Dive Brief:
- The Massachusetts Bay Transportation Authority will receive $530 million from the state’s Fair Share revenue, the MBTA and Massachusetts Department of Transportation announced Wednesday. The Fair Share program is an additional tax imposed on residents with incomes over $1 million.
- The agreement transfers $450 million to cover the transit agency’s operating deficit, $60 million for infrastructure improvements and $20 million toward its income-eligible reduced fare program.
- Fair Share revenue in the 12-month period ending June 30 raised nearly $3.4 billion, which will go toward education and transportation, according to CommonWealth Beacon.
Dive Insight:
The MBTA, which provides subway, bus, commuter rail, ferry and paratransit service in the Boston area, suffered a fiscal and safety crisis during the pandemic. In April 2023, the MBTA appointed Phillip Eng as general manager. He focused on infrastructure improvements: eliminating more than 220 speed restrictions on rail lines and replacing over a quarter-million feet of rail. As pandemic relief funds ran out, the state stepped in with the Fair Share program.
"People across Massachusetts are seeing the difference in the MBTA as it becomes safer and more reliable every day," Massachusetts Gov. Maura Healey said in a statement. “We are committed to giving the MBTA the resources it needs to deliver the high-quality transit that riders deserve."
Average weekday ridership across all MBTA modes rose over 21% from May 2024 to 945,332 riders in May 2026, according to the agency.
“Fair share funding has been instrumental to the MBTA improving in all aspects: safety, reliability, accessibility, and more,” Eng said in a statement. He has also served as interim secretary at the Massachusetts Department of Transportation since October.
Healey signed the state’s $63.42 billion fiscal year 2027 budget on July 9. The Fair Share program devotes $1.73 billion for education and $970 million for transportation. In addition to funds for the MBTA, $220 million will go to MassDOT to upgrade roads and bridges, and regional transit authorities across the state will receive $184.8 million.
