Fund, estimated at $207.7 million and 15 percent to the Commonwealth Stabilization Fund, estimated at $36.6 million. 
  • Eliminates the $10 surcharge imposed on car-sharing organization rentals.
  • Ratifies two additional collective bargaining agreements.
  • Preserves revenue generated under the federal 340B drug program for hospitals and community health centers until MassHealth secures certain federal expenditure approvals.

The bill passed the House of Representatives 152-0 and now goes to the Senate for review.

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