MassDOT and MBTA Boards of Directors Approve $530 Million in Funding from Healey-Driscoll Administration to Continue Improving Safety, Affordable Services, Reliability

The Massachusetts Department of Transportation (MassDOT) Board of Directors approved the agreement to transfer $530 million in funding from the Commonwealth's FY26 Fair Share Supplemental Budget through an Interdepartmental Service Agreement (ISA) with the MBTA on July 22, 2026. This followed the MBTA Board vote on July 16, 2026.

The funding transfer includes:

• $450 million for the MBTA Deficiency Fund Replenishment, which funds the MBTA's operating budget shortfalls

• $60 million for MBTA Physical Infrastructure Improvements

• $20 million for the MBTA Income-Eligible Reduced Fare Program

"People across Massachusetts are seeing the difference in the MBTA as it becomes safer and more reliable every day," said Governor Maura Healey. "This funding builds on the progress we've made while making it easier and more affordable for people to get where they need to go. We are committed to giving the MBTA the resources it needs to deliver the high-quality transit that riders deserve."

"Fair share funding has been instrumental to the MBTA improving in all aspects: safety, reliability, accessibility, and more," said Interim Secretary and MBTA General Manager Phillip Eng. "On behalf of the MBTA, I want to thank the Healey-Driscoll Administration and our Legislature for making transportation a priority. Across the Commonwealth, people rely on transportation to connect them to opportunities like good jobs, healthcare, education, and much more. I'm proud to have the support of the administration, as we ensure that we deliver meaningful results that improve the quality of life for the public and continue making transit available for all that rely on it"

"Fair Share funding is a necessary investment needed to strengthen the MBTA today and to set the agency up for success long-term," said Chair of the MBTA Board of Directors Thomas M. McGee. "I want to thank the Healey-Driscoll Administration, the Legislature, and the MassDOT and MBTA Boards of Directors for ensuring that the system is positioned to meet the needs of the Commonwealth. Over the past few years, the MBTA has been delivering more station upgrades, more reliable safe service, and more for its riders overall. I hope to see the momentum continue with investments like these."

The investment continues the Healey-Driscoll Administration's commitment to providing the MBTA with stable funding to maintain reliable service, improve transit infrastructure, and expand access to affordable public transportation for riders across the Commonwealth.

$450 Million: MBTA Deficiency Fund Replenishment

The largest portion of the funding will replenish the MBTA's Deficiency Fund, which supports the Authority's operating budget when expenses exceed revenue. This funding enables consistent, reliable service and maintenance across all modes.

$60 Million: MBTA Physical Infrastructure Improvements

Similar funding provided last year supported accessibility upgrades, improvements to facilities and maintenance yards, and repairs to track infrastructure.The FY26 allocation will support these priorities by funding new infrastructure projects and supplementing existing capital projects, which will help to preserve and modernize the MBTA's core assets while improving reliability for riders.

$20 Million: MBTA Income-Eligible Reduced Fare Program