On Monday, July 29th, Governor Healey signed a $58 billion compromise budget for Fiscal Year 2025 which started on July 1. While over 3 weeks late, the budget makes significant investments in transportation for the MBTA and RTAs.
Governor Healey
The budget appropriates $447 million in funding for the MBTA, a significant increase over FY2024, and includes funding for a systemwide low income fare program that will begin later this year.
The $447 million is divided between funding from the general fund and from the Education and Transportation Fund, which is funded by the surtax on millionaires.
The $447 million is divided between funding from the general fund and from the Education and Transportation Fund, which is funded by the surtax on millionaires. The MBTA will receive:
$314,280,000 for an operating transfer for general MBTA operations funded by the Commonwealth Transportation Fund;
$60,000,000 for capital improvements for physical infrastructure including $10,000,000 to support climate adaptation and climate readiness capital improvement projects;
$20,000,000 for systemwide low income fares for riders;
$36,000,000 for projects to address ongoing safety concerns at the Massachusetts Bay Transportation Authority related to the interim and final findings of the Federal Transit Administration’s Safety Management Inspection initiated in April 2022;
$7,500,000 for support for ferry service including pilot programs and adding additional ferry service on weekends and route expansion;
$10,000,000 to establish a pipeline for a skilled workforce across departments including but not limited to power, signals, rails and stations and buildings for capital, operating, preventative maintenance, climate adaptation and other projects.
The budget also makes historic investments in the RTAs including: $94 million from the general fund for general operating expenses and $110 million from the Education and Transportation Fund.
The $110 million investment is divided between operating, funding for free fare statewide, and grant program. The RTAs will receive:
$66,000,000 in funding for operations;
$30,000,000 for statewide fare free grants for the entire year;
$10,000,000 for grants to regional transit authorities for the creation or altering of routes that advance connectivity between existing public transportation routes;
$4,000,000 for grants to transit providers to support expanded mobility options for older adults, people with disabilities and low income individuals through the Community Transit Grant Program.
These transit investments will provide opportunities for transit service expansion in some regions, free and reduced fares for riders across the state, and establishing a long term workforce for agencies. We know there are more needs to be addressed and more funding needed but this increased investment is a positive step forward.