June 2025 Legislative Update

Senate Passes FY26 Budget; Conference Committee to Meet

Towards the end of May, the Massachusetts Senate finalized its $61.51 billion fiscal year (FY26) 2026 budget. The FY 2026 Senate budget now includes $61.51 billion in total line-item spending, $70.3 million less than the House budget, $568.1 million less than the Governor’s budget, and $3.7 billion above the FY 2025 General Appropriations Act (GAA) signed into law last July.

As reported by the Massachusetts Taxpayers Foundation (MTF), through four days of debate, $81.1 million in new spending was added and 66 outside policy sections were added to the Senate spending plan. The Senate took action on 1,058 amendments through a combination of standalone votes and amendment ‘bundles,’ which categorically approve or reject many amendments at once. In total, 493 amendments were adopted, 371 were rejected, and 194 were withdrawn from consideration. New spending in the Senate’s final budget is primarily driven by program earmarks in the areas of health and human services, economic development, and the judiciary. The Senate also added 66 policy sections during the debate process, including notable proposals related to limiting prescription drug costs, housing production, and local liquor licensing.

Key Funding Highlights for UCANE’s Areas of Interest:

• Level funding of $63.3 million for the Clean Water Trust’s contract assistance.
• No funding for the Commonwealth Sewer Rate Relief Fund.
• $5.9 million for the underground storage tank program.
• Slightly over $54 million in funding for the Massachusetts Department of Environmental Protection (MassDEP).

With the House and Senate having now completed their respective FY26 budget proposals, a Conference Committee has been formed to reconcile differences between the competing versions before the start of the 2026 fiscal year on July 1st. With uncertain federal actions relative to funding for key state programs (i.e. Medicaid / MassHealth, which accounts for almost 40% of the state budget), Senate leaders have warned that it may be necessary to review budget decisions later in FY26. House leaders, for their part, remain bullish on state revenue prospects, but have also cautioned that the lack of a federal partner in Washington could impact the ability to sustain certain programs at higher amounts.

For more details on the Senate FY26 budget, please visit: https://malegislature.gov/Budget/SenateBudget

Congress Passes Resolutions to Revoke EPA’s Waivers for ACT / HDO Rules

In a move that has far-reaching implications for end-users of medium- and heavy-duty (MHD) trucks nationwide, Congress has now passed resolutions to revoke California’s authority to enforce its Advanced Clean Trucks (ACT) regulation and the related Heavy-Duty Low NOx Omnibus (HDO) rule. The rollback, which now awaits President Donald Trump’s signature at the time of this writing, directly impacts the regulatory landscape for heavy-duty vehicles—a sector critical to the construction industry.

The ACT rule, first introduced in 2020 in California and adopted in 2021 in Massachusetts, mandated that truck manufacturers progressively increase the sales of zero-emission trucks, with the goal for 2035 to have 75% of all new Class 8 trucks be electric. Complementing this, the HDO rule, adopted within the same timeframes, required a 90% reduction in nitrogen oxide (NOx) emissions from diesel engines. For end-users of MHD trucks that rely on robust, reliable diesel trucks for hauling materials and heavy equipment, these regulations raised numerous concerns about rapid technological changes, high costs, and the readiness of charging infrastructures.

While over thirty-five (35+) stakeholder groups joined together to fight for a delay in the ACT and HDO rules in Massachusetts, many of these organizations’ national associations did the same before Congress. In doing so, many national groups warned members of Congress that aggressive electrification mandates—while beneficial for reducing emissions—could result in steep price increases, supply chain challenges, and operational disruptions. Industry representatives argued that the timeline for transitioning to zero-emission vehicles under the current mandates is unrealistic for companies already managing tight schedules, slim profit margins, unproven technology and lacking infrastructure. Many national organizations also highlighted concerns about a small set of states essentially forcing market actions in states that are not following California standards. 

Environmental advocates and California’s state leaders have strongly condemned the congressional actions. They argue that California's long-standing authority under the Clean Air Act to set stricter air quality standards is essential not only to public health but also to national progress on climate change. California officials have pledged to challenge the repeal in court, calling the resolutions unconstitutional and a direct attack on state authority.

In Massachusetts, a dynamic to watch will be the likely court challenge to Congress’ action and the state’s earlier exercise of enforcement discretion. The MassDEP delayed the enforcement of the ACT and HDO rules to January 2027 and January 2026, respectively. It will be interesting to see whether a federal court issues a “stay” of revocation or not while the court case plays out. At that, the question will be: do states that follow the California standards try to forge ahead in the absence of a court decision.

From a broader perspective, while the congressional resolutions and state action provide temporary regulatory relief, the issue underscores a larger trend: the nation is grappling with how to balance environmental goals with the pragmatic realities of heavy industry and transportation. For its part, UCANE remains active in advocating for short- and long-term emissions strategies that are reasonable and realistic. Stay tuned for additional UCANE updates on its efforts to ensure that end-users of MHD trucks continue to have their voices heard.

Healey-Driscoll Administration Launches New Unemployment Insurance Technology System

The Healey-Driscoll Administration announced the launch of a new, modernized system for current and future claimants seeking unemployment insurance (UI) benefits in May. Known as the Employment Modernization Transformation (EMT) project, this new system replaces the Department of Unemployment Assistance’s (DUA) old UI Online system and introduces an enhanced customer service experience featuring increased accessibility, modernized technology, and enhanced tools for fraud prevention.

The new unemployment services system builds on the Healey-Driscoll Administration’s efforts to strengthen DUA’s operations and improve customer service for impacted workers and employers. Over the past year, DUA implemented a new call center platform, added staff capacity to significantly reduce call wait times, co-located DUA staff at MassHire career centers regionally, enhanced program integrity efforts to increase fraud prevention and detection, and improved DUA’s online presence.

Among the improvements implemented to the system according to a press release from the Executive Office of Labor and Workforce Development:

• Customer Service: An additional 140 agents were added to the call center leading up to the launch, helping claimants with call times now ranging between 5 to 10 minutes compared to more than 2 hours in January; claimants also now use new self-service options that are available 24 hours a day.
• Device Usage: More claimants are accessing the system through their mobile device (56 percent) compared to desktop (43 percent) or tablets (1 percent), highlighting the use of the new mobile feature
• Claimant Feedback: DUA has received an average claimant feedback rating of 4.5 out of 5, with benefit claim filing and weekly certifications receiving the highest satisfaction.
• Language Accessibility: More than 2,200 claimants have utilized the system in Spanish, also highlighting this new language access feature; certification by phone continues to be offered in English, Spanish, Portuguese, and Cantonese.

The EMT project is a multi-phased strategy to modernize DUA UI system. The first phase of the project launched September 2023 to provide employers and third-party administrators (TPAs) with improved functionality for managing unemployment services activities online. This latest phase focused on the claimant experience to deliver a transformational UI experience to the Commonwealth’s employers and residents to solely focus on timely and high-quality service delivery and eliminate inefficient, ineffective, or unnecessary business processes to provide better service to customers. The Healey-Driscoll Administration is also underway with the next phase of the EMT project, from unemployment to reemployment, focused on modernizing the state’s workforce system including new digital strategies and business process improvements led by the Department of Career Services and in support of the MassHire career center network statewide.

For more information about the new system, please visit mass.gov/unemploymentservices

Governor Healey Promotes Initiative Reducing Regulatory Hurdles

The Massachusetts Office of Consumer Affairs and Business Regulation (OCABR) announced that it had followed up on the Governor’s “State of the State” directive to reduce administrative and regulatory burdens. In doing so, OCABR announced that it had conducted its review to identify ways to make it easier to do business in Massachusetts and enhance the state’s economic competitiveness. The initiative, called Massachusetts Means Business, has resulted in cutting or amending one quarter of all regulations under the oversight of OCABR and its agencies.

Of note, the Divisions of Banks, Insurance, Occupational Licensure, Standards, and the Department of Telecommunications and Cable met with businesses and reviewed 150 sets of regulations. The focus was to eliminate outdated and duplicative requirements, repeal unnecessary and onerous barriers to business growth, and rescind regulations that stifle competition and hurt Massachusetts businesses, business owners and consumers. In particular, the Massachusetts Means Business initiative has initially led to: 

• Hoisting License Reforms. Updates to Division of Occupational Licensure (DOL) regulations will benefit 55,000 licensees. Changes will increase the workforce pool, allow exam waivers for those with nationally recognized credentials, and eliminate the need for new photographs for license renewal. Some of the specific proposals will remove the requirement that applicants communicate in the English language; allow examination waivers for individuals holding nationally recognized credentials; eliminate the requirement that new photographs and identification be provided for license renewal;  reduce limitations on unlicensed individuals obtaining temporary permits to operate small rental equipment by allowing two permits within a 30-day period and remove the requirement that inspection materials be kept with hoisting equipment.

·         Bank Licensing Reform. Updates to Division of Banks regulations will benefit 788 companies within the financial services industry. Changes include refining processes, reducing regulatory burdens and lessening confusion around new laws. 

·         Overhaul of Unit Pricing. Updates to Division of Standards regulations will benefit 15,000 grocery and retail stores. Changes will update unit price disclosure requirements that haven’t been adjusted since the 1990s to ease burden and cost of compliance and embrace new technologies. 

·         Insurance Licensing Reform. Updates to Division of Insurance regulations will benefit 1,400 licensed insurance companies and approximately 200,000 individual insurance producers. Changes include eliminating the requirement to submit paper filings or via computer disc and expediting the filing process. 

·         Streamlining Joint Regulations with the Department of Telecommunications and Cable (DTC) and Department of Public Utilities (DPU). Changes to rulemaking will benefit over 100 communication and electric companies and streamline the joint regulations that govern pole attachments in Massachusetts. 

As mentioned in a previous Construction Outlook magazine, the Healey-Driscoll Administration is also modernizing OCABR licensing systems to save time and costs, improve license management, eliminate paper processing, and increase transparency for licensees, consumers, and employees. Foremost among the initiative, the DOL is also actively executing a three-year capital project to create a single, modern system for licensing, permitting, and inspections, making these processes easier for users. The new system will launch first for Real Estate and Plumbing board licensees in June 2025. The project involves collaboration across the Executive Office of Economic Development, the Executive Office of Administration and Finance, and the Executive Office of Technology and Security Services (EOTSS) secretariats to replace several outdated technology platforms. 

Learn more about Massachusetts Means Business at: www.mass.gov/massmeansbusiness.  

Healey-Driscoll Administration Awards $3.1 Million to Prevent and Reduce Pollutants from Entering Our Waterbodies

It was a busy month for the Healey-Driscoll Administration as the MassDEP announced another round of grant awards under the nonpoint source grant program. In particular, the MassDEP announced that it had awarded $3.1 million in grants to support projects that prevent, control, or reduce nonpoint source (NPS) pollution in our waterbodies.

According to the MassDEP press release on the same, NPS pollution occurs when rainfall or melting snow picks up and carries away natural and human-made pollutants, such as fertilizers, herbicides, construction sediment, nutrients and bacteria from animal waste, and eventually deposits those pollutants into our lakes, rivers, wetlands, coastal waters, and ground waters. There are many types of NPS pollution that can impact our waterways. These grants help municipalities, tribal nations, regional planning agencies, and public and private entities address NPS pollution across Massachusetts.

The ten grants awarded are: 

Mashpee Wampanoag Tribe, Mashpee, MA ($700,000). This project will reduce persistent water quality degradation in Santuit Pond due to excessive in-pond nutrient loading by sequestering phosphorus over a 145-acre area of sediment where anoxia occurs most frequently.

Mystic River Watershed Association, Arlington, MA ($869,640). The Mystic River Watershed Association will take a strategic, watershed-based approach to construct a total of 65 infiltration trenches in six (6) municipalities in the Mystic River watershed, offering cost-effective phosphorus reduction in a highly urbanized setting.

Town of Monson ($203,965). This project will improve water quality and ecological conditions for Chicopee Brook by installing stormwater BMPs at Cushman Field and support improved landscape management at Veterans Field.  

Barnstable County Dept. of Health and Environment-Wastewater Division ($416,997). This project will install 25 urine diversion (UD) systems in nitrogen-impaired watersheds. The applicant will document actual nitrogen load reductions by watershed and generate performance data of UD systems to support the inclusion of UD as a general use nutrient management strategy.

Massachusetts Association of Conservation Districts, Westford, MA ($455,125). The Massachusetts Association of Conservation Districts will build on a recently completed federally funded project to engage farmers in the implementation of BMPs to reduce contaminant runoff to impaired waterbodies in Western Massachusetts.

City of Pittsfield ($151,944). The funds will support the implementation of the West Branch Housatonic River Watershed-Based Plan (WBP). This project will install a stormwater BMP as part of a newly designed community park in the West Side neighborhood in Pittsfield, addressing listed impairments for trash, debris, nitrogen and pathogens in the West Branch of the Housatonic River and enhance the environmental health of the local community.

Berkshire Regional Planning Commission (BRPC), Pittsfield, MA ($100,000)
Pittsfield, MA. Through this project, BRPC will conduct a regional NPS implementation project development via a Regional NPS Coordinator Program for Berkshire County. BRPC will carry out NPS-focused capacity-building work in and for local communities to change the perception of the rivers from liabilities to assets, and to meaningfully engender environmental stewardship.

Southeastern Regional Planning and Economic Development District (SRPEDD), Taunton, MA ($100,000). This project will facilitate regional watershed planning efforts to address nitrogen and other sources of NPS pollution that impact Buzzards Bay watershed communities in the SRPEDD regional planning area.

Martha’s Vineyard Commission ($100,000). This project will establish an island-wide communications network of local and regional water resource stakeholders, establish a Regional NPS Coordinator to participate in ongoing watershed-based planning, and establish an education and outreach program that will focus on engaging island youth as well as training volunteers for water quality sampling.

Geosyntec Consultants, Inc. ($22,252). This project will build on the success of the Massachusetts Watershed-Based Plan web-based tool (WBP Tool). The funds will provide technical and programmatic support to the MassDEP NPS Management Section in the Watershed Planning Program for the WBP Tool.

For more information about the variety of grants available for watersheds and water quality, please visit: https://www.mass.gov/info-details/grants-financial-assistance-watersheds-water-quality#overview.