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Healey’s ‘State of the Commonwealth’ Boasts About MBTA Turnaround, Promises to Fill Budget Shortfall

"We’re going to close the T’s budget gap so Phil and his team can keep cookin’," the Governor promised.

A crowd of people are seated at desks arranged in a semicircle facing a speaker in a red jacket standing at a dias in the front of a large, ornate room.

Governor Maura Healey delivers her annual State of the Commonwealth address at the State House on Jan. 22, 2026. Photo by Emily Boyle/Governor’s Press Office.

Taking to the dais for the third time in her governorship, and just a few days after announcing her reelection campaign, Governor Maura Healey introduced her affordability agenda to the people of Massachusetts in her 2026 State of the Commonwealth Address. 

Her remarks addressed energy, housing, healthcare, education, the economy, social media, safety, veteran affairs, and of course, transportation.

'The service – and the vibes – have never been better'

Early in her speech, Gov. Healey spoke about the state of transportation to celebrate the progress her administration has made in bringing the MBTA back to full, reliable, efficient service.

Crediting General Manager Eng, Healey boasted about eliminating 220 slow zones on the T, making regional transit authority buses fare-free, adding new ferry routes, opening South Coast Rail, and introducing late-night service. 

However, more recently, MassBudget and Transportation for Massachusetts’ released a new report “Taking Stock of Transportation Funding,” and the MBTA's Chief Finance Officer Mary Ann O'Hara gave her first budget presentation of the year at the MBTA’s January Board of Directors meeting.

The throughline of these new communications is that insecurity of transit funding in Massachusetts continues to loom even with new funding from the Fair Share Amendment.

Governor Healey promised that "we’re going to close the T’s budget gap so Phil and his team can keep cookin’."

But she did not mention any specific strategies that could address the MBTA’s forecasted $648 million budget shortfall next year. 

She also talked about her administration’s 10-year, $8 billion bond plan for major transit, road, and bridge projects, which was part of last year’s budget legislation. 

In a lighter moment, Healey, an accomplished basketball player, took a moment to celebrate the opening of the new Bill Russell Bridge in Boston, and then announced plans to rename the Interstate 290 viaduct over Southbridge Street in honor of Russell’s teammate Bob Cousy in his hometown of Worcester.

On housing: 'Build more and build faster'

The governor also promised to beat a state goal that calls for building 220,000 new homes in Massachusetts by 2035. 

“We’re not just going to meet that (target), we’re going to beat it,” Healey announced. The Governor says that construction on 100,000 new homes is already underway. 

Policies to get there include reducing the time it takes to get environmental approvals to 30 days, renovating former public buildings into apartments, and encouraging “accessory dwelling units” on individual property. 

In the case of affordability in Massachusetts, the governor announced the expansion of the "Down Payment Assistance" (DPA) mortgage program that gives families $25,000 toward down payments, and a program that lowers interest rates and can save money over the life of the loan.

Renters are getting relief through broker fees being banned, and seniors are seeing  housing cost support from the state doubled.

“That’s real money that makes a real difference,” Healey continued. “For the thousands of families out there right now looking to get into that first home, help is on the way.”

'More solar, more transmission, more battery storage'

In her segment on energy, Healey acknowledged how we are in the “coldest and most expensive time of the year.” To provide relief during this season, the Governor promised to reduce electric bills by 25 percent and gas bills by 10 percent for every residential utility customer in the winter months of February and March.

The Governor said that the state will cover $180 million worth of rate reductions from existing funding sources.

The governor also committed to opposing any rate increases from utility companies. She also acknowledged her filing energy affordability legislation to bring in more power and save consumers $13 billion, allowing and encouraging utility companies to buy energy at the lowest prices resulting in lower bills, directing utilities to justify every charge on energy bills (“anything that’s not helping you, we’ll strike it,”) and, as of last week, flipping the switch on a new power line that connects New England to cheaper hydroelectric power from Canada.

In a related press release, Energy and Environmental Affairs Secretary Rebecca Tepper said that “our energy affordability legislation would deliver lower cost energy in winter months by getting more energy built, getting us a better price, and driving down delivery costs.” 

Standing up to Trump 

The Governor also spoke about how her administration is keeping vital public services running, in spite of a lack of cooperation and support from the federal government.

Healey highlighted several initiatives the state has pursued, including writing an insurance-covered vaccine prescription for all of Massachusetts, increasing funding for science and research, cutting taxes for middle class families, introducing free community college, implementing free school meals for all students, and financially supporting Planned Parenthood and protecting those who provide that care. 

She also promised that her upcoming budget will increase funding for local food banks, and that her administration will ensure that those enrolled in the SNAP program will get the benefits that they need.

Speaking about the proliferation of violent and lawless behavior from President Trump's masked ICE agents, the Governor acknowledged that "people are feeling fear, anxiety, and anguish. They’re seeing the chaos coming from Washington every day."

But "this is Massachusetts," she continued. "We don’t back down. We look out for each other. We stand for what we believe, and we will not change who we are – ever."

Governor Healey’s full remarks from the State of the Commonwealth can be found on the MassGovernor’s Youtube channel.

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