Governor Healey Releases FY26 State Budget Proposal

January 23, 2025

Governor Healey’s Fiscal Year 2026 (FY26) or House 1 (H1) budget recommendation was released yesterday afternoon. The Executive Office of Health and Human Services (EOHHS) Secretary Kate Walsh hosted a stakeholder call with 900 plus participants at 4 PM to provide an overview of the budget proposal.

The proposed FY26 state budget totals $61.97 billion, with EOHHS accounting for $33.3 billion of the overall spending. The Department of Developmental Services (DDS) is allocated $3.28 billion, which maintains the historic $388.4 million in Chapter 257 rate increases for FY25.

During the presentation, Dan Shark, Assistant Secretary for Administration and Finance, outlined their plan for DDS services which included:

  • Ending the current practice of funding vacancies in Adult Long-Term Residential (ALTR) programs, -$30M
  • Consolidating group homes to more efficiently utilize existing residential capacity, -$19.7M

ADDP has already met with EOHHS and DDS to express concerns about these targeted reductions. Additionally, we are working with The Collaborative to review our overall budget strategy for FY26.

A revised budget request will be shared with members prior to ADDP’s Legislative Budget Forum on Wednesday, February 12, at the State House.

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