Healey Unveils $400 Million Investment to Bolster Massachusetts Research Economy
Massachusetts Governor Maura Healey has announced a sweeping $400 million initiative designed to safeguard the state’s position as a global leader in research and innovation, particularly in the face of fluctuating federal funding. The plan, dubbed DRIVE – an acronym for Discovery, Research and Innovation for a Vibrant Economy – aims to sustain the economic impact of Massachusetts’ robust “eds and meds” sector.
The proposal comes as universities and research institutions nationwide grapple with uncertainty stemming from cuts and freezes to federal grant funding enacted during the previous administration. “Massachusetts is the global leader in innovative research and the discovery of lifesaving cures,” Healey stated in an official release. “Research funding is also foundational to the Massachusetts economy – it’s economic infrastructure here.”
A State Steps Up Amid Federal Uncertainty
Governor Healey framed the investment as a proactive measure to protect a critical component of the state’s identity. Citing “the face of uncertainty from the federal government,” she emphasized the importance of preserving “one of the things that makes Massachusetts so special – our global leadership in health care and helping families across the world.”
A recent report from the University of Massachusetts Donahue Institute’s Economic & Public Policy Research Group underscores the significance of federal research and development (R&D) funding to the state’s economy. Despite representing just 2.4% of national employment, Massachusetts is home to 11.3% of all R&D jobs – 4.6 times the national average. In Fiscal Year 2024 alone, the $8.57 billion in federal research funding received by Massachusetts supported 81,300 jobs, generated $7.8 billion in income, and spurred over $16 billion in economic activity. More than 700 organizations across the state have benefited from these federal R&D awards, with the National Institutes of Health, the Air Force, and the National Science Foundation being the top three funders.
How the DRIVE Fund Will Operate
The $400 million investment will be allocated across two key areas. Half – $200 million – will be drawn from the state’s stabilization fund to create a multi-year research funding pool. This pool will provide direct support to universities, hospitals, and other research institutions, as well as establish a one-year fellowship program for early-career professionals.
The remaining $200 million will be designated as a public higher education bridge funding reserve, financed by revenue generated from the Fair Share surtax approved by voters in 2022. This reserve will offer financial assistance to Massachusetts public higher education institutions for both direct and indirect research costs, fostering cross-regional partnerships and joint ventures. It will also prioritize the retention and recruitment of research and teaching positions, including opportunities for graduate students, post-doctoral researchers, and other emerging professionals.
Catalyzing Further Investment and Collaboration
Beyond the direct funding allocations, Governor Healey’s plan includes the creation of the Research Catalyst Fund, a new 501(c)(3) entity designed to attract and distribute philanthropic contributions and matching funds from industry partners. Donors will have the option to direct their contributions toward specific institutions or projects, or contribute to a shared pool to maximize impact.
A newly formed Research Opportunity Review Board will govern the Research Catalyst Fund, identifying projects that promise both public benefit and advancement of the innovation economy. Furthermore, an executive order will establish an “Advisory Commission on Advancing Research and Discovery in Massachusetts,” bringing together leaders from the medical, higher education, and economic development sectors to recommend further strategies for strengthening the state’s research ecosystem and driving job creation.
Broad Support from Higher Education Leaders
The proposal has garnered enthusiastic support from across the state’s higher education landscape. University of Massachusetts President Marty Meehan stated, “by standing up for research, innovation, and jobs, this initiative will protect Massachusetts’ world-renowned research and innovation economy and ensure we continue to attract and retain the best and brightest talent.” Northeastern University President Joseph E. Aoun commended Governor Healey’s “commitment to ensuring Massachusetts remains a global leader in cutting-edge research,” adding that collaboration is key to “advance the frontiers of discovery and develop solutions to the world’s most pressing challenges.” MIT President Sally Kornbluth described the DRIVE program as “a welcome endorsement of the Commonwealth’s ‘eds-and meds’ ecosystem,” while acknowledging that federal funding remains crucial, and applauded the creation of the advisory commission to ensure the state’s continued leadership in research and innovation.
