February 2026 Legislative Update

Governor Files FY27 Budget Proposal; Tight Budget Times Ahead

Governor Maura Healey filed her Fiscal Year 2027 (FY27) budget proposal in late January, recommending a $62.8 billion spending plan that grows just 1.1 percent over estimated FY26 spending and includes no new taxes or fees. Filed as House 2, the budget incorporates $2.7 billion in Fair Share surtax spending and is paired with a $1.15 billion Fair Share supplemental bill that directs surplus FY25 revenues primarily to education and transportation. The proposal prioritizes affordability and economic competitiveness while advancing long-term investments in housing, transportation, education, health care, and local government capacity, all while maintaining fiscal discipline amid ongoing federal funding uncertainty.

For the construction and infrastructure sector, the budget continues to advance the Governor’s $8 billion multi-year transportation plan, proposing a combined $3.6 billion for transportation initiatives across House 2 and the supplemental bill. This includes $2.54 billion for the MBTA to stabilize operations, improve safety and reliability, and fully address projected FY27 operating deficits, as well as enhanced funding for MassDOT operations. Of particular importance to municipalities and contractors, the budget creates a new $75 million Funding for Accelerated Infrastructure Repair (FAIR) program to help cities and towns address long-deferred municipal bridge repairs, supported by Fair Share revenues. These investments are complemented by local aid—more than $10.4 billion statewide, including $1.356 billion in Unrestricted General Government Aid—to plan, procure, and deliver public works projects.

Of particular to UCANE members, the Governor’s FY27 budget proposal does not include funding for the Commonwealth Rate Relief program, which is usually championed by the House of Representatives. The Governor’s budget does, however, include level funding for the Clean Water Trust’s Contract Assistance line-item at $63.3 million. The proposed budget would provide slightly less funding for the administration of the Massachusetts Department of Environmental Protection (MassDEP) at $52.1 million, which is slightly lower than last year’s appropriation of slightly over $53 million. Finally, the Governor’s proposed budget funds the Underground Storage Tank Program at $5.8 million as the program continues to eliminate the backlog reimbursements associated with this historically popular program.

The budget also includes several outside sections with direct implications for public construction and project delivery. These provisions raise the threshold for requiring an owner’s project representative on certain public construction projects from $50 million to $100 million, remove the requirement that such representatives be registered professional engineers, and authorize MassDOT and the MBTA to pilot a progressive design-build delivery method for large, complex projects. Additional outside sections modernize zoning and housing permitting by allowing electronic notice for public hearings, helping streamline local development processes. Taken together, the FY27 budget continues to fund transportation, municipal infrastructure, and housing development.

To review the Governor’s proposed FY27 budget and associated policy briefings, please visit: https://budget.digital.mass.gov/govbudget/fy27/.

 

UCANE Offers Support as Environmental Bond Bill Keeps Moving Forward

The Mass Ready Act, also known as the Environmental Bond Bill, continues its winding path through the Massachusetts legislature. In January, the Joint Committee on Bonding and Capital Asset Management gave the legislation a favorable recommendation. The legislation (SB2542), which has not been amended yet, is a major Massachusetts climate resilience and infrastructure investment bill that authorizes approximately $2.9 billion to $3.1 billion in state bonds over about five years to strengthen community and environmental resilience against climate impacts.

In UCANE’s written testimony before the Committee, Executive Director Joe Nolan stated:

“UCANE appreciates the Committee’s consideration and commitment to advancing Senate Bill 2542 as an essential investment in the Commonwealth’s water infrastructure future. UCANE respectfully urges the Committee to include language modernizing the WIAC [Water Infrastructure Advisory Committee] and clarifying responsibility for police detail payments as these initiatives will improve planning, reduce costs, and promote project delivery efficiency. Further, providing additional funding to grant programs such as MassWorks and HousingWorks will ensure municipalities can build and maintain the underground infrastructure necessary for new housing and economic development, improved public safety and public health, and the preservation of the environment.”

UCANE’s testimony further highlighted that many municipalities are struggling to update or maintain their water infrastructure. According to the 2012 study conducted by the Water Infrastructure Finance Commission (MWIFC), the estimated gap in funding for the next 20 years is approximately $21.4 billion. A subsequent 2017 report from the Office of the Auditor’s Division of Local Mandates, which surveyed the Commonwealth’s municipalities directly, found the funding gap, excluding stormwater management needs, to exceed $18 billion. Most recently, the United States Environmental Protection Agency (EPA) found that the Commonwealth had $15.1 billion in drinking water needs and $21.7 billion in clean water (i.e. stormwater, sewer, etc.) needs.

While Massachusetts has made meaningful progress in recent years toward addressing the state’s significant water infrastructure needs, more work needs to be done. Municipalities’ and regional water authorities’ needs continue to grow - both in scale and urgency. As the Commonwealth faces increasingly stringent EPA mandates, PFAS remediation obligations, lead service line removal requirements, combined sewer overflow (CSO) elimination, nutrient-reduction regulations, biosolids challenges, and expanded stormwater compliance, the fiscal pressures on municipalities and ratepayers continue to be high.

The bond authorizations in the Mass Ready Act include hundreds of millions of dollars for high-risk dams, inland flood control, coastal resiliency, parks and recreation, transportation improvements (including bike lanes and bridges), clean water and waste management, and expanded climate planning and grant programs such as Municipal Vulnerability Preparedness. The legislation also combines this financial framework with permitting reforms intended to accelerate priority housing and critical infrastructure projects while integrating climate adaptation into planning and investment across state and local governments.

The Mass Ready Act is now before the Senate Committee on Ways and Means. To review a copy of the legislation, please visit: https://malegislature.gov/Bills/194/S2542.

 

Apprenticeship Measure Passes in Massachusetts House

The Massachusetts House of Representatives passed legislation that seeks to increase the state’s trades’ workforce by requiring the hiring of apprentices for all contracts awarded for public works projects over $10 million. Effective a year after signed into law, this bill would require projects to hire apprentices to work 5 percent of the total amount of hours worked, which would scale up to 10 percent in three years and 15 percent in four years.

Under the legislation, public agencies must require, as a condition of awarding a construction contract over $10 million for any public works, that all construction managers, general contractors and subcontractors maintain or participate in an apprentice program, approved by the Division of Apprentice Standards (DAS), for each apprentice able occupation represented in their workforce. Construction managers, general contractors and subcontractors must register all apprentices with DAS and comply with applicable apprentice-to-journeyperson ratios established by a trades licensing board or the Division.

The bill provides for an exemption upon a written determination by the public agency that, after good-faith solicitation, no qualified and responsible bidder maintaining or participating in an apprentice program is reasonably available for a specific trade or scope of work. Any construction manager, general contractor and subcontractor who fails to maintain or participate in an apprentice program, and is not otherwise exempted, cannot be deemed a responsible and eligible bidder.

The bill also requires prevailing wage payments by employers to include apprenticeship programs approved by DAS within Executive Office of Labor and Workforce Development and operated in compliance with DAS. The bill establishes a Special Commission on Apprenticeships to study and make recommendations on the development, accessibility, quality, funding, and utilization of apprenticeship and pre-apprenticeship programs across all industry sectors.

Contractor organizations, including UCANE, are looking closely at the $10 million threshold to see if the stated ratio of apprentices is workable. As well, other concerns about the legislation pertain to potential conflicts in mandated ratios under law and within collective bargaining agreements.

The bill passed the House of Representatives 154-1 and now goes to the Senate for consideration. To view the legislation, please visit: https://malegislature.gov/Bills/194/H5032.

 

Massachusetts Adds Payroll Jobs for Third Month in a Row; However, Unemployment Rises Slightly

Massachusetts added payroll jobs for the third consecutive month in December, according to new data released by the Massachusetts Executive Office of Labor and Workforce Development (EOLWD). Preliminary estimates show 4,600 jobs added in December, following revised gains of 4,300 in November and 4,600 in October. Since September, the Commonwealth has added 13,500 payroll jobs, signaling steady employment growth to close out the year, even as broader labor market conditions remain mixed.

At the same time, the report shows some softening in overall workforce metrics. The unemployment rate edged up slightly to 4.8 percent, while the labor force participation rate dipped to 66.5 percent. December data also indicates 9,300 fewer individuals employed, reflecting declines across private and nonprofit jobs, self-employment, and individuals exiting the workforce due to retirement or other factors. Despite the monthly dip, Massachusetts’ labor force has grown by 176,800 people since January 2023, placing the state among the top ten nationally for labor force growth.

Job gains in December were concentrated in several key sectors. The strongest month-over-month growth occurred in Leisure and Hospitality, which added 5,700 jobs, followed by Private Education and Health Services with 1,000 new jobs and Manufacturing with an increase of 700 jobs. State economists characterized the overall labor market as stable but slow-moving, noting that recent payroll growth has been tempered by modest increases in unemployment and declines in labor force participation.

As reported by EOLWD, the Healey–Driscoll Administration continues to emphasize workforce development as a central economic strategy. Recent initiatives include a goal of registering 100,000 new apprentices over the next decade in fields such as construction, health care, advanced manufacturing, technology, and education. The Administration has also reduced annual fees for Registered Apprenticeship sponsors and expanded eligibility for the Registered Apprenticeship Tax Credit, reinforcing efforts to attract, retain, and train workers to meet Massachusetts’ long-term workforce and economic needs.

 

Cape Cod Communities Receive Nitrogen Pollution Reduction Grants

According to a press release from the MassDEP, the Healey-Driscoll Administration announced that $830,000 in grants have been awarded to nine Cape Cod municipalities to support projects that reduce nitrogen pollution and help the towns meet septic system (Title 5) and water protection regulations. 

The Natural Resource Nitrogen Sensitive Areas (NRNSA) Grant Program, administered by the MassDEP, helps communities develop plans to comprehensively address wastewater and other sources of nitrogen pollution. Excess nitrogen has been an ongoing problem in Cape Cod, where it has fueled the growth of nuisance plants, weeds, and algae that use up much of the oxygen in the water — harming water quality and forcing out indigenous fish and plant species. 

State regulations allow Cape communities to choose a watershed-wide solution to mitigate nitrogen pollution by applying for a Watershed Permit. Alternatively, a town may choose to address wastewater solutions, via Title 5, by using improved septic technologies for new construction in areas heavily impacted by nitrogen. MassDEP is supporting the work of towns that choose the comprehensive Watershed Permit solution by providing both technical and financial assistance.

The nine Cape Cod towns receiving NRNSA grants are: Barnstable ($137,719); Brewster ($ 58,680); Bourne ($100,000); Dennis ($150,000); Falmouth ($7,182); Mashpee ($130,000); Truro ($59,199); Wellfleet ($37,220) and Yarmouth ($150,000).

To learn more about the NRNSA grant program, please visit: https://www.mass.gov/info-details/grants-financial-assistance-watersheds-water-quality.

 

Administration Issues Additional Water and Stormwater Grants

In a separate January announcement, the Healey-Driscoll Administration announced nearly $1.3 million in funding to support eleven drinking water and stormwater projects across Massachusetts. 

One set of grants is from the Water Management Act Grant Program, an effort by the Executive Office of Energy and Environmental Affairs (EEA) and MassDEP to maintain the state’s healthy rivers and streams and restore degraded water resources over time. The awards announced from this category total $489,480 to strengthen water management, streamflow restoration, and stormwater management by seven public water suppliers. 

The second set of grants, also administered by the MassDEP, was issued under the Small, Underserved, Disadvantaged Communities grant program. This voluntary, non-competitive program is designed to assist small, underserved, and disadvantaged communities that need additional support to meet federal drinking water requirements, reduce exposure to Per-and Polyfluoroalkyl Substances (PFAS), remove sources of lead, and address local drinking water challenges. The announced awards totaled $793,000 to support four public drinking water systems in completing critical upgrades and capital improvements that enhance water quality and remove contaminants. 

Under the Water Management Act (WMA) grant program, awards were made to communities including Milford, Hadley, Hopkinton, Shrewsbury, Attleboro, Provincetown, and Webster. These awards will fund stormwater project design, water treatment and supply planning, conservation outreach, district metering to detect leaks, interconnections to improve system resilience, and studies to reduce withdrawals while supporting long-term capital and operational needs. Together, these projects strengthen local water systems, protect stressed water resources, and advance more efficient water use statewide.

Under the Small, Underserved, Disadvantaged Communities grant program, awards were made to Blandford, Dighton, Plymouth, and Oxford to support critical drinking water infrastructure upgrades. Funded projects include ozone and aeration treatment systems, chemical byproduct removal, corrosion control and filtration improvements, and storage tank rehabilitation. These targeted investments help smaller and vulnerable communities improve water quality, modernize aging systems, and ensure safe, reliable drinking water for residents.

Funding for Small, Underserved, Disadvantaged Communities grants is provided by the U.S. Environmental Protection Agency through the Water Infrastructure Investments for the Nation (WIIN) grant program launched in 2018, authorized under the federal Safe Drinking Water Act. Since 2018, MassDEP has awarded a total of $3,325,000 to public water suppliers serving small, underserved, and disadvantaged communities across Massachusetts.

To learn more about this program, please visit: https://www.mass.gov/info-details/emerging-contaminants-in-small-or-disadvantaged-communities-grant.

 

News in Brief

Laskey Announces Departure from MWRA. Mr. Fred Laskey, the longest tenured Executive Director in the Massachusetts Water Resources Authority’s history, announced that he is resigning at the end of March after a 25-year run. Mr. Laskey oversaw exponential growth while ensuring stability and fiscal diligence during his time as the head of the state’s largest water authority. Before joining MWRA in June 2001, Mr. Laskey served as Commissioner of the Massachusetts Department of Revenue from 1991 to 2001, managing the Commonwealth's tax administration, child support enforcement and local services. He served as Secretary of Administration and Finance from 1998 to 1999. Mr. Laskey holds a Bachelor of Arts degree in Political Science and History from the University of Massachusetts, Boston.

 Barber to Run for State Senate Seat being Vacated by Jehlen. Representative Christine Barber, current House Chair of the Joint Committee on the Environment and Natural Resources, announced her intention to run for the State Senate seat (2^nd Middlesex District) being vacated by Senator Patricia Jehlen at the end of this term. The district covers parts of Cambridge, Somerville, Medford and Winchester. Representative Barber, the Greater Boston Food Bank's Advocate of the Year Award, Advocates of Autism of Massachusetts' Autism Champion Award, the Disability Policy Consortium's Thomas Menino Award for Public Service, and Metropolitan Area Planning Council's Legislator of the Year, is known as a legislator who works well with legislators across the political spectrum. Recent accomplishments include passing bills she filed such as: the Work and Family Mobility Act, a bill that allows all people to apply for a driver’s license, regardless of immigration status; salary range transparency which requires employers to disclose the pay range in job postings and track salary information; and eliminating copays for insulin, inhalers, and other drugs to address high-cost prescriptions. The daughter of a public-school teacher and manufacturing plant manager, Chair Barber earned a Master’s in Public Policy and Administration from the University of Massachusetts, Amherst and a B.A. from the College of the Holy Cross in Worcester.