Executive Summary A Letter from the Governor

Today, we are proud to release the Healey-Driscoll Administration's second, five-year capital plan, which calls for funding more than $3.1 billion in Fiscal Year 2025 toward some of our most critical needs and sets Massachusetts on a path to invest nearly $15.6 billion over the next five years for the future of our state.

This capital plan builds on the progress we made in Fiscal Year 2024 when we directed money toward critical projects across Massachusetts. Whether it's MassWorks and HousingWorks - two successful grant programs providing capital funds for public infrastructure and housing development - or a new state-of-the-art soldiers' home for our veterans, we continue to make historic investments in our communities.

Since day one, our administration has been focused on improving our state's competitiveness, affordability, and equity. Massachusetts has many strengths to celebrate, and yet we also know that the need across our communities is great. Our infrastructure needs care and attention. Other states are competing for our businesses and jobs. And the next generation of graduates is considering where to put down roots to build their families and careers.

We must capitalize on our strengths and confront the challenges before us head on. That means doing what we can to grow our leading life sciences and innovation economy and delivering on the promise of climatetech. It means building more housing and investing in the affordable housing stock we already have. And it means doing what we must to meet our climate goals and ensure that, whether we are building new or renovating existing assets, we are reducing emissions and preparing for the effects of climate change.

Our administration's FY2025-FY2029 Capital Investment Plan (CIP) makes hundreds of these purposeful investments.

This capital plan reflects an increase of $212 million in Fiscal Vear 2025, making available more than $3.1 billion in the first year of the updated plan, while also remaining affordable and fiscally prudent.

Housing development remains one of the top priorities of this administration. That is why we are providing record levels of capital funding for housing, increasing the investment capacity of the Executive Office of Housing and Livable Communities by nearly 30 percent in Fiscal Year 2025 - 52 percent over the past two years -- for programs that we know will make a difference. With this capital plan, we project that more than 5,300 housing units will be produced or preserved and we will make significant investments in maintenance projects across the state's 43,000-unit public housing portfolio.

We are also supporting the implementation of our administration's economic development plan - Team Massachusetts: Leading Future Generations. We do this by continuing to invest in state and municipal infrastructure through programs like MassWorks while also expanding our support for vital tech-focused sectors of the economy with $23 million in new capital spending in areas like climatetech. And this is just a down payment.

As we work with the Legislature to pass important housing and economic development bond legislation, the FY25-FY29 CIP is designed to ensure that the administration doesn't lose any time putting those proposal into action when that legislation passes.

This capital plan also reflects our administration's full commitment to meeting our climate goals. In Fiscal Year 2025, we are doubling the state's investment for implementation of the new ResilientMass Hazard Mitigation plan with a $24 million annual investment. The plan also calls for continued spending dedicated to the Municipal Vulnerability Preparedness program, dams and seawalls, and land protection.

And we remain committed to projects like the construction of a new justice center in Springfield and the multi-year commitment to financing a new bridge to Cape Cod.

We also know that the reliability and quality of our transportation network is central to our future success as a state. That's why this plan puts more than $1 billion over the next five years into Chapter 90 and other municipal aid programs to maintain and improve local infrastructure, including bike and pedestrian infrastructure. It reflects the commitment we've made to

replacing the bridges to Cape Cod, puts nearly $1.2 billion over the next five years to other bridges around the state, and continues to invest in necessary electric vehicle infrastructure.

And while we celebrate all that this capital plan will accomplish, we must also acknowledge that it required choices to ensure that it will remain both affordable for the taxpayers and fiscally sustainable over the coming years as we put our heads down and work to advance these important projects.

We would like to thank the people across Massachusetts whose input and advocacy helped us learn and develop this plan and look forward to making the promise of this blueprint a reality.