Massachusetts Approves $2.3 Billion Budget Bill to Close Fiscal Year 2025

By Karen Gutierrez, Univision — Boston, Massachusetts | November 25, 2025

The state of Massachusetts has officially closed its fiscal year 2025 with the signing of a $2.31 billion budget bill, a comprehensive package designed to stabilize healthcare programs, strengthen the hospital network, and fulfill prior commitments in social and operational areas. Governor Maura Healey signed the measure on Tuesday, following weeks of legislative negotiations amidst financial pressures on the state’s healthcare system. Central to this decision is the MassHealth program, which supports thousands of residents depending on its continuity.

State Fund to Close the Fiscal Year

According to Healey’s office, the governor received the bill last Wednesday, the last day of the year’s formal session. Her signature confirms the allocation of necessary expenditures to “close the books” on the fiscal year, an annual practice that allows for deficit adjustments, reinforcement of critical programs, and redistribution of resources based on the most urgent needs.

Details of the Approved Package

The budget proposal includes significant allocations:

• $1.67 billion for MassHealth, the program that provides medical coverage to millions of residents.
• $374 million in payments directed to hospitals that were previously part of Steward Health Care, which has faced financial troubles.
• $10 million to cover organizational costs and services related to the 2026 FIFA World Cup, of which Massachusetts is a partial host.
• $18.3 million for student financial aid.
• $10 million for operational and technical improvements within the Department of Transitional Assistance.

These figures were confirmed by spokesperson Karissa Hand, who indicated to the State House News Service that the governor officially signed the fiscal closure.

MassHealth at the Core of Fiscal Closure

The increase in funding for MassHealth reflects the growing demand and rising costs associated with public healthcare. This financing will cover pending care commitments and sustain services for low-income individuals, the elderly, families, and people with disabilities.

Support for the Health Safety Net

The new law also includes a rise in the state assessment applied to hospitals, aimed at generating greater revenues for the Health Safety Net, a program that covers essential services for those uninsured or underinsured. Additionally, the measure authorizes a transfer of $50 million from the Commonwealth Care Trust Fund to that very program.

Steward Hospitals: Funding to Stabilize the System

Hospitals previously part of Steward Health Care have been at the center of discussions regarding financial sustainability. The allocated $374 million aims to ensure minimum operations, cover debts, and continue serving communities that depend on these facilities.

Massachusetts’ Commitment to the 2026 FIFA World Cup

The package includes $10 million for organizing events related to the FIFA World Cup in 2026. These funds will cover public services, logistics, and commitments made when Boston was confirmed as one of the official host cities. Organizers have indicated that the state still needs to fulfill part of its commitments to FIFA, and the city is under pressure to deliver the necessary infrastructure.

Educational Assistance and Technological Modernization

Additionally, the fiscal closure allocates $18.3 million to student financial aid programs, an investment aimed at alleviating educational costs in a state where access to higher education remains an economic challenge. Furthermore, the $10 million earmarked for the Department of Transitional Assistance will allow for system modernization, improving internal processes and expanding technological capacities.

Funds Retained for Sheriffs

Unlike in previous years, lawmakers have decided to withhold most of the allocations requested by sheriffs to balance local budgets. The reason: the Legislature is awaiting an interim report from the inspector general, scheduled for late February, before releasing the requested funds.