Overview
Governor Healey signed Massachusetts' $60.9B FY26 budget into law on July 4th. The Administration vetoed $130M from the Legislature's final Conference Committee budget. Overall, however, investments in CLM's priority budget line items were maintained. With federal spending cuts coming down the pike, this state budget is meant to be fiscally responsible yet still responsive to the critical children and family needs. Many key children and family services line items received funding at just about FY25-level amounts and some differences are highlighted below.
Administrative Reductions
Most of the Governor's spending vetoes are reasoned to affect overhead and right-sizing, while maintaining direct care services. For example, a reduction to the FRCs operational line item (4800-0051) by $500,000 is said to cut administrative support from the Executive Office of Health and Human Services which the Department of Children and Families' capacity can handle. Other reductions of approximately $5M, which aren't expected to jeopardize services include:
- Family Resource Centers (4800-0200): $5.8M lower (v. FY25)
- Clinical Support Services Operations (4800-0015): $4.7M lower (v. FY25)
- Foster Care Review Services (4800-0025): $4.7M lower (v. FY25)
The true effects are of such changes will be better understood in time.
Greater Decreases
Additional priority line items that were reduced more significantly include:
- Family Support and Stabilization (4800-0040): down $15M (v. FY25)
- Children and Adolescent Mental Health Services (5042-5000): down $17M (v. FY25)
- Congregate Care (4800-1100): down $32M (v. FY25)
CLM's response will include coordinating a legislative briefing on Family Support and Stabilization, organizing with partners behind increased mental health investments, and developing a white paper on Congregate Care.
Increases
Meanwhile we saw greater increases in a few line items such as:
- DCF/DTA Childcare (3000-3060): up $91M (v. FY25).
- Children's Behavioral Health Initiative (4000-0950): up $16M (v. FY25).
- Child Care Supports (1596-2452): up $33M (v. FY25 transferred line item 1596-2434).
- Social Workers for Case Management (4800-1100): up $22M (v. FY25).
- BAY-CASH (within 4000-0007 - Housing and Supportive Services for Unaccompanied Homeless Youth): awarded $100K to provide direct cash assistance to unaccompanied homeless youth.
However, there are still significant concerns, even in some of these and related line items, such as an extensive waitlist for Income-Eligible Early Education and Care Programs (associated with Child Care Supports) and behavioral health funding.
Inclusion of Legislative Language
Great news is that the budget includes the language of two bills supported by CLM:
- "An Act Protecting Benefits Owed to Foster Children" (S.105/H.227) language to codify the preservation of children's Social Security Benefits.
- The "Behavioral Health Advisory Commission" bill which names numerous members including CLM and other partners and calls for a June 2026 report detailing recommendations for improving access to behavioral health services for children and families.
Coalition Advocacy
Three updates include:
- Lift Our Kids Out of Deep Poverty: funding for Transitional Aid to Families with Dependent Children (TAFDC) and Emergency Aid to the Elderly, Disabled and Children (EAEDC) won't allow for increased cash assistance, but sustains increases that became effective in April 2025.
- Workforce Rates: CLM continues to be actively engaged advocating with partners for increased funding for human services workforce pay rates as well. Chapter 257 line item 1599-6903 was funded at $207M, which would maintain rates at the 53rd percentile of the BLS benchmark (about $100M less than targeted).
- Special Education Circuit Breaker: CLM is also advocating in a coalition for sufficient funding for Special Education Circuit Breaker Reimbursement line item 7061-0012 which was funded at $532M while $648M is needed.
Federal Cuts
The federal budget, also signed into law on July 4, significantly cut governmental support, such as for Medicaid and the Supplemental Nutrition Assistance Program (SNAP). Forecasts estimate that in Massachusetts approximately 300,000 children will lose health coverage and 150,000 children will lose some or all of their SNAP benefits.
Conclusion
CLM will remain vigilant about the impacts of the state and federal funding levels on children and family services. Check out CLM's Budget Table for more comparisons here.