Federal Stimulus in Massachusetts

by Noah Berger, Massachusetts Budget and Policy Center

A new MassBudget report details the American Recovery and Reinvestment Act's impact on Massachusetts.

In total, MassBudget estimates that Massachusetts - both state and local governments, as well as non-governmental organizations and individuals - will receive approximately $17.7 billion through ARRA. This total is comprised of $3.6 billion to help the state address the budget gap; $5.8 billion in tax and related benefits to residents; $2 billion in other direct benefits to residents; $942 million in infrastructure repairs and improvements; and $5.4 billion for other ARRA priorities including workforce training, education, research, and energy efficiency.

Of this $17.7 billion, Massachusetts and its residents have already benefited from more than $4.3 billion in ARRA funds since the law's passage in February 2009. The majority of these funds, $1.8 billion, went to state government to reduce cuts and make targeted investments in health care, education and other important government services. In addition, residents have received at least $2.5 billion in additional, direct benefits in the form of tax reductions, Pell Grants, unemployment benefits, and other programs.

"The American Recovery and Reinvestment act is our government's response to the worst economic crisis in generations. Creating a solution at the scale of that problem - and implementing it immediately - posed enormous challenges," said Noah Berger, executive director of the Massachusetts Budget and Policy Center. "We see in this report how much progress has been made in Massachusetts in the 225 days since the law was signed, but also that there is much work still to be done."

The full report, The American Recovery and Reinvestment Act of 2009: Federal Stimulus in Massachusetts, is available at www.massbudget.org or by clicking here.