The MBTA received $200M in ‘millionaire’s tax’ funds. Here’s how they’ll spend it.

The MBTA is getting an influx of cash for safety, staffing, and infrastructure improvements following a $200.8 million allocation of funds from the so-called “millionaire’s tax.” 

The Massachusetts Department of Transportation’s Board of Directors approved the transfer of funds at its meeting Wednesday, divvying up a portion of the nearly $477 million of Fair Share Amendment revenue allocated for transportation needs in fiscal year 2024. 

Passed in 2022, the Fair Share Amendment levies an additional 4% surtax on annual income over $1 million. The revenue is intended for investments in education and transportation. 

As MassDOT Capital Budget Director Susan Woods explained Wednesday, $20 million of the Fair Share funding will go toward the MBTA Workforce and Safety Reserve to address lingering safety concerns from the Federal Transit Administration’s 2022 safety management inspection plan. The FTA’s highly critical report flagged issues with the T’s staffing, safety, and outsized emphasis on capital projects, among other concerns. 

According to Woods, some of the workforce and safety funding could also be spent on hiring and retention initiatives. Another $180.8 million will go toward physical structure improvements within the MBTA’s system. That includes: 

• $20 million for improvements to Commuter Rail infrastructure;
• $50 million for bridge repairs, rehabilitation, and replacement;
• $70 million for station and accessibility improvements;
• $30 million for track authorization and signal improvements on the T’s subway lines;
• And $10.8 million for design on the proposed Red-Blue Connector, a project that would bridge the two subway lines downtown. 

Wednesday’s boost in funding comes at a key time for the MBTA; back in November, the agency estimated it needs nearly $25 billion to replace its aging infrastructure and bring the T into a state of good repair. 

The T is now in the midst of an ambitious yearlong campaign to fix its tracks and eliminate all slow zones through periodic shutdowns.

Abby Patkin

Staff Writer

Abby Patkin is a general assignment news reporter whose work touches on public transit, crime, health, and everything in between.

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