Rick Dimino

The ink is now dry on both the Massachusetts state budget and the massive federal reconciliation bill – two spending plans that, unfortunately, work against each other in many ways, including for transportation.

The net impact for Massachusetts will include deep cuts to federally funded programs like health care, food assistance and infrastructure. But while the federal government pulls back, state government and state resources are stepping up.

More than two years ago, Gov. Maura Healey took office facing a crisis at the MBTA, the Biden administration awarding large infrastructure grants throughout the nation and the start of the new Fair Share surtax.

Today, the landscape is much different.

Landscape Much Changed

Thanks to the governor’s leadership with increased state funding and the fantastic appointment of General Manager Phil Eng, the MBTA is in far better shape. Massachusetts succeeded in winning major federal grants in 2024 – including $1.4 billion to rebuild the Sagamore Bridge and $335 million for the I-90 Allston Multimodal Project. Fair share dollars are saving the MBTA and transportation needs from difficult cuts.

This year’s state budget includes a new chapter for Fair Share, through a major expansion of new spending on transportation infrastructure.

Using some of the surtax dollars to support a financing plan is the foundation of Gov. Healey’s 10-year, $8 billion transportation investment proposal. It will fund upgrades for the MBTA, MassDOT’s road and bridge programs, and support municipal transportation and culvert repairs.

It is also a strategy that does not depend on federal approvals or financial aid, so Massachusetts can now advance worthy projects throughout the state – without raising new taxes – and fortunately this will help offset the looming federal cuts.

A Temporary Setback in Allston

The Trump administration’s “One Big Beautiful Bill,” included one potential obstacle for Massachusetts: It rescinded a major federal funding source for the I-90 Allston Multimodal project.

This is a real setback for the state officials, community advocates and the business community who are united in support of this once-in-a-generation opportunity.

The project would remove a structurally deficient portion of an elevated viaduct along the Mass. Pike, straighten the highway lanes’ place the highway lanes at ground level. This will unlock new land for housing and commercial development along the Charles River and allow for a future West Station transit station that can serve this new neighborhood.

It is the ideal infrastructure project to grow the Greater Boston economy for the 21st century.

The 2024 federal grant was awarded for the project came through the “Neighborhood Access & Equity” program created by President Joe Biden’s Inflation Reduction Act. This made it a target for Republicans in Congress looking to cancel equity-based federal programs.

The loss of this one federal grant will sting in Massachusetts, but it will not change the fundamental value and potential economic benefits of this project, nor will it diminish its importance to Greater Boston and the people in Allston.

Fortunately, the governor’s Fair Share financing plan intends to contribute $615 million to support the I-90 project.

While the overall I-90 Allston budget will need further revision, the project’s benefits remain unchanged, and its broad coalition of support remains committed to seeing it move forward.

MassDOT is scheduled to finish the design phase environmental permitting over the next year. During this time, a revised budget will be possible. Also, it is certainly reasonable to believe a future Congress or a future president can restore this federal grant as part of the next federal transportation funding bill.

 Focus on Transpo Task Force Plan

In Massachusetts, Fair Share funding has been crucial in stabilizing the MBTA and can support transformative projects like I-90 Allston. However, it is concerning that the current state budget moves away from the original 50/50 Fair Share promise and allocates only 30 percent to transportation.

Gov. Healey’s Transportation Funding Task Force renewed the call for an even split between education and transportation, recognizing the value in both categories, but emphasizing the need to avoid competition between the two. Still, the disruption and uncertainty in Washington led to an imbalanced use of the surtax funds this year.

In the next few years, we will need to monitor the Fair Share distribution closely, as there could be pressure to reduce the transportation portion even further, if federal cuts to education and safety net programs continue.

Overall, we are seeing the positive results of Fair Share revenue on transportation through improved MBTA service, better support for regional transit and the momentum for doing transformational projects.

We know the needs for transportation dollars are vast, but we need stay focused on providing transportation services that are vital to sustaining our economic growth in Greater Boston and across the entire commonwealth. That’s why we must keep moving forward on the policies in Massachusetts that are working and the governor initiated – despite the federal government’s opposition to Massachusetts’ priorities, values and transportation projects.

Rick Dimino is president emeritus of A Better City and a member of the MassDOT Board of Directors.