Gov. Healey Rolls Out State’s $400M Program to Offset Federal Research Grant Cuts

Massachusetts Gov. Maura Healey has announced a plan to confront the economic divide resulting from the federal government's cuts to research grants with research funding from the state.

Speaking from the State House on Thursday, July 31, Healey said that her Discovery, Research, and Innovation for a Vibrant Economy — DRIVE — initiative will invest $400 million into research by Bay State hospitals, independent research institutions, and universities. These entities and more like them have faced significant challenges in advancing their work since President Donald Trump and his administration cut funding for federal research grants this year.

“In the face of uncertainty from the federal government, this is about protecting one of the things that makes Massachusetts so special — our global leadership in health care and helping families across the world,” the governor said in comments shared by the Boston Herald.

Dr. Kevin Churchwell, the CEO of Boston Children's Hospital, said that his institution, like dozens of others through the Bay State, is struggling to navigate the “unpredictability” from the federal government. 

“That's why I'm so excited by this proposed bill that recognizes the things that make us special and plays to our collective strengths. It will continue to position Massachusetts as the best place to do this work,” he said to the Herald.

According to GBH, Healey's office referenced a July 2025 report from the UMass Donahue Institute's Economic and Public Policy Research Group. This report revealed that the $8.57 billion in annual federal research and development funding that the federal government has provided to Massachusetts in the past supports 81,300 jobs, $7.8 billion of income, and more than $16 billion in economic activity.

Approximately $200 million of Healey's $400 million proposal would be directed toward a one-time, multi-year research funding pool, headquartered at MassDevelopment, to support research projects at hospitals, independent research institutions, and universities. The state would contribute to the fund by using the interest from its stabilization fund. As of June 2025, this fund had a balance of $8.1 billion.