Massachusetts Allocates $530 Million to Support MBTA Operations and Infrastructure

Massachusetts has allocated $530 million to the Massachusetts Bay Transportation Authority (MBTA) to strengthen transit operations, fund infrastructure improvements, and expand reduced-fare programs. The funding, approved by the Massachusetts Department of Transportation and MBTA boards, comes from the Commonwealth’s FY26 Fair Share Supplemental Budget through an Interdepartmental Service Agreement.

The package directs $450 million to replenish the MBTA’s Deficiency Fund, helping the agency address operating budget shortfalls and maintain transit services across the network. Another $60 million will fund station upgrades, maintenance facility improvements, rail yard enhancements, track repairs, and other capital projects that preserve and modernize the system’s core assets.

The remaining $20 million will expand the MBTA’s Income-Eligible Reduced Fare Program, which provides discounted fares to eligible riders earning up to 200 percent of the federal poverty level. The program served nearly 45,000 riders during FY26 through participation in SNAP and MassHealth.

The funding package combines operating support, capital investment, and fare assistance in a single appropriation. It allows the MBTA to maintain service levels, advance infrastructure projects, and improve transit affordability while addressing long-term funding pressures.