June 2026 Legislative Update

Senate Passes FY27 Budget; Conference Committee Aims to Meet July 1 Target

In late May, the Massachusetts Senate approved its fiscal year 2027 (FY27) budget proposal, totaling approximately $63.37 billion. Over four days of debate, senators adopted 518 amendments, adding approximately $70.5 million in new spending to the Senate Ways & Means Committee’s budget recommendation. According to the Massachusetts Taxpayers Foundation (MTF), the Senate rejected 317 amendments and withdrew an additional 313 amendments during the deliberative process. The Senate's final spending plan is approximately $2.3 billion (3.8%) above FY26 spending levels, approximately $4.2 million above the Governor’s original proposal, and approximately $49.6 million below the House budget.

The Senate budget also included approximately 100 outside sections and continued the Legislature’s recent trend of incorporating limited policy language into the annual budget process. While the final Senate budget remains closely aligned with the Governor’s overall spending framework, it reflects the Senate’s priorities in areas such as education, housing, transportation, environmental programs, and local aid.

Of note for UCANE’s areas of interest, the Senate budget proposal provided:

• Level funding of $63.3 million for the Clean Water Trust’s contract assistance program.
• No funding included for the Commonwealth Sewer Rate Relief Fund. (Note: The House provided $1.5 million for this program.)
• $5.9 million for the Underground Storage Tank Petroleum Product Cleanup Fund administrative program.
• Approximately $51.7 million in funding for the Department of Environmental Protection (MassDEP).
  

UCANE, in addition to reviewing the over 1,100 budget amendments offered to the FY27 budget plan, the association weighed in with support on one of the proffered amendments (increasing the MassDEP’s administrative line-item) and in opposition to two amendments (applying prevailing wage to offsite fabrication and transparency in private construction).

In supporting an increase to the amendment increasing the MassDEP line-item, UCANE wrote that:

“With increased funding for its operating line-item (2200-0100), the MassDEP can do incredible work in maximizing the SRF program and address the many water infrastructure issues facing the Commonwealth. This not only benefits the Commonwealth but directly assists municipalities and their residents who rely on the MassDEP’s expertise in navigating the SRF process. From UCANE’s perspective, any increase in municipalities utilizing the SRF program means more construction work and, accordingly, the creation of more good paying jobs. As the Commonwealth tries to continue its economic growth in the light of softening revenues, programs that create job growth while improving our infrastructure are vitally important.” Note: The Senate adopted the amendment relative to increasing the MassDEP’s line-item.

In opposition to an amendment trying to apply prevailing wage to offsite fabrication, UCANE again joined with the Associated Builders and Contractors (ABC), Associated General Contractors, Massachusetts (AGCMA), Associated Industries of Massachusetts (AIM), Associated Subcontractors of Massachusetts (ASM), Construction Industries of Massachusetts (CIM), and the National Association of Industrial and Office Properties, Massachusetts (NAIOPMA) in successfully defeating the amendment. Proponents of the measure continue to offer their language to extend the prevailing wage law across state lines for certain items fabricated offsite in the various omnibus bills being considered by the Massachusetts legislature.

Finally, UCANE offered written testimony in opposition to an amendment that would require private utility companies to report on the process and payments made to contractors for work done on behalf of the utilities. In opposition to the same, UCANE wrote:

“While framed as a “transparency” measure, the proposal does not address any demonstrated problem involving public safety, consumer protection, or misuse of ratepayer funds. Instead, it inserts the Commonwealth into the private contracting decisions of regulated utilities and their construction partners, despite the fact that these companies already operate under extensive oversight by the Massachusetts Department of Public Utilities and are required to manage costs prudently in the interest of ratepayers. Further, the amendment would undermine the flexibility utilities may need to select contractors based on a broad range of legitimate considerations, including technical expertise, safety record, specialized equipment, responsiveness during emergencies, workforce availability, and past performance. Lowest price is only one component of a prudent contractor selection process. Utilities frequently rely on contractors with whom they have longstanding relationships and proven track records in performing highly specialized and safety-sensitive work on critical infrastructure.” (Note: the amendment was not adopted as part of the final Senate budget.)

The Massachusetts Senate and Massachusetts House of Representatives have now formed a six-person Conference Committee to reconcile differences between the House and Senate versions before the July 1 deadline marking the start of FY27.

For more details on the Senate FY27 budget, visit: https://malegislature.gov/Budget/SenateBudget.

MassDEP Recognizes and Honors Public Water Systems and Operators on 40^th Drinking Water Awards Day

The Massachusetts Department of Environmental Protection (MassDEP) recently celebrated National Drinking Water Week by hosting its 40th annual Drinking Water Awards Day, recognizing more than 200 public water systems and operators for their commitment to delivering safe, reliable drinking water across the Commonwealth. Held in Shirley, the event honored 42 water systems, four operators, two municipalities, and two childcare advocates for excellence in water quality, conservation, and public health protection. The MassDEP also presented a Special Recognition Award to former Drinking Water Program Director Yvette DePeiza in acknowledgment of her exceptional leadership and more than 46 years of service to the Commonwealth’s drinking water programs.

The awards highlighted outstanding achievements across a diverse range of public water systems, including non-transient non-community systems, small community systems, medium and large community systems, and consecutive systems. Several communities were also recognized as Consistent Performers for earning awards in three consecutive years. In addition, Concord and Georgetown received Water Conservation Awards for their efforts to promote efficient water use and sustainable resource management. These recognitions underscore the importance of proactive stewardship and continuous improvement in maintaining high-quality drinking water services.

The MassDEP also recognized municipalities that have successfully integrated energy efficiency and environmental sustainability into their water infrastructure operations. The Towns of Orleans and Essex received Energy Conservation Awards for projects that modernized critical equipment, reduced energy consumption, lowered operating costs, and decreased carbon emissions. The STAR L Award was presented to the Amherst Department of Public Works Water Division for its leadership in identifying and addressing potential sources of lead in schools, while childcare advocates Claudia Vega and Gloria Jackson were honored for their efforts to reduce lead exposure risks in childcare facilities through participation in the Water-Smart Program. Regional recognition awards highlighted water systems and operators that have demonstrated exceptional leadership in addressing complex infrastructure and water quality challenges.

Honorees also included East Brookfield Water Department for significant investments in treatment and system reliability, Bedford Water Department for exemplary regulatory compliance and preparedness, Middleborough Water Department for its extensive PFAS response efforts and regional cooperation, and the Springfield Water and Sewer Commission for advancing major treatment upgrades to ensure long-term drinking water safety. Distinguished Operator Awards were presented to Thomas Cutler, Paul Provost, Michael and James Poitras, and Richard Kilhart in recognition of their outstanding professionalism and dedication to protecting public health through effective water system management.

To find more information about awardees of the 2026 Public Water System Awards, please visit: https://www.mass.gov/lists/communications-to-public-water-suppliers.

EPA Announces $18.6 Million for Massachusetts to Address PFAS in Drinking Water

According to a press release issued by the agency, the United States Environmental Protection Agency (EPA) announced $18.6 million in new Emerging Contaminants in Small or Disadvantaged Communities (EC-SDC) grant funding to address PFAS and emerging contaminants in Massachusetts communities that need it most.

The EC-SDC grant program is a $1 billion national investment that helps communities address PFAS and other emerging contaminants. In Massachusetts, $18,607,000 is available for communities, drinking water systems, and private well owners to help with testing, planning, and infrastructure projects addressing PFAS and other emerging contaminants included on EPA’s Contaminant Candidate Lists (e.g., manganese, perchlorate, 1,4‑dioxane).

With this grant allotment, the agency has made $5 billion in EC-SDC funding available through this program over five years.  More than $6.5 billion in low-interest financing is currently available through EPA's Water Infrastructure Finance and Innovation Act (WIFIA) Loan program, which can also be used to address PFAS. Sustained investment of this scale helps drive down the per-system cost of treatment, generates real-world performance data that better informs utility decision-making, accelerates innovation in destruction and disposal technologies, and helps mitigate PFAS across the many forms in which it appears in source water.

Additionally, EPA’s new PFAS OUTreach—or PFAS OUT—initiative is accelerating progress in addressing PFAS in drinking water. This new program proactively works with communities and water systems to reduce exposure to per-fluorooctanoic acid (PFOA) and per-fluorooctane sulfonic acid (PFOS) in drinking water.  Recognizing that small, rural, and disadvantaged water systems often have fewer resources, PFAS OUT is specifically designed to ensure these communities are not left behind. PFAS OUT will help every drinking water system dealing with PFOA or PFOS to effectively understand the challenge and reduce exposure as soon as possible while positioning them for successful compliance with enforceable drinking water standards. 

Within the EPA’s press release on this issue, the agency highlighted its multifaceted approach to reducing exposure to PFAS in drinking water through two proposed rules for public comment that are relative to the National Primary Drinking Water Standards for PFOA and PFOS. The proposed rules may be reviewed at: https://www.epa.gov/sdwa/proposed-pfas-rescission-rule and https://www.epa.gov/sdwa/proposed-pfoa-and-pfos-compliance-extension-rule.

For more information on the Emerging Contaminants – Small or Disadvantaged Communities grant program information, please visit: https://www.epa.gov/dwcapacity/emerging-contaminants-ec-small-or-disadvantaged-communities-grant-sdc.

News in Brief

Massachusetts Gains 8,500 Jobs in April; Unemployment Rate Remains at 4.7%. The Executive Office of Labor and Workforce Development (EOLWD) released Massachusetts unemployment and job estimates for April 2026, with preliminary data indicating that payroll jobs increased by 8,500 for the month, following a revised increase of 7,200 jobs in March. Massachusetts has added more than 21,600 payroll jobs, including 19,600 private sector jobs, since September and has outpaced the country over the past six months. Preliminary data also shows the April unemployment rate remained at 4.7% and labor force participation rate decreased slightly to 65.6%. BLS categories with the strongest growth month-over-month for Massachusetts employment in April includes Construction (+3,100), Private Education and Health Services (+1,900), and Professional and Business Services (+1,400) gained jobs. May unemployment and job estimates are scheduled to be released on Monday, June 22, 2026.

Boston Hires New Parks and Recreation Commissioner. Boston Mayor Michelle Wu has appointed Diana Fernandez Bibeau as Boston’s new Commissioner of Parks and Recreation and Deputy Chief of Open Space, effective June 1. Commissioner Fernandez Bibeau brings more than 15 years of experience in landscape architecture, urban design, and public-sector leadership, most recently serving as the City’s Deputy Chief of Urban Design. In her new role, she will oversee Boston’s park system, including more than 2,200 acres of protected open space and over 300 employees, while also coordinating citywide open space policy and climate resilience initiatives. In a press release announcing the appointment, city leaders praised her track record advancing equitable, sustainable, and community-focused design, while Commissioner Fernandez Bibeau emphasized her commitment to ensuring Boston’s parks and public spaces remain welcoming, resilient, and accessible for all residents. Ms. Fernandez Bibeau, who resides in West Roxbury, is a mother of three school aged children with her husband, Mr. Devin Bibeau.

Revenue Continues to Exceed Benchmarks. Massachusetts tax collections remained strong in May 2026, with preliminary revenues totaling $2.767 billion, an increase of $140 million (5.3%) over May 2025 and $231 million (9.1%) above benchmark expectations. Year-to-date collections reached $40.809 billion, exceeding the prior fiscal year by $1.663 billion (4.2%) and running $1.823 billion (4.7%) ahead of benchmark. Growth was driven primarily by higher withholding and non-withholding income tax collections, supported by stronger finance and insurance sector payrolls, increased estimated tax payments, and lower refund outflows, as well as modest gains in sales tax receipts. These increases were partially offset by a significant decline in corporate and business tax collections due to higher refunds and lower estimated payments. Income tax collections totaled $1.733 billion, up 11.7% from May 2025, while sales tax collections increased 2.0% to $796 million. DOR noted that May is typically a mid-sized revenue month, with collections influenced by the tail end of the individual income tax filing season and related refund activity.

Healey Administration Awards Targeted Ipswich PFAS Grant Funding. In May, the Healey-Driscoll Administration awarded nearly $900,000 in grants to five communities within the Ipswich River Basin to improve drinking water quality, strengthen water infrastructure, and reduce contamination from PFAS. Administered by the MassDEP, the region-specific funding will support projects in Lynn, Peabody, Ipswich, and Hamilton/Wenham, including leak detection efforts to reduce water loss, testing and design of PFAS treatment technologies, and advancement of a new water treatment plant. State officials emphasized that the investments will help ensure long-term access to clean, safe drinking water while protecting public health and preserving the Ipswich River ecosystem for future generations. More information about these grants may be found at: https://www.mass.gov/info-details/water-management-act-grant-programs-for-public-water-suppliers#ipswich-water-supply-and-pfas-grant.