On July 4, 2025, Governor Maura Healey signed the final FY26 State Budget.
We are pleased to report that all of our key areas of funding – DDS line items, human services workforce (chapter 257) and The Arc’s earmark priorities (Operation House Call, mobile crisis training, Pappas Rehabilitation Hospital for Children, and MAICEI higher education funding) – were not included in any vetoes. This means that the funding levels listed in our earlier write up are consistent with this final version. You can see the final line items listed here.
Notably, the FY26 budget was signed on the same day that the devastating federal reconciliation bill became law. The Medicaid changes in this bill could cost Massachusetts anywhere from $15-25 billion over the next decade. Even a state as strong as Massachusetts will not be able to make up for this cut, and state leaders will be forced to make very hard choices. No concrete federal cuts were included in the FY26 state budget, but cuts to funding in the coming months are possible. The Arc will push to make sure that FY26 funding stays consistent. We will also continue our work with leaders in the state executive and legislative branches to do all that we can do to prevent future significant cuts.
We want to extend a strong thank you to Governor Maura Healey, Speaker Ronald Mariano, House Ways & Means Chair Aaron Michlewitz, Senate President Karen Spilka, Senate Ways & Means Chair Michael Rodrigues, and all Conference Commitee members and amendment sponsors for their work. And thank you to the over 2,000 advocates who used their voice to push for these priorities in the budget!
