House budget plan seeks major boost in MBTA funding

HOUSE LEADERS are proposing a major increase in funding for the MBTA and regional transit authorities in their fiscal 2025 budget despite concerns about tightening revenues.

The House budget is scheduled to be released on Wednesday, but a sneak-preview released Tuesday morning suggests the chamber’s leaders want to pour $738 million into the MBTA and the regional transit authorities — $281 million from the state’s general fund and $457 million from money collected from a 4 percent surcharge on income above $1 million. The state money is on top of roughly $1.5 billion the MBTA expects to receive from the state sales tax.

House leaders said the proposed investment in the MBTA represents an increase of 41 percent over the current year’s funding level and the largest ever by the chamber. The House is also proposing to use 35 percent of the $1.3 billion it expects to raise from the millionaire tax to support the T and the regional transit authorities.

The overall funding far surpasses what Gov. Maura Healey proposed in her budget, while providing less than what the T says it needs to launch a half-price fare for low-income riders. The T says it needs between $26 million and $29.7 million in the first year of the low-income fare. Healey’s budget gives the T $45 million for the initiative, while the House proposal provides only $20 million.

The proposed House and Healey budgets are in sync in providing $314 million in operating funds for the T. The two budget proposals also aren’t far apart on regional transit authorities – Healey’s budget provides $169 million while the House plan offers $184 million.

The House proposal steers another $220 million to the MBTA, including $75 million for infrastructure investments, $65 million for safety investments, $40 million for an “MBTA Academy to support recruiting and training efforts,” $35 million for climate resiliency measures, and $5 million for ferry services.

Even with the increased state funding, the MBTA is facing budget shortfalls in coming years as it steps up hiring and faces increasing demands for new services and infrastructure investments. Healey is counting on a task force she appointed to come up with a new funding plan for the MBTA and transportation in general, but the House spending plan signals the chamber is not content to wait around for new funding to arrive and is pushing ahead sith some financial help now.

The proposed House spending plan is expected to be released in its entirety on Wednesday and taken up by the full House two weeks later.