Trump’s attack on Massachusetts and what we can do about it (Part 1)

Dear , With the federal government shut down and an unclear path forward to stop cuts to Medicaid, the Affordable Care Act, and other healthcare programs, I want to shine some light on the magnitude of the federal cuts’ impact on Massachusetts, and what we can do about it.  I serve on the Federal Funding, Policy, and Accountability Committee and what is clear is that Trump’s attacks on Massachusetts residents cut deeper and further beyond what the news is able to cover. In addition to the direct impact, all of these cuts reverberate throughout our communities. This newsletter is part one of a multipart series to break down the direct financial impact on Massachusetts and what we can do about it, starting with the big picture and recent proposals, both good and bad. It may be hard to believe but despite the impending damage of the cuts from the federal government, a group of CEOs and c-suite executives are pushing for additional deeply harmful cuts to our state budget through a ballot measure. I’ll discuss this in this newsletter as well. First, I’ll answer the question, given the ongoing unraveling of the federal government, how much does that directly impact us in Massachusetts? At the state level, $16 billion or 25.9% of our annual state budget is composed of federal funds. The only other revenue source larger in magnitude than this is the Income Tax, which is 5% on most types of income. If you earn over a million dollars a year, you pay an additional 4% on every dollar earned over $1 million.  In addition to the $16 billion in the state budget, another $5 billion in federal grants support the administration and operation of state agencies and departments, but flow outside of the state budget and another $1.5 billion of federal funds is spent on the state’s Capital Investment Plan, which funds largely state infrastructure investments. For our cities and towns (or local government), $1.1 billion of federal funding goes directly to municipal budgets largely related to education, public safety, and infrastructure. To sum it all up, the federal government has $23.6 billion in leverage over our state and local government budgets. As a point of comparison, the state budget proposed by the legislature and the governor this past summer was $60.9 billion, for the City of Somerville alone $380 million (for Boston it is $4.8 billion, and for Cambridge it is $991 million). While the above only covers federal funding for our state and local government, the federal government also funds research and development that impacts non-profits (such as universities and research centers) and the private sector. As an example in healthcare, Massachusetts receives the highest amount of National Institute of Health grants per capita at $3.5 billion in 2024. I share these figures because I want to be realistic and candid about what it is going to take to support our communities and offset potential cuts from the federal government. While we are still figuring out how large and exactly which cuts will actually take place, I want to respond to two sets of inquiries I’ve received. I also want to put into perspective what we have done, including the good, the bad, and the ugly, in the past few years in ensuring our state has resources to support our communities. I’ve received a few inquiries from voters asking me and other legislators to use the earmark process to protect Somerville from the cuts. The reality is, these gargantuan multi-billion dollar cuts are not going to get resolved through earmarks which are typically $25,000 to $100,000 each. All earmarks combined among all 200 legislators are worth $125 million. Putting aside all of the systemic problems with the earmark process (you can read about that in the Globe), we are going to need stronger interventions if we want to protect our most marginalized neighbors from these cuts. Another set of inquiries I’ve received is, can’t the state or local government just get more efficient? While I can sympathize that there are wasted resources in government, for example, I think spending $360 million dollars on a medium security women’s prison without any exploration into alternatives to incarceration is wildly wasteful and irresponsible, for most sectors of the government, I have yet to see a realistic or reasonable proposal for “more efficient” ways to meet needs while also making such significant cuts. Decades of unrealistic budget proposals have deep long-term consequences. It is why educators, social workers, public works staff, and many others are grossly underpaid. As such we end up paying a higher cost through staff burnout, high staff turnover, and paying 2-4x more for contracting non-unionized services (this is especially a problem in Somerville, which until recently had some of the lowest paid Department of Public Works staff in the region). It is also how we end up with a $24.5 billion backlog in repairs for the MBTA. Ultimately everyone who relies on public services pays the price for austerity. So what has been done recently on budgets and what is being proposed in the near future? In terms of recent changes to how our state collects revenue, apart from our tremendous victory for the millionaire’s tax or the Fair Share Amendment, which was passed as a ballot question with 79% of voters in Somerville voted in favor of, Governors and legislative leaders have largely cut taxes in very regressive ways. What’s been done recently, the good, the bad, and the ugly: Add $2.3 billion per year, Millionaires tax (2022) - Massachusetts voters voted in favor of a 4% surtax on income over $1 million. Although state taxes are regressive, in that lower income earners pay a greater share of their earnings in taxes than higher income earners, this change took a massive step towards making our tax code less regressive. Subtract $1 billion per year, Gov Healey’s tax cuts (2023) - Shortly after taking office, Gov Healey pushed forward a $1 billion tax cut as her top priority. I was the only legislator on the Revenue Committee to publicly criticize this proposal on the grounds that it is taking a massive step back from the will of what Massachusetts voters voted in favor of just a few months earlier. You can read more about it in my previous newsletter. Subtract $2.9 billion, Gov Baker’s 62F tax handout (2022) - this is an artificial limit on tax revenue that disproportionately benefits wealthy individuals. You can read more from the Mass Budget Policy Center. This law was passed in 1986 by the same group who passed Prop 2.5 in 1980 (Citizens for Limited Taxation). Subtract ~$400 million per year, GILTI tax cut for multinational corporations (2018) - this is a tax cut on offshore assets and is also a deeply regressive tax cut. This was passed during an informal session with almost no legislators in the room, no vote. You can read more from the Mass Budget Policy Center. What is being proposed, the good and the two AWFUL ballot question proposals:  Add back ~$400 million, reverse the GILTI tax cut - This is a bill I formerly filed along with Rep Barber that is currently Raise Up Massachusetts’ top priority legislation to address the federal shortfall. Raise Up Massachusetts (the same coalition of unions and community groups that won the Millionaire’s Tax) is organizing a Protect Our Care Town Hall: Stop the Cuts with Corporate Fair Share. Join us on Thursday. Subtract ~$4.5 billion, ballot question proposal to cut the income tax put forth by corporations - the Massachusetts High Tech Council and the Pioneer Institute (Koch brother backed small government group) is proposing to lower the Income Tax from 5% to 4%. This would decrease the state budget by $4.5 billion (or 1/5th of the revenues from the income tax). This is truly a nuclear proposal. Limit revenues through 62F - another ballot question put forth by Massachusetts High Tech Council, the Pioneer Institute, and the Retailers Association of Massachusetts would change the formula for the 62F cap on revenues so that instead of the law applying twice in the past 40 years (which cost the state 2.9B in 2022), with the new formula, it would have been implemented 24 times in the past 40 years. These are some very sobering figures, especially when put into the context of the imminent and uncertain cuts from the federal government. Among all of the issues Somerville residents and advocacy organizations advocate for, the vast majority of which involves needing public funding and investment. Yet cutting taxes rarely evokes enough public outrage for the damage it does, as such regressive tax cuts are too politically easy for powerful politicians and CEOs / c-suite execs of large corporations to get away with. We will need to continue to organize and build a much broader movement to protect Massachusetts residents from these cuts. Please join us this Thursday, October 9 at 6:30pm at the St. James’ Episcopal Church in Porter Square (1991 Massachusetts Ave) for the Protect Our Care Town Hall. Upcoming Events Protect Our Care Town Hall: Stop the Cuts with Corporate Fair Share Massachusetts is facing the threat of deep federal budget cuts that will cost the state billions and hurt our healthcare, food assistance programs, education, infrastructure, and other public services. That’s why Raise Up Massachusetts is calling for a thoughtful use of state reserves and new revenues to protect our essential services. Key to that discussion is RUM's Corporate Fair Share proposal to combat offshore tax avoidance by asking the world’s most profitable mega-corporations to pay their fair share. It’s the fairest, simplest, and most popular way to defend public services like healthcare and education that we all rely upon! Join us this Thursday, October 9, at 6:30 pm, at St. James' Episcopal Church in Porter Square (1991 Massachusetts Avenue). Sign up here! Ward 5 Coffee Chat Mark your calendars for office hours, Saturday, November 1st from 10AM-12PM with Sen. Jehlen, Ward 5 City Councilor Naima Sait, and Ward 5 School Committee Laura Pitone at Zaruma Gold Coffee at 37 Woodbine Street! Event updates on Beacon Hill and in Somerville Wrongful Conviction Day Briefing It was truly a joy to reconnect with Eddie Wright who won his freedom and exoneration this summer after 41 years in prison for a wrongful conviction that should have been overturned decades ago. Welcome home Eddie! We learned about legislation to prevent unspeakable injustices at the Wrongful Conviction Day Briefing. One of the leading causes of wrongful convictions is still legal in Massachusetts: coerced false confessions. Massachusetts is among 39 states where there are no laws preventing police from lying during interrogations. We must take action to stop these coerced confessions that lead to so many wrongful convictions. Thank you to the New England Innocence Project, Sen. Jehlen, and Rep. Lipper-Garabedian for hosting this event! 2025 Latino Excellence on The Hill I had the honor of presenting Jennifer Ochoa with the 2025 Latino Excellence on The Hill award for her work with the Somerville Family Learning Collaborative providing housing support and wrap-around services for students in Somerville Public Schools Thank you to the Massachusetts Black and Latino Caucus for hosting this event again! Rally to Free Hernan Elias Escobar Grateful to join the rally to Free Hernan last week and to stand in solidarity for the collective demand of our elected officials, community and labor leaders, and neighbors to immediately bring Hernan Elias Escobar home and with his family. It was truly harrowing and moving to hear Hernan’s wife and cousin speak about what happened and how much this community means to them. Grateful to LUCE Hotline and for the Greater Boston Legal Services for organizing this rally and for all they do to protect our neighbors. As always, it is a joy and honor to serve you in the Massachusetts House of Representatives. Please don’t hesitate to reach out if you have any questions, concerns, or ideas! Follow on Instagram! Follow on Bluesky! Follow on Tiktok! Yours in service, Erika Committee to Elect Erika Uyterhoeven 11 Wesley Park Somerville, MA 02144 United States Campaign website: www.ElectErika.com If you believe you received this message in error or wish to no longer receive email from us, please (Unsubscribing is not supported in previews).