MA's new budget eliminates tenant fees
Although the new budget anticipates adjustments, it is considered a historic step because it was delivered before the start of the fiscal year.
For the first time since 2016, Massachusetts lawmakers sent Governor Maura Healey the $1.4T billion state budget for fiscal year 2026 on time. The plan, which was approved Monday, introduces key changes to tax policy and tenant protections, although Healey still has a 10-day deadline to review it.
One of the most notable points is a new regulation requiring the party hiring the residential broker (usually the landlord) to pay their fees, rather than passing them on to tenants, as was customary in the state. Massachusetts was the last state where this burden systematically fell on tenants.
“It’s a long-awaited victory for tenants, especially those who move frequently,” said Carolyn Chou, director of Homes for All Mass. “This reform could save more than $10,000 over a decade for those forced to relocate multiple times.”
Millionaire tax
The budget increases the use of the “millionaire tax” — a 4% surcharge on incomes above $1 million — toallocating $2.4 billion to operating expenses, Although it was originally approved to fund education and transportation.
“Increasing our reliance on the million-dollar tax during a time of economic uncertainty could be a risky bet,” warned Doug Howgate, president of the Massachusetts Taxpayers Foundation.
Fiscal adjustments and interim budget in the face of economic uncertainty
The budget reduces spending by 4Q1 billion compared to Healey's proposal and by 4Q5 billion compared to the House and Senate's initial plans, seeking stability in the face of potential fiscal strain.
In addition, an interim budget of $7.5 billion was approved to ensure the state's operations until the end of July, while the governor reviews the final proposal.
"I wouldn't anticipate significant disruptions. The important thing is that there is political will to reach an agreement in a timely manner," Howgate added.
Advocates see this proposal as a significant step forward on key social issues and a sign of fiscal responsibility in the face of national economic uncertainty, exacerbated by federal cuts proposed by former President Donald Trump.
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