Five-Year Plan Creates MBTA Communities Catalyst Fund to support municipalities embracing a pro-housing agenda in compliance with MBTA Communities Law

BOSTON - The Healey-Driscoll Administration today released its Fiscal Year 2025-2029 Capital Investment Plan (CIP), funding $15.6 billion in projects and programs over the next five years, with a focus on housing, economic development, infrastructure and climate resiliency. 

The capital plan includes more than $3.1 billion in Fiscal Year 2025 – an increase of $212 million from Fiscal Year 2024 – to build on the progress the administration made in Fiscal Year 2024, with a focus on using new growth in the CIP to lower the cost of housing and enhance the state’s economic competitiveness. This includes the creation of the MBTA Communities Catalyst Fund for communities that are in compliance with the MBTA Communities Law by providing support for infrastructure and housing projects.

“Our capital plan is one of the most effective tools we have as an administration to make Massachusetts more affordable, competitive, and equitable for everyone,” said?Governor Maura Healey. “These have been our priorities since taking office, and they are reflected in the significant new resources we are directing to housing production and preservation, the climatetech industry, decarbonization and climate resiliency. We’re also keeping our commitment to established and effective economic development programs and dedicating crucial resources to updating infrastructure across the state.”??

“This Capital Investment Plan is another example of how our administration is committed to improving quality of life in all of our communities, from the coast to the Berkshires,” said?Lieutenant Governor Kim Driscoll. “From the continuation of the essential Chapter 90 and MassWorks programs and climate-focused municipal support to a new pilot to assist and recognize MBTA communities working with us to plan and develop new housing, we’re putting money behind the programs that work and make the lives of our residents better.”??

Last year, the Healey-Driscoll Administration stood up the new Executive Office of Housing and Livable Communities and, as part of last year’s CIP, created a new HousingWorks program to advance the mission of the agency. This capital plan continues these efforts through a major investment in housing, with $2 billion programmed over the next five years, including $400 million in Fiscal Year 2025 (FY25) to produce or preserve 5,300 housing units and make significant investments in maintenance projects across the state’s 43,000-unit public housing portfolio. This investment represents a significant next step in ramping up investments in housing and furthering the administration’s firm commitment to drive the acceleration of housing production across the state.  

As part of this investment, the CIP dedicates $108 million to continue HousingWorks, an $11 million increase. In total, the Healey-Driscoll Administration has increased capital spending on housing by 53 percent over the last two years. 

The capital plan also reflects the administration’s full commitment to economic competitiveness and meeting the state’s climate goals.

Through FY29, the plan invests nearly $1.4 billion in the Executive Office of Economic Development, including more than $23 million in new capital spending in FY25 to expand vital tech-focused sectors and bring new jobs and development to Massachusetts. This includes $10 million for climatetech to enable the administration to hit the ground running with some of the ideas put forth in the economic development plan published last December entitled “Team Massachusetts: Leading Future Generations.”

Over five years, the capital plan would also put $1.56 billion into programs designed to protect and preserve the environment and prepare the state and its cities and towns to confront the effects of climate change. That includes a doubling of support to $24 million in FY25 for the ResilientMass Plan – the state’s blueprint for ensuring Massachusetts is prepared to withstand, recover and adapt to natural hazard events.

The capital plan announced today also provides essential resources to preserve and modernize state infrastructure, invest in cities and towns, and make government more effective for its residents. That includes investing in deferred maintenance in public buildings, continuing to support critical new construction and renovation projects at courthouses in Springfield, Quincy, Lynn, and Framingham and upholding the administration’s financial commitment to replace the bridges to Cape Cod.

“This capital plan is bold in its investments while still being affordable and fiscally prudent,” said?Secretary for Administration and Finance Matthew J.?Gorzkowicz. “We know the need and demand on our available resources is great and we are proud of how this plan balances those constraints against the imperative to advance important projects, drive our housing and economic development agenda and invest thoughtfully in the state’s people, its economy, and its future.”

Notable investments in the FY25–FY29 CIP include:??

Housing Production and Preservation

• The FY25–FY29 Capital Investment Plan represents a historic investment in housing, with nearly $2 billion committed to help finance the construction of hundreds of new, affordable housing opportunities each year. The FY25 funding of $399 million represents a 30 percent increase over FY24, supporting the state’s continued commitment to ramping up investments in housing 
• $108 million in FY25 for the second year of HousingWorks – a competitive and flexible grant program for housing development, preservation, and rehabilitation
• $157 million for repairs and upgrades to the state’s public housing portfolio, an increase of 30 percent
• $57 million for the Affordable Housing Trust Fund for the creation of more than 1,000?affordable units for low-income families
• $29 million for the Housing Innovations Fund, an increase of $14 million over the FY24 CIP, for grants to create 500+ units of innovative and alternative forms of rental housing
• $15 million over three years for the MBTA Communities Catalyst Fund pilot to reward communities in compliance with Section 3A of MGL c. 40A. by offering support for infrastructure projects and planning for housing, housing development, and acquisition of properties to develop housing units
• $10 million in FY25 for the Momentum Fund to support large scale, mixed-income multifamily development in a time where rising construction costs and high interest rates challenge the financial viability of these critical projects.

Maintaining Competitiveness and Equity

• Through FY29, the Executive Office of Economic Development will invest $1.36 billion to foster opportunity across all regions of Massachusetts
• An additional $288.5 million of grant funding for municipalities outside of EOED’s portfolio to support economic growth through community enrichment programming
• In FY25, $148 million to strengthen communities across the state, including grant opportunities available through the Community One Stop for Growth application portal. This includes MassWorks
• $10 million to the Massachusetts Clean Energy Center for capital grants and initiatives that support research & development, manufacturing, commercialization, and deployment of climate-related technologies
• $7 million for the Mass Impact fund to supports large, transformational projects that have the potential to yield significant economic impact
• $40 million for the Life Sciences Capital Program
• $16.7 million for the Tech R&D and Innovation Fund to promote cluster development of high-tech industries including robotics and AI.

Protecting and Preserving Our Assets

• $268 million to leverage federal dollars and support the financing of the reconstruction of the Sagamore and Bourne bridges
• $291.2 million over five years to support the renovation and transition from the Lemuel Shattuck Hospital to the East Newton Pavilion.
• $309.1 million over five years to support decarbonization efforts across state-owned properties
• Continued support for construction of rehabilitation of courthouse in Springfield, Quincy, Lynn and Framingham
• $1.02 billion over five years for Chapter 90
• $75 million over five years for Municipal Small Bridge program

Climate and Resiliency

• $600 million in state-funded capital investments in FY25-29 that reduce emissions through electrification, creating more sustainable transportation options, and building resilient infrastructure prepared to withstand the impacts of a changing climate.
• $303 million to EEA’s six agencies and the Clean Water Trust (CWT) in addition to climate-focused investments woven throughout the FY25-FY29 CIP.
• $4.5 million over five years for the study and implementation of the electrification of the state’s fleet of vehicles
• $25.3 million over five years for National Electric Vehicle Infrastructure (NEVI) spending to improve electrification infrastructure
• $205 million in FY25 ($1.02 billion over five years) for Chapter 90 to fund municipal projects, including work on pavement, local bottleneck reduction, and bike/pedestrian infrastructure
• $41 million for sustainability and resiliency projects in public and affordable housing units

To read the Governor’s message, Capital Investment Plan summary and policy briefs click here.