(Press Release from Transportation for Massachusetts (T4MA) on the co-authored report between T4MA and MassBudget.)
New Transportation for Massachusetts and Massachusetts Budget and Policy Center report shows that Fair Share has been a boon to transportation, but more revenue sources needed
Leveling off of Fair Share resources, uncertainty of federal funds requires pursuing additional funding strategies
BOSTON — A report released today by Transportation for Massachusetts (T4MA) and Massachusetts Budget Policy and Center (MassBudget) finds that Fair Share funding has led to significant investment in the state’s transportation system, including stabilizing the MBTA’s finances for the past year, but alone will be insufficient to solve challenges that include a $24.5 billion MBTA state of good repair backlog.
“Fair Share has been a major success story for transportation, but as we write our next chapters, we need more resources to fully repair and improve our systems,” said Reggie Ramos, executive director of T4MA. “We’re turning the corner on decades of underinvestment, and we can build on the strong foundation Fair Share provides to finally bring to life the system our residents deserve.”
Endorsed by more than 40 organizations across the state, Taking Stock of Transportation Funding examines how much progress has been made in solving our transportation funding challenges since January 2025, when the Governor’s Transportation Funding Task Force released a set of recommendations for long-term, sustainable transportation revenue. The Task Force recommended directing a larger proportion of Fair Share dollars to transportation, leveraging Fair Share revenue to finance future capital investments, and aggressively pursuing other large federal investments.
Fair Share has indeed been a boon for transportation, supporting an additional $100 million in Chapter 90 funds this year for municipal roads and bridges and an overall 122 percent funding increase for the 15 Regional Transit Authorities, which will be able to provide fare-free service to all riders this year and continue to expand their reach. Most notably, Fair Share funds also closed a $700 million MBTA deficit, preventing a “fiscal cliff” with crippling service cutbacks – though the MBTA announced last week it now faces a $560 million deficit for the coming year.
However, the remarkably high level of Fair Share spending available in FY 2026 ($3.38 billion, including the supplemental budget) is partially the result of exceeding projections in its earliest years of collection and creating a surplus of additional revenue, a dynamic that is highly unlikely to be fully sustained in FY 2028 and beyond as budget writers create more accurate predictions.
If Fair Share continues to collect around $3 billion per year, then this will more or less be the amount that can be devoted to both education and transportation – a meaningful level of investment but substantially less than this year, and not enough to cover the full range of needs for our roads, bridges, and transit into the future.
“As the state faces billions of dollars in federal funding cuts,” says Viviana Abreu-Hernández, MassBudget President, “it is rewarding to see how the Fair Share surtax – enacted by Massachusetts voters – has become the most important and reliable funding source for transportation operations and capital investments.” Abreu-Hernández continues, “still, it is imperative that additional resources are identified to achieve the reliable, efficient, and high-quality system that Massachusetts riders deserve. This report helps to answer critical questions about the current status and the future of funding of Massachusetts transportation.”
As Fair Share funds level off, the Task Force’s recommendations around aggressively pursuing federal funds face an uncertain future. Looking forward, the Commonwealth’s $18.5 billion, 5-year Capital Investment Plan (FY 2026 to FY 2030) relies on $8.3 billion in federal funds, or nearly 45 percent of the total. Forty one percent of the MBTA’s capital plan relies on federal funds.
Between unprecedented executive branch changes to Congressional spending and Congress unexpectedly rescinding its previous spending decisions, Massachusetts can’t count on future federal grant programs to fill gaps for long-term investments.
“With a cloudy federal landscape, we need to control our own destiny in planning for our transportation future,” said Dwaign Tyndal, Alternatives for Community and Environment Executive Director. “Fair Share gets us partway there, but people across the Commonwealth who count on getting to school, doctor’s appointments, and seeing family need our leaders to put a plan in place to meet our challenges ahead.”
The report points to several revenue options on the table that could supplement Fair Share funding, as detailed in T4MA’s Funding Our Future report released last year. These include congestion pricing as New York City has successfully introduced, which could raise $220 to $440 million per year while reducing traffic, a major quality of life issue. Increases to ride share fees could bring in $140 million.
