Massachusetts Owes The Federal Government $2.1 Billion. Here's Why.

CBS Boston

January 21, 2025

BOSTON - Massachusetts Gov. Maura Healey announced Monday that the state has agreed to repay the federal government $2.1 billion because of a mistake made years ago with pandemic-era unemployment benefits.

An audit revealed "an improper overdraw of federal pandemic unemployment benefits," a statement from the governor's office said. Healey said that former Gov. Charlie Baker's administration "misspent billions of dollars in federal relief funds" on unemployment payouts that were supposed to be covered by the state.

Healey said her administration has negotiated with the U.S. Labor Department for the past year and a half to reduce the state's tab that could've been more than $3 billion with penalties and interest. Starting in December, Massachusetts will pay the money back over a 10-year period. Anyone who received jobless benefits during that time will not be impacted, Healey's office said.

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