The Yarmouth Resort in Yarmouth, Massachusetts. It is a hotel used to house migrants. Photo by Tom Joyce
Massachusetts Governor Maura Healey wants even more money for the state’s emergency shelter system.
On Monday, Healey proposed a $425 million supplemental spending bill to sustain Massachusetts’s emergency assistance shelter program for the next six months. This program has been strained by increasing caseloads, mostly due to a surge in migrant families over the past two years, including illegal immigrants.
In November, Healey’s administration announced plans to reduce costs by shortening stays in shelters and phasing out the use of hotels and motels. These measures stem from recommendations made by the Special Commission on Emergency Housing Assistance Programs, which was tasked by lawmakers to address the program’s ballooning expenses. This year, the system cost about $1 billion. The Healey administration hopes to cut that cost to about $400 million, according to State House News Service.
“We appreciate the Legislature’s consideration of this proposal,” Healey said in a written statement. “We continue to call on the federal government to act on a bipartisan border security bill because Massachusetts taxpayers should not be footing the bill for this federal problem.”
In hopes of cutting costs, Healey outlined a fiscal plan to reduce the caseload to 4,000 families by June 2026. That would be a significant reduction from the 7,500-family cap the system has supported this budget year.
The $425 million would come from the Transitional Escrow Fund, a reserve account originally established for budget surpluses, according to according to State House News Service.
Healey’s office told State House News Service this approach is designed to protect other state-funded programs from potential budget cuts due to shelter-related expenses. The proposal also includes aid for school districts with increased enrollments from shelter families and support for municipalities hosting shelters.
Healey chose not to include an increase in the HomeBASE benefit in this bill. Currently, HomeBASE offers up to $15,000 worth of housing assistance annually for up to three years to those transitioning out of the state’s emergency shelter system. The administration determined that this level of support is sufficient after reviewing similar programs in other states and consulting with stakeholders, according to State House News Service.
Massachusetts Senate Ways and Means chairman Michael Rodrigues acknowledged the governor’s efforts. However, he stressed the need for legislative input for the shelter program, which the state calls Emergency Assistance, or “EA” for short.
“The Legislature hasn’t had its say yet,” Rodrigues told State House News Service. “When the administration comes back for a supplemental appropriation for the EA system, it’s going to be part of a robust conversation.”
The administration wants to transfer the requested $425 million from the Transitional Escrow Fund to a newly established reserve account to cover shelter expenses through June. The blueprint outlines plans to maintain current caseloads in fiscal year 2025 while implementing proposed policy changes.
By fiscal year 2026, the administration aims to achieve operational sustainability.
“Beyond FY25, the administration intends to move towards operational sustainability in FY26 and beyond, recognizing that there is not identified funding for extraordinary EA costs in the long term,” the administration wrote. “If successful, the system will return to baseline caseloads and costs, and therefore operational and fiscal sustainability, by the end of FY26.”
Healey has not proposed a residency requirement for the shelter system, although Republicans in the state legislature have called for it.
Massachusetts is the only state in the country with a right-to-shelter law that lacks a residency requirement.
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The Yarmouth Resort in Yarmouth, Massachusetts. It is a hotel used to house migrants. Photo by Tom Joyce 
