In March 2026, the Healey-Driscoll Administration awarded $10 million through MassDOT’s newly-established Microtransit and Last Mile Transit Grant Program. It was a relatively quiet announcement, but it signaled something loud: Massachusetts has decided that small, on-demand, electric-friendly transit is no longer an experiment — it’s policy.
For anyone watching where clean mobility is headed in the Commonwealth, this matters.

The Climate Math Is Unforgiving
Transportation is the single largest source of greenhouse gas emissions in Massachusetts, accounting for roughly 38% of statewide emissions in the most recent state inventory; that’s more than buildings and more than electricity. State law doesn’t care whether that number is convenient. The Global Warming Solutions Act, as updated by the 2021 Next-Generation Roadmap, requires Massachusetts to cut transportation-sector emissions 34% below 1990 levels by 2030 and reach net-zero across all sectors by 2050.
To stay on course, the state set targets of 200,000 EVs on the road by the end of 2025 and 900,000 by 2030. According to the 2025 Massachusetts Climate Report Card, the state ended 2025 at 166,296 EVs, short of its goal.
The state’s response is telling. Rather than retreating from its climate targets, Massachusetts is doubling down on the strategies it controls: building out charging infrastructure (the state is now the national leader in charger density), electrifying medium and heavy-duty vehicles — registrations of which jumped 140% in 2025 — and investing in alternatives that get people out of single-occupancy cars in the first place.
That’s where microtransit enters the picture.
What MassDOT Just Funded
The Microtransit and Last Mile Transit Grant Program was established with $10 million in Fair Share funding through the FY25 supplemental state budget. In its first cycle, MassDOT awarded nine grants totaling $10 million. Among the recipients:
- Salem received $1 million to continue the Salem Skipper, an on-demand microtransit service serving Salem, Beverly, and Danvers.
- Woburn received $1 million to pilot a new regional microtransit service in partnership with Burlington, Wakefield, and Reading.
- Fourteen Regional Transit Authorities received a combined $3.25 million through a joint application to expand microtransit across communities statewide.
- Northampton received $1.5 million to expand the ValleyBike electric bikeshare network.
- Quincy received $250,000 to extend the Bluebikes system across the Neponset River.

The program’s stated priorities tell you where Massachusetts is going. MassDOT was directed to favor projects that extend service to veterans, working families, older adults, people with disabilities, and low-income individual.
The state wants flexible, accessible, equity-oriented transit. Service that fills gaps.
The Funding Tailwind Is Bigger Than One Grant
The microtransit grant is one of several converging tailwinds.
The November 2024 climate law — An Act Promoting a Clean Energy Grid, Advancing Equity, and Protecting Ratepayers — consolidated and accelerated the permitting process for clean energy infrastructure, expanded the state’s EV charging network and incentives.
MassCEC’s Clean Transportation programs offer free fleet assessments, charging-infrastructure design support, and a $50 million evergreen climatetech fund for early-stage Massachusetts companies building toward decarbonization.
MassDEP’s heavy-duty vehicle electrification program has been making competitive awards of up to $500,000 per applicant to replace older diesel shuttle buses with electric versions. This initiative was funded through the Volkswagen settlement and the state’s Climate Protection and Mitigation Trust.
In August 2025, Massachusetts announced an additional $46 million through FY27 for EV charging infrastructure. And Governor Healey’s $10 billion energy affordability plan, introduced in 2025, layers cost-relief mechanisms on top of the climate work. This serves as a strong signal that decarbonization and affordability are being treated as the same problem rather than competing ones.
Taken together, this is the most coordinated state-level push for clean micro-mobility Massachusetts has ever seen.
What This Means for FreeFly — and for Boston
FreeFly was incorporated in Massachusetts in December 2025 with one thesis: zero-fare electric micro-transit, funded by the businesses and institutions that benefit from it, is the right operating model for a state that has to electrify transportation while keeping it affordable for residents.
The Commonwealth’s policy environment is now actively rewarding that thesis.
Every parking garage operator, university, hospital system, assisted living provider, sports venue, and municipality looking at how to fill the last-mile gap in their service area is operating in a funding environment where:
- The state is putting real capital behind microtransit, and the first round of grants will not be the last.
- Permitting for clean infrastructure is faster than it used to be.
- Fleet electrification has free technical support and meaningful grant matches available.
- Communities that adopt accessible, equitable transit get prioritized for state dollars.
For sponsors, this means partnering with FreeFly is no longer just a marketing or service decision — it’s an alignment with where Massachusetts is putting its weight. For municipal leaders, it means a private operator built specifically for the Massachusetts regulatory and funding environment is now available as a partner for grant-eligible programs.
The Bottom Line
Massachusetts is not waiting for federal climate policy to come back into focus. The state is building the funding architecture, the regulatory framework, and the political will to electrify shared transportation on its own terms.
Microtransit is now a recognized, funded, and prioritized piece of that architecture. The question for any Greater Boston organization with a transit gap is no longer whether to act, it’s how quickly to move while the policy and funding environment is this favorable.
FreeFly is built to move.


