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Massachusetts Capitol Update

Massachusetts Capitol Update

May 4, 2026

Massachusetts Budget Passes the House

Last week, the Massachusetts House of Representatives passed a $63.4 billion state budget package. The bill increased spending by more than $81 million over Governor Healey’s previously filed FY27 budget earlier this year. This version of the budget is roughly a 4% increase over the FY26 budget, representing about $3 billion more in state spending.

During the budget debate, several amendments were proposed to cut taxes in Massachusetts. However, House leadership rejected all of those amendments arguing the state cannot afford to lose the revenue. Amendments were filed to:

  • Suspend the state gas tax
  • Reduce the state sales tax to 5%
  • Reduce the state income tax to 4%

 

Despite House leaders arguing Massachusetts cannot afford to cut taxes right now, they managed to tack on an additional $81 million in spending via amendments. The FY27 budget being presented demonstrates a whopping 60% increase in spending since the $39.4 billion FY2018 budget. The House budget will now advance to the Senate to be debated later in May.

 

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