How Will Federal Actions Impact Massachusetts?
The state and federal governments operate together to ensure the well-being of the residents of the Commonwealth. The July 2025 budget reconciliation bill, also referred to as the “One Big Beautiful Bill” Act (OBBBA), destabilizes this partnership. If fully implemented, the bill would decimate programs that support our most vulnerable in favor of further enriching the nation’s most wealthy.
Slashes to major public services like SNAP and Medicaid are paired with substantial tax breaks for the rich. These cuts will have human costs, and force Massachusetts lawmakers to make impossible decisions to balance the budget.
Below, we have compiled resources from our trusted partners to better understand the impact that these changes will have on our neighbors in the Commonwealth and across the country.
Research and Resources
Why Massachusetts Should Not Opt-In to the Federal School Voucher Program
(July 10, 2026) – MassBudget Policy Analyst Anthony Clough discusses why Massachusetts should not opt into the new federal school voucher program that would distribute tax credits to private donors.
Testimony relative to “the Impact of Federal Policy on the Racial Wealth Gap”
(March 31, 2026) – MassBudget President Viviana Abreu-Hernandez discusses how the One Big Beautiful Bill Act (OB3) is one of the multiple tools being used to change policy that by design will increase the racial wealth gap in the country.
Testimony regarding An Act to manage federal tax changes in Massachusetts
(February 12, 2026) – MassBudget Director of Research and Policy Analysis Phineas Baxandall advocates for protecting the Commonwealth from bearing the full brunt of the deep tax cuts enacted at the federal level in last summer’s sweeping “One Big Beautiful Bill Act” (OB3).
Protect Massachusetts’s Fiscal Stability: Which OBBBA Tax Changes to Opt Out of and Why
(November 10, 2025) –MassBudget Senior Policy Analyst Kurt Wise lays out which tax changes in the OBBBA lawmakers should opt out of and why they are especially problematic for Massachusetts.
Impact on Healthcare Affordability
Center on Budget and Policy Priorities (October 29, 2025) – Health Insurance Premium Spikes Imminent as Tax Credit Enhancements Set to Expire
MassBudget calls for MA lawmakers to opt out of the five most costly corporate tax changes in the federal OBBBA
(October 8, 2025) –While the Commonwealth cannot single-handedly reverse these damaging federal policies, it has the authority to prevent federal tax changes from automatically becoming part of the state’s own tax code.
Massachusetts state government analysis on impact of federal funding cuts
Mass.gov (Ongoing) – Recent federal actions are affecting the flow of essential funding to states
Direct Impact of Reconciliation Bill on Massachusetts Families
Center on Budget and Policy Priorities (August 1, 2025) – Harmful Republican Megabill Fails Massachusetts Families, Children, and Communities
Funding Cuts to Organizations Supporting Arts, Humanities, and Learning
Center on Budget and Policy Priorities (July 7, 2025) – The Trump Administration Is Threatening Libraries, Museums, and Other Nonprofits That Support the Arts, Humanities, and Learning
State-by-State Impact of Senate Work Requirement Proposal
Center on Budget and Policy Priorities (June 13, 2025) – Research Note: Expanded Work Requirements in Senate Agriculture Committee Proposal Would Take Away Food Assistance From Millions: State Estimates
State-by-State Impact of Cost Shift/Unfunded Mandate
Center on Budget and Policy Priorities (June 13, 2025) – Research Note: Senate Republican Leaders’ Proposal Risks Deep Cuts to Food Assistance, Some States Ending SNAP Entirely
Overview of Reconciliation Bill’s Impact on Families
National Women’s Law Center (ongoing) – Why the GOP’s Budget Bills Are Anything But Pro-Family
Analysis of the Proposed SNAP Cuts’ Impact on Massachusetts
Massachusetts Law Reform Institute (June 16, 2025) – Preliminary Analysis: SNAP Cuts Proposed by Congress, Harm to Massachusetts
Tracking the Impact of Tax Policy Changes in the Reconciliation Bill
Institute on Taxation and Economic Policy (ongoing) – Federal Tax Debate 2025
Changes to the EITC in the House Reconciliation Bill
National Women’s Law Center (June 13, 2025) – Millions of Qualified Families May Lose Out on the Credit Due to Newly Created Red Tape
Issue Brief on the Finalized House Reconciliation Bill
First Focus (May 2025) – How the Terrible, Horrible, No Good Very Bad Budget Bill Threatens the Health and Well-Being of Millions of Children
MassBudget's Reactions and in the News
Read Our Statement on how MassBudget Stands with Partners to Create an Inclusive Democracy, Despite Federal Efforts (March 2026)
“Throughout the year, Massachusetts Budget and Policy Center (MassBudget) listens to and works with our grassroots, community, and union partners on how to build a strong, inclusive democracy.”
Read Our Statement on Governor Healey’s Proposal to Preserve Hundreds of Millions in State Revenue (January 2026)
“MassBudget commends Governor Healey for taking an important first step today to preserve critical state revenue in the current fiscal year. The governor filed a bill that will create a phased-in approach to the five most costly corporate tax changes of the federal “One Big Beautiful Act” (OB3).
Read Our Statement on how the Expiring Federal Health Tax Credits Could Cost Massachusetts Residents Thousands (December 2025)
“The enhanced Premium Tax Credits (PTCs) have helped more than 20 million people afford health coverage in the United States and, unless Congress takes action, millions will lose health insurance.”
Read Our Statement on the Reconciliation Bill Signed by the U.S. President (July 7, 2025)
“The President’s agenda and this bill further worsens racial and income inequities, rolling back decades of historic advances that were moving the United States toward being a better country for all.”
Read Our Statement on the House’s Reconciliation Bill (May 23, 2025)
“This is not a ‘big, beautiful’ bill. This is a ‘billionaire bailout bomb’ that punishes poor families, and strips healthcare and food from millions, in order to give the ultra-wealthy more tax breaks.”
“MA labor unions rebuke new federal corporate tax breaks” – Public News Service, MSN
By Kathryn Carley, February 23, 2026 Union leaders in Massachusetts are urging state lawmakers to reject the adoption of corporate tax cuts included in last year’s “One
“State puts approach to federal tax law changes on fast track” – 22 WWLP & State House News Service
By: Colin A. Young, Feb 12, 2026 Administration officials defended Gov. Maura Healey’s approach to mitigating state revenue impacts of recent federal tax code changes
