President Donald Trump and Congressional Republicans’ federal funding cuts have sliced roughly $3.7 billion away from Massachusetts and impacted at the very least 4 completely different fiscal years, a sum that’s more likely to reshape spending methods on Beacon Hill, information up to date Tuesday by Gov. Maura Healey’s workplace confirmed.
Massachusetts depends on billions in federal funding to pay for applications, main development initiatives, and well being take care of residents.
Beacon Hill Democrats have made clear over the summer season that they’re scrambling to seek out options to make up for the lack of important money whilst state spending has elevated over time.
“There is no way that any state can make up for the billions of dollars they are cutting from our budgets. Here in Massachusetts, we are doing everything we can to protect our communities from these negative impacts,” Healey mentioned in a press release.
The $3.7 billion in cuts influence fiscal 12 months 2025 by means of at the very least fiscal 12 months 2028. The cuts embody $399 million misplaced attributable to govt actions taken by Trump and one other $3.3 billion due to the “One Big Beautiful Bill,” or the key tax breaks and spending cuts laws Trump accredited over the summer season.
A White Home spokesperson didn’t instantly reply to a Herald inquiry.
Within the fiscal 12 months that began July 1, Massachusetts has misplaced out on $1.3 billion in federal funding — $379 million attributable to govt actions by the Trump administration and one other $967 million due to Congressional actions, in line with the Healey administration.
The well being care sector has taken the most important hit in fiscal 12 months 2026, with roughly $2 billion now lacking, in line with an up to date database maintained by the Healey administration.
A program that helps decrease month-to-month medical health insurance premiums primarily based on anticipated revenue and household dimension and one other that pays for sure medically vital companies supplied to certified low-income sufferers at Massachusetts neighborhood well being facilities have misplaced $150 million in federal funding, in line with the database.
Those self same two applications are additionally anticipated to lose a complete of $600 million in federal funding in fiscal years 2027 and 2028, the information confirmed.
Beacon Hill Democrats will quickly begin crafting the fiscal 12 months 2027 price range, a course of that begins with prime price range writers agreeing on a baseline for anticipated tax income over the 12-month interval.
The Healey administration mentioned the state is predicted to lose out on $326 million in tax income in fiscal 12 months 2027 and $308 million in fiscal 12 months 2028 due to “various tax provisions” within the “One Big Beautiful Bill.”
That misplaced cash is along with one other $664 million that income officers count on Massachusetts to overlook out on this fiscal 12 months due to the federal laws, a state of affairs legislative price range writers described as “daunting” earlier this month.
Healey inked an almost $61 billion fiscal 12 months 2026 price range in July that boosted spending by 5% however was $1 billion decrease than the model the governor launched in January.
