Business, Labor, Health Care and University Leaders Testify in Support of Governor Healey’s Jobs-Creating DRIVE Initiative

Business, Labor, Health Care and University Leaders Testify in Support of Governor Healey’s Jobs-Creating DRIVE Initiative  

BOSTON – Today, Massachusetts business, labor, health care and university leaders came together to testify in support of Governor Maura Healey’s DRIVE Initiative, a groundbreaking proposal to grow Massachusetts’ renowned research and innovation economy and create thousands of new jobs.  

Supporters emphasized to the Joint Committee on Economic Development and Emerging Technologies that this legislation is urgently needed to continue lifesaving research, create jobs, strengthen the economic infrastructure of the state and respond to dramatic federal funding cuts to science and research. 

The Massachusetts economy depends on the research and innovation sectors. The state receives $8.6 billion in annual federal research and development funding, which underpins over 90 health systems, 80 universities, dozens of research institutions, and 1,700 life science companies, including 19 of the top 20 in the world. This federal funding supports 81,300 jobs, $7.8 billion of income, and generates more than $16 billion in economic activity for Massachusetts. 

Massachusetts is home to one in every 10 research and development jobs in the United States. Two out of every five jobs created by science funding are in sectors outside of research and development, like construction, food services, health care, retail and administrative support. The life sciences industry by itself employs 160,000 people, including at biomanufacturing facilities across the state. The state’s higher education and health care institutions produce $156 billion in annual economic output, support close to 900,000 jobs and contribute $4.1 billion in annual tax revenue to the state. 

“Massachusetts’ economy and jobs in every region depend on our research and innovation. It is our economic infrastructure here,” said Governor Healey. “That’s why there is such an urgency to this. The DRIVE Act will create jobs and drive our state’s, our businesses’, and our families’ economic future – starting right now. I’m grateful to broad coalition of supporters who came out to testify today and for the Legislature for their serious consideration of this proposal.” 

The Governor’s legislation proposes $400 million in state funding, while leveraging private-sector investment, to retain talent, create jobs and drive the Massachusetts’ innovation economy forward. $200 million, drawn from a previously authorized pool of up to $750 million, will create a multi-year funding pool to support research projects and jobs at hospitals, universities, and public research institutions. The other $200 million, drawn from Fair Share surtax funds, will support Massachusetts public higher education campuses doing research, cross-regional partnerships and joint ventures.   

“Massachusetts’ innovation economy is the foundation of our competitiveness. It fuels discovery, drives growth, and sustains good jobs in every region of the state,” said Economic Development Secretary Eric Paley. “Through the DRIVE Initiative, we are taking action to protect our leadership in science and technology, support the institutions and workers that make it possible, and ensure that Massachusetts continues to lead the nation in solving the world’s hardest problems.” 

“Massachusetts did not become a global leader in research and innovation by accident, but through sustained, strategic collaboration between government and industry," said Administration and Finance Secretary Matthew J. Gorzkowicz. "As federal actions jeopardize the innovation ecosystem we have built for decades, DRIVE proposes using available funding to bolster this sector--protecting jobs, supporting our state's entire economy, and maintaining our competitive edge."   

“Research and innovation are critical to the Massachusetts economy,” said Quentin Palfrey, Director of Federal Funds and Infrastructure. “The DRIVE Initiative allows us to support economic activity in communities all across Massachusetts, save lives through cutting edge medical breakthroughs, and build the jobs and industries of Massachusetts' future.” 

During her testimony, Governor Healey highlighted examples of companies that exist because of Massachusetts’ research base. The RNA science pioneered at UMass Chan Medical School in Worcester over the past 2 decades has so far led to the creation of 12 new drugs. Its scientists have co-founded companies like Alnylam, which just built a $200 million biomanufacturing facility providing good jobs in Norton, Massachusetts. Another of UMass Chan’s RNA scientists, Melissa Moore, became the Chief Scientific Officer at Moderna, and her team developed the vaccine that helped end the COVID pandemic and save millions of lives.    

Governor Healey also detailed the impact of federal funding cuts at public state research institutions in Massachusetts. Over the last eight months, the UMass system witnessed almost 100 suspensions or cancellations of federal grants, totaling over $35 million. UMass Amherst alone saw 34 cancellations and a loss of over $17.5 million. UMass Chan Medical School in Worcester had to make 134 furloughs and layoffs. 

The long-term impact will be even more severe. The slowdown of the federal grant pipeline has resulted in UMass receiving fewer than half the new grants in Q1 of Fiscal Year 2026 than it did in the same period last year. This will disrupt the progress of research for years to come, placing critical and ground-breaking studies at risk. That in turn will shrink the pipeline of startups, investments, companies, and all the additional jobs and businesses that depend on them.   

Governor Healey also created the DRIVE Acceleration Team, a group of leaders from the science research sector, higher education, labor, business groups and philanthropists. The Acceleration Team has been meeting regularly to develop additional recommendations to strengthen the research and innovation ecosystem and advance scientific discovery and job creation in Massachusetts.