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Massachusetts Leaders Urge Compromise to Avoid Federal Shutdown

Lawmakers in Massachusetts discussing federal funding

Boston, September 30, 2025

News Summary

In a critical moment for Massachusetts, lawmakers are struggling to reach an agreement on federal funding, with health care becoming the central issue. The government is set to run out of money soon unless a stop-gap measure is passed. State leaders are urging cooperation to prevent a shutdown that could disrupt essential services, as concerns grow over potential cuts to Medicaid and other programs that affect millions of residents. As the negotiations continue, state officials are preparing contingency plans to mitigate the impact of possible funding reductions.

Boston

Last-minute funding talks between Democrats and Republicans yielded little progress on Monday. The government is set to run out of money at 12:01 a.m. Wednesday unless a stop-gap funding measure passes, and negotiators remain divided with health care emerging as the central sticking point. Congressional leaders and President Donald Trump are at odds over a looming shutdown, and state officials are moving to limit disruption if no agreement is reached.

What is happening now

Lawmakers failed to reach agreement during last-minute meetings, leaving the immediate path forward uncertain. Health care has become the sticking point for Democrats in these negotiations, and federal leaders remain split over the scope and conditions of funding. Senator Ed Markey (D-Massachusetts) criticized Republicans for actions he said are harming the health care system in Massachusetts. At the same time, Vice President JD Vance stated negotiations should happen in the context of a government that provides essential services.

Massachusetts leaders, including Governor Maura Healey, are urging compromise among lawmakers to avoid a shutdown and protect state services. The Massachusetts Office of the Comptroller has instructed department heads to develop “contingency plans” by the close of business Tuesday so the state can move quickly if federal funds are delayed or reduced.

State preparations and budget pressure

State officials say difficult choices will be required if federal funding is cut. Representative Stephen Lynch (D-Massachusetts) indicated the need for hard decisions as programs are co-funded by state and federal sources, and the state is at its limit. Senate Minority Leader Chuck Schumer (D-New York) asserted that the decision to shut down lies with the Republicans, shifting the political responsibility for the outcome.

The proposed state budget includes a notable increase for human services, but uncertainty remains. The proposed budget includes a $2.8 billion increase, bringing the HHS budget to $33.3 billion, but cuts may still be necessary. State Health and Human Services officials are identifying core priorities to shield from reductions, focusing on home health care and preventative care for children.

Federal cuts and the impact on health programs

Federal proposals under consideration would reduce funding for major programs. Federal programs, particularly Medicaid, are expected to face a $880 billion cut over the next decade, reversing years of progress in the state. Approximately 2 million people in Massachusetts depend on MassHealth, the state’s Medicaid program, which relies heavily on federal funds, amplifying local concern about program stability.

Possible federal measures could include rescinding Medicaid regulations, imposing spending limits, and introducing work requirements for eligibility. In response, Massachusetts HHS officials are prioritizing essential services and designing contingencies to blunt the largest impacts.

Public health and mental health concerns

State public health officials are adjusting operations to protect critical programs. The Department of Public Health is creating a state vaccine purchasing program to address cuts to vaccination initiatives and other public health measures. Meanwhile, the federal Centers for Disease Control and Prevention is attempting to reclaim tens of millions from federal health-related grants, which would affect multiple initiatives statewide.

There is growing concern about mental health services. There is concern over proposed closures of mental health facilities and programs, such as the Pocasset Mental Health Center and Pappas Rehabilitation Hospital for Children. Workers worry that closures will exacerbate the lack of mental health resources on Cape Cod. Pappas Hospital serves patients with significant disabilities, and its closure would remove a vital resource for those residents. Lawmakers are receiving pushback from constituents concerned about protecting essential mental health services amid budget constraints.

Next steps and timeline

If Congress does not pass a stop-gap funding measure before the deadline, federal operations could be disrupted starting at 12:01 a.m. Wednesday. State officials have prepared directives and contingency plans to minimize harm to prioritized services but have acknowledged that some reductions may be unavoidable if federal funding is curtailed.

Officials at the state and federal levels continue to negotiate, while local leaders and service providers evaluate the operational and human impacts of potential cuts. The situation remains fluid and could change quickly if negotiators reach an accord or if one side alters its position.

FAQ

Q: What is the immediate federal funding deadline?

A: The government is set to run out of money at 12:01 a.m. Wednesday unless a stop-gap funding measure passes.

Q: What happened in the recent negotiations between parties?

A: Last-minute funding talks between Democrats and Republicans yielded little progress on Monday.

Q: Why are Democrats holding up negotiations?

A: Health care has become the sticking point for Democrats in these negotiations.

Q: What has the Massachusetts Office of the Comptroller instructed state departments to do?

A: The Massachusetts Office of the Comptroller has instructed department heads to develop “contingency plans” by the close of business Tuesday.

Q: What is the proposed change to the state’s HHS budget?

A: The proposed budget includes a $2.8 billion increase, bringing the HHS budget to $33.3 billion, but cuts may still be necessary.

Q: How large could federal Medicaid cuts be?

A: Federal programs, particularly Medicaid, are expected to face a $880 billion cut over the next decade, reversing years of progress in the state.

Q: How many people in Massachusetts rely on MassHealth?

A: Approximately 2 million people in Massachusetts depend on MassHealth, the state’s Medicaid program, which relies heavily on federal funds.

Q: What public health responses are being planned?

A: The Department of Public Health is creating a state vaccine purchasing program to address cuts to vaccination initiatives and other public health measures.

Q: Which mental health facilities are at risk?

A: There is concern over proposed closures of mental health facilities and programs, such as the Pocasset Mental Health Center and Pappas Rehabilitation Hospital for Children.

Quick Reference Table

Item Detail
Federal funding deadline The government is set to run out of money at 12:01 a.m. Wednesday unless a stop-gap funding measure passes.
Negotiation status Last-minute funding talks between Democrats and Republicans yielded little progress on Monday.
Primary sticking point Health care has become the sticking point for Democrats in these negotiations.
State contingency instruction The Massachusetts Office of the Comptroller has instructed department heads to develop “contingency plans” by the close of business Tuesday.
HHS proposed budget The proposed budget includes a $2.8 billion increase, bringing the HHS budget to $33.3 billion, but cuts may still be necessary.
Projected Medicaid cuts Federal programs, particularly Medicaid, are expected to face a $880 billion cut over the next decade, reversing years of progress in the state.
MassHealth dependence Approximately 2 million people in Massachusetts depend on MassHealth, the state’s Medicaid program, which relies heavily on federal funds.
Public health action The Department of Public Health is creating a state vaccine purchasing program to address cuts to vaccination initiatives and other public health measures.

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Additional Resources

STAFF HERE BOSTON WRITER
Author: STAFF HERE BOSTON WRITER

BOSTON STAFF WRITER The BOSTON STAFF WRITER represents the experienced team at HEREBoston.com, your go-to source for actionable local news and information in Boston, Suffolk County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as Boston Marathon, Head of the Charles Regatta, and Boston Harborfest. Our coverage extends to key organizations like the Greater Boston Chamber of Commerce and Associated Industries of Massachusetts, plus leading businesses in finance, biotech, and insurance that power the local economy such as Fidelity Investments, Biogen, and Liberty Mutual Insurance. As part of the broader HERE network, we provide comprehensive, credible insights into Massachusetts's dynamic landscape.

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