Massachusetts Has Billions Stashed Away For a ‘Rainy Day’

Even before SNAP and other federal funding for government programs were frozen, reduced, or eliminated under DOGE cuts or the government shutdown, most Massachusetts taxpayers had heard about the legendary "Rainy Day" or Stabilization Fund, money set aside to help get us through an emergency.

There is a lot of money in there.

As kids, you may recall your parents had a cookie jar or some other hiding place where they stashed spare cash "for a rainy day." My Nana, a survivor of the Great Depression when banks failed and many folks lost everything they had, hid cash all over the house.

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Emptying Nana's house after she passed was a bizarre task. Every book, coat, pants pocket, empty shoe, and vase had to be closely inspected, as there was a good chance each contained hidden cash. That was Nana's rainy day account.

Massachusetts' $8 Billion "Rainy Day" Fund

Massachusetts has a rainy day account known as the Stabilization Fund. As of June 2, 2025, there was $8.165 billion in the cookie jar.

The Massachusetts Office of the Comptroller says the fund "serves as a reserve account to enhance the Commonwealth's fiscal stability."

"The Stabilization Fund balance includes interest earned by the Stabilization Fund, excess capital gains above the annual threshold, income tax withholding on certain transfers of Lottery prizes, and 10% of the tax on the gaming profits generated by the MGM Springfield and Encore Boston Harbor Casinos," according to the Comptroller.

What the Rainy Day Fund Accomplishes

Massachusetts lawmakers may vote to transfer excess funds to and from the account as needed. Bonding agencies look more favorably upon states with solid emergency savings accounts.

Where to Check In on the Rainy Day Fund

The Massachusetts Office of the Comptroller posts updates on the status of the Stabilization Fund on its website.