Massachusetts Gov. requests $890.4M investment in TBED and innovation initiatives in five-year capital funding plan

Massachusetts’ Gov. Maura Healey recently proposed a multi-year funding strategy (Five-Year Massachusetts Capital Investment Plan (CIP) [FYs 2026-2030] that  would include investment of $890.4 million, including general obligation bonds and private sector contributions, for many of the state’s TBED and innovation initiatives (programs are outlined below). If approved by the state legislature, the package would also provide capital funding resources to implement the Mass Leads Act passed last fall (see this Digest article for more information).

It is unclear how federal budget cuts included in the recent reconciliation act will impact the state legislature’s decision, but if passed as introduced by Gov Healey, a significant portion of the new capital plan funding to the state’s the Executive Office of Economic Development (EOED)–$685.10 million–would be distributed in total over the next five years to the following TBED key priority initiatives…:

• $251 million to support implementation of the Mass Leads Act;
• $230 million for the Life Sciences Capital program, which supports the Massachusetts Life Sciences Center with research grants to encourage job growth and innovation in the life sciences industry. Funding will also support the STEM equipment and supplies program, which enables high schools and middle schools to purchase equipment, materials, supplies, and technology that support life sciences education and training;
• $78 million to the Research and Development Matching Grant Program. The Massachusetts Technology Collaborative Innovation Institute manages this targeted grant program to support assets and create an environment that further enables collaboration between higher education, private industry, and the public sector;
• $68.6 million for the Massachusetts AI (Artificial Intelligence) Hub, which is administered by the Massachusetts Technology Collaborative and provides capital grants for the development and application of artificial intelligence in key Massachusetts sectors, including life sciences, healthcare, and climatetech. The hub is charged with executing the vision outlined in 2024 by Governor Healey’s AI Strategic Task Force; and
• $57.5 million for the Massachusetts Clean Energy Center (MassCEC). This funding provides capital grants to support R&D, manufacturing, commercialization, and deployment of climatetech technologies.

…with the remaining $205.3 million in total funding allocations toward innovation and entrepreneurial program investments:

• $39 million to the Massachusetts Manufacturing Innovation Initiative (M2-I2). This grant program, which provides state matchin funds to recipients of federal awards, is administered through the Massachusetts Technology Collaborative. The initiative supports cutting-edge research centered around emerging manufacturing technology, including integrated photonics, flexible hybrid electronics, and advanced functional textiles fields;
• $39 million for the Massachusetts Manufacturing Accelerate Program.The Massachusetts Manufacturing Accelerate Program aims to co-invest in infrastructure for small- to medium-sized manufacturers to better prepare their businesses to stay competitive. This flexible grant program complements M2-I2 by expanding the state’s ability to support advanced manufacturing companies around Massachusetts;
• $33.5 million for MassTech Hub. Administered by the Massachusetts Technology Collaborative, the Mass Tech Hub is a new program that provides capital grants for consortia in key technology areas, with a focus on regions outside of Greater Boston;
• $32 million for EOED’s robotics grant;
• $31.8 million towards the Business Builds. This funding provides capital grants to businesses that construct or expand commercial, industrial, or manufacturing facilities. This new program will be made available as part of the recently launched Business Front Door, the administration’s new platform for businesses to explore resources Massachusetts has to offer;
• $25 million for MassVentures START Grants. The START program from MassVentures offers companies $100,000 to $500,000 in non-dilutive funds as well as business guidance to help them commercialize their technologies. This program complements federal programming to help early-stage companies scale in Massachusetts; and,
• $5 million to the Micro-Business Grants, “Biz-M-Power”. Biz-M-Power provides matching capital grants to microbusinesses and entrepreneurs across Massachusetts.

This article was prepared by SSTI using Federal funds under award ED22HDQ3070129 from the Economic Development Administration, U.S. Department of Commerce. (The statements, findings, conclusions, and recommendations are those of the author(s) and do not necessarily reflect the views of the Economic Development Administration or the U.S. Department of Commerce.