By Christine Rasmussen

Last week, the Massachusetts House of Representatives approved a $2.354 billion fiscal 2026 Supplemental budget (H 5700) with a unanimous 152-0 vote thus closing out the state’s financial books for the year. The supplemental budget addresses structural shortfalls across several critical state sectors. The largest funding package allocates $1.8 billion to MassHealth, the state’s primary Medicaid program supporting disabled and low-income individuals. Additional target spending allocations include:

• $159 million to cover statewide snow and ice removal costs. 
• $54.5 million designated for Department of Transitional Assistance caseworkers. 
• $22.5 million to provide no-cost phone calls for state prisoners.
• $5.6 million dedicated to implementing existing cannabis-related legislation.
• $4 million allocated directly to rest homes.

In addition, the House voted to defeat the Gas Tax Holiday Amendment (H 5699):

The House decisively voted 30-132 to reject a proposed amendment that would have suspended the state’s 24-cents-per-gallon gas tax for a period of two months. Supporters advocated for the 60-day gas tax holiday as immediate financial relief for families and small businesses combating high costs. While opponents questioned the amount of savings for consumers and if the industry would use the money for lowering costs directly for consumers.

Retention of Offshore Wind Funding:

Lawmakers also voted 25-129 to strike down an amendment aimed at removing green energy subsidies from the supplemental budget. The defeated amendment sought to cancel a planned $35 million transfer from the General Fund to the Massachusetts Offshore Wind Industry Investment Trust Fund across fiscal years 2026 and 2027. Supporters defended the proposal by emphasizing the sector supports 3700 construction jobs and underpins the region’s expanding climate-tech market. Other Non-monetary Policy Adjustments:

• Prohibit constitutional officers from utilizing public funds for self-promotional advertisements, though keeping permissions intact to promote active state programs.
• Establishes strict guardrails on artificial intelligence (AI) in political advertising including disclosure of AI usage in political materials and bans deceptive media related to electoral processes or active candidates within three months of an election.
• Directs online state lottery revenues to the Early Education Grant Fund.
• Completely abolishes the standard $10 rental surcharge applied to car-sharing organization rentals.

Both House Committee on Ways and Means Chair Rep. Aaron Michlewitz and Minority Leader Rep. Brad Jones (R-North Reading) supported the legislation as a necessary fix for critical program deficits, while opponents like the Massachusetts Fiscal Alliance asserted that the passage of a secondary closeout budget immediately following the implementation of the primary state budget on July 1 signaled fiscal mismanagement.

The Next Phases Required for the Supplemental Budget Enactment into Law include: Senate Review and Re-drafting; Senate Floor Vote; Reconciliation; Enactment, and Governor’s Action – days to sign it into law, veto the entire bill, or exercise her line-item veto power to strike down or reduce specific spending amounts and policy provisions while signing the remainder of the budget.