By Globe Columnist, Updated October 17, 2025
“What began earlier this year with the Trump administration’s cuts to research funding has escalated into a broader fiscal squeeze of tax changes and federal spending reductions that could cost Massachusetts roughly $3.7 billion over three years, according to state estimates.
The clouds are darkening over Beacon Hill at the same time that local businesses have slowed hiring in reaction to tariffs and what Susan M. Collins, president of the Federal Reserve Bank of Boston, this week called a “highly uncertain environment.”
Yes, we’re in for some nasty weather — weaker economic growth, higher unemployment, and potential budget deficits — but forecasters disagree on just how bad it might get. The murky outlook raises a central question: Has the state done enough to batten down the hatches?…”
MassBudget Reference:
“Phineas Baxandall, director of research and policy analysis at the Massachusetts Budget and Policy Center, said that while the income surtax and capital gains revenues are prone to swings, budget projections for both are usually conservative. He also urged Beacon Hill to opt out of new federal corporate tax rules, a process known as decoupling that the state has used in the past. Dropping the five most costly federal provisions would preserve $463 million in revenue this fiscal year, Baxandall said.”
