Missed Opportunity: Analysis of the House FY25 Supplemental & FY26 Budget Proposals
Last week, the House Ways and Means Committee released its version of the Innovation and Capital Fund supplemental budget, followed by its FY 2026 budget proposal. Together, these budgets allocate more than $3.3 billion in Fair Share revenues. However, only 8%—just $262 million—is directed toward public higher education, falling far short of the voter mandate to expand access to affordable, high-quality public education.
While we commend individual investments, these proposals represent a significant step back from recent progress. At a time when enrollment is climbing and student needs are intensifying, this level of funding will not sustain the gains achieved through programs like MassReconnect and MassEducate.
Budget-by-Budget Analysis
FY25 Supplemental Budget (Innovation and Capital Fund)
We appreciate the proposed $20 million allocation to the Endowment Match program using excess FY25 Fair Share revenues. This long-term investment supports institutional sustainability and demonstrates a commitment to innovation. However, it represents just 2% of the $1.28 billion in excess surtax revenues—a missed opportunity to make a more transformative impact.
Distribution of Fair Share Revenue Allocation Over Time and By Sector
FY26 General Appropriations Act
The House’s FY 26 budget proposal allocates just 12% of projected Fair Share revenues to public higher education, well below the 25% benchmark recommended by the Board of Higher Education. This stark underinvestment represents a missed opportunity to fulfill the constitutional intent of the Fair Share Amendment, which calls for expanding access to affordable public colleges and universities.
Compared to the Governor’s FY 26 budget, the House proposal is less generous—allocating approximately 2% less overall to public higher education. This difference stems largely from the House’s decision not to include the Governor’s proposed $125 million in capital funding for public higher education. And when measured against the FY 25 General Appropriations Act, the House’s proposal would barely keep pace with inflation, amounting to real-dollar level funding.
A closer look reveals stagnant support across key areas. Financial aid for students would see a 3% reduction, despite escalating college costs and rising student need. While other areas—such as institutional operations and programmatic funding—would receive modest increases, they are insufficient to respond to growing enrollment and evolving student demands.
One of the most concerning elements is the ongoing underfunding of the Commonwealth’s flagship need-based aid program—the Massachusetts State Scholarship (line item 7070‑0065). Despite steady growth in tuition, fees, and living expenses, the program remains near its FY 23 funding level of $175 million. Had it simply kept pace with inflation, the line item would approach $185 million in FY 26. This erosion in purchasing power directly impacts low-income students, increasing their out-of-pocket costs and undermining efforts to ensure equitable access and completion.
At a time when public higher education is serving more students with greater needs, this proposal falls short of the sustained, equitable investment required to ensure affordability, student success, and institutional resilience.
Higher Education Line Item Appropriations in the General Budget Since FY22, Unadjusted for Inflation
One of the most concerning elements is the continued underfunding of the state’s flagship need-based grant program—the Massachusetts State Scholarship (line item 7070‑0065). Despite rising tuition, fees, and living costs, this program remains near its FY 23 funding level of $175 million. Had the appropriation merely kept pace with general inflation and escalating college costs, the line item would approach $185 million in FY 26. Instead, level funding continues to erode the grant’s purchasing power, forcing low-income students to shoulder increasing out-of-pocket costs, and undermining the goal of equitable access.
We do commend the proposed $10 million investment in UMass SUCCESS programs, introduced under a new line item. This funding will provide essential support to first-generation and low-income students across the UMass system. However, this increase does not extend to the community colleges, where the need is most acute. Enrollment at these institutions has surged by 22% since 2023, largely driven by the success of MassReconnect and MassEducate. Yet, their SUCCESS programs continue to receive $14 million—slightly below last year’s allocation of $14.7 million. In the face of such rapidly growing student populations, flat funding limits community colleges’ ability to scale support services and fully meet the needs of the very students they’ve worked so hard to bring through their doors.
Increasing access is only the first step. Ensuring students can persist and complete their degrees requires sustained, meaningful investment in financial aid and wraparound services. Without that commitment, the promise of recent policy initiatives risks going unfulfilled.
Recommendations
To fulfill the promise of the Fair Share Amendment and ensure meaningful student success, we urge the Legislature to:
Dedicate at least 25% of all Fair Share revenues to public higher education, consistent with the Board of Higher Education’s recommendation. Read our recent Analysis of Fair Share allocation patterns HERE and our op-ed on the urgent need to strengthen higher education in an era of federal instability.
Double need-based stipends:
From $2,400 to $4,000 at community colleges
From $1,200 to $4,000 at four-year campuses
With a long-term goal of achieving parity with the Pell Grant
Expand evidence-based student success programs, including ASAP/ACE-style models, across all public institutions.
Align operating funding with enrollment growth and equity, particularly for community colleges serving Massachusetts’ most underserved students.
Investing in higher education is not optional—it is both an economic and moral imperative. Every additional dollar returns dividends in workforce readiness, economic mobility, and long-term state prosperity.
We look forward to working with the Legislature, Administration, and Department of Higher Education to ensure that the final FY26 budget upholds the constitutional intent of the Fair Share Amendment and helps build an inclusive, affordable, and thriving public higher education system for all Massachusetts residents.