The Massachusetts Department of Transportation (MassDOT) Board of Directors approved a $530 million funding transfer to the Massachusetts Bay Transportation Authority (MBTA) on July 22, drawing from the Commonwealth’s FY26 Fair Share Supplemental Budget to shore up the transit agency’s operating budget, fund infrastructure improvements and support a reduced-fare program for low-income riders.
The funding transfer includes $450 million for the MBTA Deficiency Fund Replenishment which funds MBTA’s operating budget shortfalls, $60 million for MBTA Physical Infrastructure Improvements, and $20 million for the MBTA Income-Eligible Reduced Fare Program, officials said.
“People across Massachusetts are seeing the difference in the MBTA as it becomes safer and more reliable every day,” Massachusetts Gov. Maura Healey said. “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.”
Officials said the funding transfer would allow MBTA to maintain reliable service, improve transit infrastructure and expand access to public transportation.
“Fair share funding has been instrumental to the MBTA improving in all aspects: safety, reliability, accessibility, and more,” Interim Secretary and MBTA General Manager Phillip Eng said. “Across the Commonwealth, people rely on transportation to connect them to opportunities like good jobs, healthcare, education, and much more.”
The largest portion of the funding will support MBTA’s operating budget while expenses exceed revenues, while $60 will support new infrastructure projects and supplement existing capital projects to preserve and modernize the agency’s core assets. The remaining $20 million will provide discounted fares across all MBTA modes for riders with incomes at or below 200 percent of the federal poverty level. During Fiscal Year 2026, enrollment in the Income-Eligible Reduced Fare Program reached nearly 45,000 riders.