MBTA receives $530M for operations, infrastructure projects

The Massachusetts Department of Transportation (MassDOT) board on July 22 approved a transfer of $530 million to the Massachusetts Bay Transportation Authority (MBTA). 

The funding includes $450 million to replenish the MBTA's Deficiency Fund, which supports the authority's operating budget when expenses exceed revenue; $60 million for physical infrastructure improvements; and $20 million for the MBTA's Income-Eligible Reduced Fare Program, which offers reduced fares to riders enrolled in an approved state assistance program.

"People across Massachusetts are seeing the difference in the MBTA as it becomes safer and more reliable every day," said Massachusetts Gov. Maura Healey in a press release. "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."

A similar $850 million funding transfer in 2025 supported accessibility upgrades, improvements to facilities and maintenance yards and repairs to track infrastructure.

The funding comes from Massachusetts' "Fair Share" taxes on high-income households. By increasing the state's tax revenue, Massachusetts can also borrow more funding from bond investors for its commonwealth transportation fund, which finances the MBTA and pays down state transportation debts.

The MBTA operates commuter-rail and subway services across Massachusetts.