Nearly two years after Massachusetts voted to create a more equitable tax system to directly support education and transportation, $2.3 billion dollars have been dispersed to a wide variety of important programs, with more than $1 billion in additional funding to be dispersed in the coming months.
For more information, please see MassBudget’s Fair Share resources page.
Fair Share Has Helped Education and Transportation Funding
There were some initial concerns that the Fair Share Amendment would not have the intended effect of increasing state spending on transportation and public education. Opponents warned that legislators would divert the new revenue to other areas, and there would be no real increase for the Commonwealth’s transportation and public education systems. Over the first two budgets of Fair Share spending, however, these fears have so far proved to be unjustified.
Education
In Fiscal Years (FY) 2024 and 2025, there was substantial new state investment in education, including early childhood, K-12, and higher education. With Fair Share investments, funding for education in the state budget grew in inflation-adjusted dollars much more than it would have otherwise. Fair Share funding enabled the Commonwealth to sustain new pandemic-era programs in education and supported continued year-over-year increases.
| A Closer Look at Fair Share's Effect on Education Funding | |||
|---|---|---|---|
| without Fair Share | with Fair Share | ||
| FY23 to FY24 | Percent Change | 1% | 5% |
| Dollar Change | $120,015,306 | $638,927,953 | |
| FY24 to FY25 | Percent Change | 0.03% | 2% |
| Dollar Change | $3,927,255 | $246,514,608 | |
Transportation
Transportation funding has grown sharply as a result of Fair Share dollars. In FY 2024, transportation funding increased 21 percent over FY 2023 totals. Part of this steep increase was due to a substantial 2023 investment in the MBTA’s Safety/Workforce Reserve Fund that was not fully spent and carried forward into FY 2024. Transportation funding experienced a slight decrease from that heightened level between FY 2024 to FY 2025, as shown in the graph below. The state budget provided $180 million for an MBTA Capital Investments program in FY 2024 to fund important non-recurring safety and performance improvements that received another $60 million in FY 2025. While the “lumpiness” of capital investments across fiscal years largely accounts for the less than one percent decrease from FY 2024 to FY 2025, transportation funding sustained a clear upward trajectory as a result of Fair Share investments.
| A Closer Look at Fair Share's Effect on Transportation Funding | |||
|---|---|---|---|
| without Fair Share | with Fair Share | ||
| FY23 to FY24 | Percent Change | 1% | 21% |
| Dollar Change | $18,883,023 | $491,207,524 | |
| FY24 to FY25 | Percent Change | -3% | -0.2% |
| Dollar Change | -$72,023,733 | -$5,848,234 | |
Where Fair Share Dollars are Going
| Fair Share Funding Distribution | |||
|---|---|---|---|
| Subcategory | FY24 Percent | FY 25 Percent | Cumulative Fair Share Funding Percent |
| Early Education and Care | 7% | 21% | 15% |
| Higher Education | 23% | 19% | 21% |
| Roads and Bridges | 18% | 3% | 10% |
| K-12 Education | 22% | 19% | 20% |
| Public Transit | 30% | 19% | 24% |
| Transfer to the Commonwealth Transportation Fund (CTF) | 0% | 19% | 11% |
| Total | 100% | 100% | 100% |
The Fair Share Amendment created a more equitable tax system and investments from Fair Share are helping to advance racial equity in the budget.
Fair Share dollars have been, and continue to be, transformational for Massachusetts residents. Below are some critical investments that illustrate its direct and immediate effects through increased affordability and access to crucial programs.
Longer term, Fair Share revenue will allow us to fix bridges, repair buildings at public universities, or annually finance $250 million in bonds to pay for transportation infrastructure improvements. These projects will have a real impact on the quality of life for everyone in the Commonwealth.
Examples of Fair Share Investments
Fare-Free Regional Transit: Initially funded by pandemic-era federal investments, fare-free regional transit services received state funding via Fair Share funds in FY 2024 and FY 2025. A $30 million investment in FY 2025 will allow Regional Transit Authorities to continue supporting fare-free programs that have been successful in increasing ridership, with riders more likely to be people of color and lower-income.
Free School Meals: $170 million of Fair Share revenue in FY 2025 will go to provide free school meals for Massachusetts’s children, regardless of income. Free school meal programs have been shown to reduce food insecurity for children and ease financial burdens on families.
Free Community College: The MassReconnect program, initially funded via Fair Share in FY 2024, provides free community college for people aged 25 and up. After years of decline, enrollment in community colleges across Massachusetts rose by 9 percent in Fall 2023, likely due to this additional investment. In FY 2025, $117.5 million of Fair Share revenue was allocated to MassEducate to expand on the success of the MassReconnect program by offering universal tuition-free community college and $1,200 stipends for books, supplies, and other expenses for students with low incomes. Tuition-free community college will be helpful for Massachusetts’s residents and employers alike, allowing students to receive education and training in sectors facing workforce shortages. With over 50 percent of community college attendees students of color, this program is important to promote racial equity and to begin to close the racial wealth gap.
Early Education and Care Operational Grant Fund: $175 million of Fair Share revenue will support the creation of a new Early Education and Care Operational Grant Fund to continue providing Commonwealth Cares for Children (C3) grants. These grants have been instrumental in increasing child care slots and stabilizing the child care sector. The grants work to promote equity by reserving a majority of funds for providers enrolling a considerable portion of children who receive child care subsidies.
MBTA Capital Investments: The MBTA received $240.8 million of Fair Share revenue for Capital Investments over these two years. In FY 2024, $180.8 million went toward infrastructure improvements for the commuter rail, bridge repairs and replacement, and signal improvements on the T, among other important improvements. These infrastructure improvements, like eliminating slow zones, will improve service for MBTA riders, of which 61 percent are people of color or Hispanic/Latino.
More Fair Share Funding Opportunities on the Way
The Legislature initially budgeted $1 billion for Fair Share in FY 2024, but current estimates are that Massachusetts collected $2.2 billion in Fair Share revenue. According to current law, 15 percent of the overage will go to the Education and Transportation Reserve Fund, which acts as a “rainy day” fund for Fair Share spending. The other 85 percent of the overage is transferred to the Education and Transportation Innovation and Capital Fund, which can be used for one-time investments. The Legislature is likely to budget these one-time investment funds from revenue collected in FY 2024 in supplementary budgets in late 2024. This presents an opportunity to invest in important education and transportation programs that were left unfunded or underfunded in the FY 2024 and FY 2025 budgets.
In the coming months, lawmakers will distribute $1 billion of unspent Fair Share revenue, most likely through supplementary budgets. To ensure Fair Share funds go to where voters intended to allocate them, advocates and lawmakers should consider one-time education and transportation investments that directly benefit their communities.
Appendix
| Fair Share Funding by Line Item | ||||
|---|---|---|---|---|
| Category | Program | FY 2024 | FY 2025 | Total Funding |
| Education | Childcare Grants to Providers | $0 | $175,000,000 | $175,000,000 |
| Education | Community College and State University Wraparound Supports | $0 | $2,500,000 | $2,500,000 |
| Education | CPPI Pre-K Initiative | $5,500,000 | $5,000,000 | $10,500,000 |
| Education | DHE Endowment Match | $10,000,000 | $5,000,000 | $15,000,000 |
| Education | Early College and Innovation Pathways | $5,000,000 | $2,500,000 | $7,500,000 |
| Education | Early Education & Care Provider Capital | $15,000,000 | $0 | $15,000,000 |
| Education | Early Education and Care Reimbursement Rate Increase | $25,000,000 | $65,000,000 | $90,000,000 |
| Education | Early Education Waitlist Reduction | $0 | $18,000,000 | $18,000,000 |
| Education | Financial Aid Expansion | $84,000,000 | $80,000,000 | $164,000,000 |
| Education | Free Community College | $0 | $93,500,000 | $93,500,000 |
| Education | Free Community College Implementation Supports | $12,000,000 | $0 | $12,000,000 |
| Education | Green Schoolworks | $50,000,000 | $10,000,000 | $60,000,000 |
| Education | Higher Education Capital Funding | $50,000,000 | $0 | $50,000,000 |
| Education | Income Eligible Waitlist | $25,000,000 | $15,000,000 | $40,000,000 |
| Education | Literacy Launch Initiative, FAIR SHARE | $0 | $20,000,000 | $20,000,000 |
| Education | MassReconnect | $20,000,000 | $24,000,000 | $44,000,000 |
| Education | Mental Health Birth to Higher Education | $0 | $5,000,000 | $5,000,000 |
| Education | Minimum Per Pupil Aid | $0 | $37,000,000 | $37,000,000 |
| Education | MSBA Capital Supports | $100,000,000 | $0 | $100,000,000 |
| Education | Nursing Programs Free Community College | $18,000,000 | $0 | $18,000,000 |
| Education | School Meals | $69,000,000 | $170,000,000 | $239,000,000 |
| Education | SUCCESS for State Universities | $0 | $14,000,000 | $14,000,000 |
| Education | Targeted In-Demand Scholarships | $25,000,000 | $10,000,000 | $35,000,000 |
| Education | UMass Endowment Match | $10,000,000 | $10,000,000 | $20,000,000 |
| Transportation | Federal Matching Funds | $25,000,000 | $0 | $25,000,000 |
| Transportation | Highway Bridge Preservation | $50,000,000 | $0 | $50,000,000 |
| Transportation | MBTA Academy | $0 | $10,000,000 | $10,000,000 |
| Transportation | MBTA Capital Investments | $180,800,000 | $60,000,000 | $240,800,000 |
| Transportation | MBTA Means Tested Fares | $5,000,000 | $20,000,000 | $25,000,000 |
| Transportation | MBTA Workforce/Safety Reserve | $20,000,000 | $36,000,000 | $56,000,000 |
| Transportation | Regional Transit Funding and Grants | $90,000,000 | $110,000,000 | $200,000,000 |
| Transportation | Roads & Bridges Supplemental Aid | $100,000,000 | $45,000,000 | $145,000,000 |
| Transportation | Transfer to the Commonwealth Transportation Fund (CTF) | $0 | $250,000,000 | $250,000,000 |
| Transportation | Water Transportation | $5,700,000 | $7,500,000 | $13,200,000 |
