Massachusetts Halts Executive Branch Hiring as Federal Cuts Loom

A broad hiring freeze hit Massachusetts state government on May 27, driven by growing worries over federal cuts and uncertain economic signs. The move affects tens of thousands of state workers across the executive branch.

"The people of Massachusetts expect us to protect and maximize their tax dollars, and that's exactly what we're doing. Tariffs and funding cuts from Washington are causing so much economic damage and instability. We are taking this step to prepare for more uncertain economic times, protect taxpayer dollars, and move our state forward while ensuring funding will be available for the vital services people need," said Governor Maura Healey to Axios Boston.

Federal money supports Massachusetts with $22.9 billion yearly, including $16.1 billion for regular operations - about a third of what the state spends. The freeze could end once state lawmakers approve next year's budget.

This pause comes as officials deal with a huge $61 billion spending plan. While the budget would increase spending by 6%, some workers might be exempt from the freeze. Police and direct care workers could get exceptions, though they haven't spelled out the details yet.

Budget experts are getting ready for possible Medicaid cuts as Congress works on tax changes. These shifts could hit states like Massachusetts hard. But April brought positive news - tax revenue beat expectations by $1 billion, helped by extra taxes on high earners and investment profits.

In mid-May, they launched a new website tracking federal funding changes. It shows how decisions in Washington affect state programs. Meanwhile, regular tax collection has stayed flat or fallen short of targets for most of the fiscal year.

Officials plan to keep the freeze until July's budget starts. It's the first major cost-cutting move under the current administration.