Bill Directs $234 Million in Aid to Hospitals and Community Health Centers Around Massachusetts

(BOSTON—9/18/2025) The Massachusetts Legislature today enacted a supplemental budget bill that prioritizes care for the state’s most vulnerable populations by strategically targeting support to fiscally-strained hospitals and community health centers.

“Community health centers are the backbone of care for our most at-risk neighbors. By investing in these institutions, we ensure that the priority remains connecting people with the treatment they need and providing that care within their own communities,” said Senator Nick Collins. “This funding strengthens our commitment to equity in health care and helps safeguard access for those who need it most.”

The legislation addresses a widening funding gap in the Health Safety Net program, which pays acute care hospitals and community health centers for necessary medical care for low-income, uninsured, and underinsured Massachusetts residents. Reckless federal policies and funding shortfalls have exacerbated the fiscal strain on these vital institutions that serve people most in need.

“This funding will ensure that our local community health centers can continue to provide high quality medical care to our neighbors and most vulnerable residents,” said Representative David Biele. “I was proud to join my colleagues in the Legislature in supporting this crucial legislation.”

This legislative response provides critical relief in the face of an unfriendly federal government and economic headwinds, distributing aid based on criteria that directs funding to vulnerable populations most in need of assistance.

The funding agreement provides $199 million to eligible high public payer acute care hospitals across Massachusetts, using an approach that maximizes federal reimbursements, stabilizes the Health Safety Net Trust Fund, and targets payments for the greatest taxpayer impact. Of this, $122 million goes to acute care hospitals based on criteria that prioritize those serving the largest share of low-income patients, offering the most affordable services, and facing the most severe financial strain. Another $77 million is directed to the Health Safety Net Trust Fund to stabilize support for hospitals caring for the Commonwealth’s most vulnerable populations.

Community health centers, which serve the largest share of vulnerable residents but face federal funding delays, Medicaid cuts, and rising medical costs, will receive $35 million in relief. This includes $2.5 million for the Massachusetts League of Community Health Centers to advance regional savings initiatives such as shared service models.

Both chambers of the Legislature voted to enact the supplemental budget on Thursday, sending the legislation to the Governor for her signature.