Press Release  Governor Healey Files Mass Leads Act to Grow Economy, Support Businesses, Attract Talent

Boston — Today, Governor Maura T. Healey filed the Mass Leads Act, her administration’s economic development bond bill that will strengthen Massachusetts’ global leadership in life sciences and launching game-changing investments in climatetech and applied artificial intelligence (AI). Yesterday, Governor Healey announced that the bill includes a 10-year reauthorization of the transformative Life Science Initiative, as well as a new 10-year investment in climatetech to compete in the emerging clean energy sector. 

In addition to positioning Massachusetts as a global hub for these innovative sectors, the bill also proposes support for small businesses, rural communities, workforce development, and arts and culture.  

This omnibus bill is central to a 10-year economic development strategy to execute the vision outlined in the administration’s 2023 economic development plan: Team Massachusetts: Leading Future Generations.  

“The Mass Leads Act invests in every sector of our economy to help businesses and workers succeed in every region of our state – now and for a generation to come. These proposals will position Massachusetts to maintain our competitive edge on the global stage, while also strengthening our economy by supporting workforce development, small businesses, rural communities, and arts and culture,” said Governor Maura Healey. “Every decision in this package was made through a lens of equity, affordability and competitiveness, and we look forward to working with our Legislative partners to deliver for Massachusetts.” 

“The Mass Leads Act will do wonders for our local economies,” said Lieutenant Governor Kim Driscoll. “It invests in the entrepreneurs and small businesses that are the backbone of our communities, works to close the digital divide and bring more regional equity into our economy, and empowers local government with the tools they need to combat climate change. We have a transformative opportunity to make our economy stronger for generations to come, and we must act on it.” 

“The Mass Leads Act’s investments will continue to lengthen our lead across key sectors and ensure that Massachusetts continues to be the best place for innovative companies to start, scale, and succeed; and the best place for talent from all kinds of backgrounds to start and grow fulfilling careers,” said Secretary of Economic Development Yvonne Hao. “This legislation will invest across all regions and communities across our state, and enable us to lead together as Team Massachusetts.”  

“Massachusetts has an opportunity to build on its global leadership in life sciences and make new investments in climatetech, workforce and talent development and other sectors of our economy that will set the state and its residents up for future success. The Mass Leads Acts does just that through a mix of borrowing, tax incentives and other investments that all fit within our long-term capital and fiscal plan to responsibly and sustainably position the state to grow jobs and industries and take full advantage of our economic strengths,” said Secretary of Administration and Finance Mathew J. Gorzkowicz. 

Aligned with the administration’s economic development plan, this proposal is focused on three main priority areas:  

• Fundamentals – Investing in the fundamentals to enable economic growth    

• Talent – Retaining and attracting the world’s best talent across all backgrounds  

• Sectors – Supporting businesses that power the state’s economy 

The bill proposes several new capital programs, in key areas highlighted in the administration’s economic development plan. In addition to the climatetech initiative, new capital programs include:  

• $100M for the Applied AI Hub for grants to facilitate the application of artificial intelligence (AI) across the state’s ecosystem, which will be informed by the strategic priorities of the AI Strategic Task Force. 

• $75M for the Massachusetts TechHub to establish a new program in Massachusetts for investment in consortia organized around key technology areas, modeled on the U.S. Economic Development Administration’s Regional Technology and Innovation (Tech Hubs) Program.  

• $25M for the Robotics Investment Program for capital grants to advance the state’s leadership in the robotics sector through research, commercialization, and training.  

• $25M for the Business Builds Capital Program for a new grant program to support business improvements, such as energy efficiency, via the Business Front Door. 

The bill also includes capital authorizations for existing programs that remain core to the state’s economic development toolbox, including programs offered through the Community One Stop for Growth as well as capital resources for advanced manufacturing and the tourism and cultural sector:  

• $400M for the MassWorks Infrastructure Program for public infrastructure improvements to spur private development and create jobs. 

• $100M for the Rural Development Fund to provide financial support for infrastructure improvements and community planning efforts in rural communities. 

• $100M for the Seaport Economic Council to support marine economies in coastal communities. 

• $99M for Advanced Manufacturing for flexible grants to support advanced manufacturing initiatives through Mass Tech Collaborative.   

• $50M for the Cultural Facilities Fund to provide resources for capital improvements at cultural facilities, such as museums, theaters, and performance venues.  

• $40M for Destination Development Grants to support critical capital improvements at tourism assets across Massachusetts. 

In total, this legislation recommends approximately $2.8 billion in bond authorizations for capital-related grantmaking, of which $1.75 billion is dedicated to the reauthorization of existing programs and $1 billion is proposed for new capital initiatives. This bill also proposes $750 million in economic development tax program changes, which includes the creation of the new climatetech incentive program and an expansion of the life sciences incentive program.  

Alongside the bill, Governor Healey signed two Executive Orders. One establishes a Cultural Policy Development Advisory Council that will be charged with developing recommendations to the administration for how to support and grow the state’s arts and culture sector. The administration is also committing to identifying and selecting artists-in-residence to collaborate with state agencies and establish, for the first time, an official poet laureate position for the state. 

The second Executive Order establishes a council tasked with reviewing the existing procurement laws and related processes for public building construction projects, such as state laws relative to surety bonds, to identify barriers to small, emerging, and diverse businesses, and to make recommendations that address them.   

The full legislation and key issue briefs will be available on the EOED website. 

Statements of Support 

JD Chesloff, Executive Director, Mass Business Roundtable   

“As a member of the Economic Development Planning Council, the Roundtable was laser focused on ensuring that Massachusetts both maintains and grows its economic competitiveness. To us, this means investing in our competitive advantages, namely talent; creating the conditions and ecosystem to prepare us for what’s around the corner; and expressing the urgency and understanding that Massachusetts is at a critical time as we look to compete on a global stage. The economic development legislation filed by the Healey-Driscoll Administration meets the moment, and is a clear-eyed representation of where we are as a state and where we need to go, providing a bold and comprehensive vision consistent with the work of the Council. The Roundtable is grateful to Governor Healey, Lt. Governor Driscoll, Secretary Yvonne Hao and her team for the inclusive and collaborative process that led to this legislation. We look forward to working with the Legislature and other stakeholders to pass an economic development bill this session.” 

Tamara Small, CEO, NAIOP Massachusetts - The Commercial Real Estate Development Association 

“The permitting reforms included in this bill will significantly increase predictability for housing and economic development projects throughout Massachusetts. A streamlined, predictable, and transparent permitting process is needed to ensure that Massachusetts can address the current housing crisis while also remaining competitive with other markets. These strategies build off the work of the Economic Development Planning Council and will support communities and businesses to ensure critical projects can move forward.” 

Jon Weaver, President and CEO, Massachusetts Biomedical Initiatives 

“Central Massachusetts is competing to become a global biomanufacturing hub, and we’re grateful to the Healey-Driscoll Administration for partnering with regions across the Commonwealth to secure the tools we need to compete in emerging marketplaces. The Massachusetts Life Sciences Center is an invaluable partner to the life sciences ecosystem. Further support and revitalization of their mission will translate into greater opportunities throughout the Commonwealth for entrepreneurship and companies of all sizes to become world leaders.” 

Brian Johnson, President, Massachusetts Medical Device Industry Council 

“When it comes to life sciences, there is no mission accomplished. Staying on the cutting edge of curing disease, alleviating pain, and improving lives requires long-term structural investment, the kind that only the state can provide. With this reauthorization, the Healey-Driscoll Administration has proven that they understand the need to re-invest in this community of healers and innovators and the importance of this industry to the Commonwealth. On behalf of the more than 500 companies, which make up the Massachusetts medtech ecosystem, and the thousands of women and men working in this space to develop and build the next generation of medical technology, I applaud them for this effort. MassMEDIC is proud to work alongside our colleagues in healthcare and government to make sure that the Commonwealth stays the global leader in life sciences.” 

Casey Bowers, Executive Director, Environmental League of Massachusetts Action Fund 

“This is a transformative opportunity to solidify Massachusetts as a global leader in climatetech. This legislation addresses our greatest threat, the climate crisis, and drives economic growth. We can make Massachusetts the best place to start, staff, and scale companies that solve environmental challenges. Our state now has the opportunity to strengthen our economy, build a broad and diverse climate workforce, and accelerate our transition to a clean energy future.” 

Kendalle Burlin O’Connell, Chief Executive Officer and President, MassBio 

“Massachusetts is the greatest place in the world for the life sciences research and development that improves lives worldwide. With this new Life Sciences Initiative, Governor Healey is making a play to remain at the top and ensure that the institutions making the discoveries, the companies bringing new therapies to patients, and the talented people working in the labs and offices can continue to be successful here in Massachusetts. I applaud Governor Healey and her administration for continuing Massachusetts’ legacy of supporting this industry and having the vision to file a bold and modern bill for today’s challenges and tomorrow’s opportunities. We look forward to working with the Administration to support entrepreneurs, enhance the state’s biomanufacturing capabilities, ensure access to healthcare for all residents, and much more.”  

Brian Johnson, President, Massachusetts Medical Device Industry Council 

“When it comes to life sciences, there is no mission accomplished. Staying on the cutting edge of curing disease, alleviating pain, and improving lives requires long-term structural investment, the kind that only the state can provide. With this reauthorization, the Healey-Driscoll Administration has proven that they understand the need to re-invest in this community of healers and innovators and the importance of this industry to the Commonwealth. On behalf of the more than 500 companies, which make up the Massachusetts medtech ecosystem, and the thousands of women and men working in this space to develop and build the next generation of medical technology, I applaud them for this effort. MassMEDIC is proud to work alongside our colleagues in healthcare and government to make sure that the Commonwealth stays the global leader in life sciences.” 

Jon Weaver, President and CEO, Massachusetts Biomedical Initiatives 

“Central Massachusetts is competing to become a global biomanufacturing hub, and we’re grateful to the Healey-Driscoll Administration for partnering with regions across the Commonwealth to secure the tools we need to compete in emerging marketplace. The Massachusetts Life Sciences Center is an invaluable partner to the life sciences ecosystem. Further support and revitalization of their mission will translate into greater opportunities throughout the Commonwealth for entrepreneurship and companies of all sizes to become world leaders.” 

Kevin Knoblock, President and CEO, Greentown Labs  

"This bill demonstrates Governor Healey's commitment to making Massachusetts the climate innovation center of the world. As the largest climatetech startup incubator that proudly calls Massachusetts home, we know this additional investment will not only spur more climatetech innovation, but also help climatetech startups grow, thrive, and stay here in the Commonwealth—creating jobs, making products, and catalyzing economic development across our great state. We've seen the phenomenal impact state funding had on the life sciences industry years ago, and given the urgency of the climate crisis there's never been a better time for this kind of investment in our clean energy future." 

Brooke Thomson, President & CEO, Associated Industries of Massachusetts (AIM)  

“The Healey Administration’s economic development plan is unique in its determination to grow the Massachusetts economy as a whole – We will not simply invent new medicines but will make them here; we will not just create new climate technologies but will deploy them here; we will not just push the boundaries of artificial intelligence but will determine the most innovative ways to use it. The administration is addressing the bedrock issues that will determine the future of the Massachusetts economy and our businesses large and small – housing, transportation, childcare, talent retention and acquisition – while acknowledging the need to support the industries in which the commonwealth holds a competitive advantage.” 

Anne Klibanski, MD, President & CEO, Mass General Brigham 

“As the largest hospital system-based research enterprise in the country and a key driver of Massachusetts’ thriving life sciences economy, Mass General Brigham is proud to work with the Healey Driscoll Administration and other partners to sustain our edge in this crucial sector. Governor Healey’s Mass Leads Act will help us advance the next generation of progress, with a particular focus on health equity. As the state’s largest private employer, we are pleased to partner with Governor Healey, Lt. Governor Driscoll, Secretary Hao, and the entire administration to strengthen our competitive edge, through our collaborative work to bring the ARPA-H Investor Catalyst Hub to Massachusetts, and by participating in the Governor’s Artificial Intelligence Strategic Task Force to make the Commonwealth the leader in applied Artificial Intelligence.”

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