As the House prepares to release its budget, the shadow of Trump’s Washington looms large
By Sam Drysdale
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"Decimated." "Wreaking havoc." "Chaos."
Once again the whims of Washington D.C. dictated what happened on Beacon Hill this week, and Bay State Democrats were rhetorically swinging more freely against President Donald Trump.
State lawmakers and Gov. Maura Healey are playing defense against an opponent whose next move they can't anticipate. And the annual state budget can't escape that unremitting cloud of "uncertainty."
"I feel like we're trying to budget on quicksand at the moment," Rep. Lindsay Sabadosa said Monday during one of the final hearings before House Democrats roll out their rewrite of Gov. Maura Healey's spending plan.
In the volatile environment marked by tariff, trade and recession talk and stock market turmoil, House Speaker Ron Mariano announced this week that the House in its budget plan will take close to $400 million of revenue off the table by cutting all of Healey's proposed tax changes for fiscal year 2026.
"I didn't feel it was the time," he said, adding that he was "nervous" about being able to hold the line on taxes.
The announcement that the House would scrap the tax proposals was met with applause from business leaders at the Greater Boston Chamber event where Mariano made the announcement. While the speaker was celebrated for the move on Thursday, it will leave his chamber with less options to spend on programs.
The House budget set to be unveiled next week will be smaller than Healey's, he said, and many line items will be level-funded, disappointing the activists who have ramped up their advocacy pitches for funding increases.
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| | Billions of Medicaid dollars at stake | |
Health and Human Services Secretary Kate Walsh warned Monday that proposals from Trump and Congressional Republicans to cut Medicaid could threaten the state's budget.
A plan being considered in Congress "would likely translate into billions of dollars of cuts for MassHealth for next year," Walsh said during Monday's budget hearing, and "will force some very, very difficult choices."
The threat to Medicaid reimbursements, which make up about $15 billion of the state's budget, has loomed over most budget conversations this year. But lawmakers may not know exactly what will happen for months, and are planning to pass their spending bills in April or May but mindful that they may need to circle back.
"We still don't know what's going to happen. So we could be back in September or October making changes," Mariano said Thursday.
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As "uncertainty" comes up time and time again, the governor experienced real-time public whiplash of the quickly changing winds on Wednesday.
Healey was partway through a closed-door meeting with Cabinet secretaries and business leaders about the impact of Trump's sweeping tariffs, when the president suddenly reversed course and paused most of his plan.
The pre-planned press conference that followed suddenly also became about the fresh news of the about-face, and the governor shared that she learned about the president's change in plans in the midst of the roundtable.
The pause mattered to the markets, based on the response to Trump's social media post, but Healey argued that the pause "doesn't matter... because we are still left in a state of chaos and uncertainty."
Trump says he will pause for 90 days on the tariffs he rolled out, replacing them in that span with a universal 10 percent tariff rate. However, the move did not apply to China. Trump instead increased the tariff rate there to 125%.
"The fact remains: we do not know what is going to happen next," Healey said. "This is causing considerable harm to our residents, to our economy and to our businesses. At the end of the day, I wish somebody could reach the president and get him to stop, because enough is enough. We cannot continue to have our economy in Massachusetts and around this country held hostage. We cannot continue to gamble with people's livelihoods. There really is no excuse for this chaos."
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As Democrats knocked Trump for prioritizing tax cuts for the wealthy, the House was advancing $1.3 billion to invest in education and transportation initiatives. The bill spends about $1.18 billion in surplus revenue from the state's income surtax on high earners is tied to next week's House budget rollout.
The underlying bill went "very heavy on transportation," Aaron Michlewitz said earlier this week, with $828 million directed towards transportation, and mostly headed to the cash-strapped MBTA. An additional $353.5 million would be sent to education programs.
Representatives filed 142 amendments to the House Ways and Means Committee bill, but only two rose to a debate.
Republicans forced a debate on two amendments: a Rep. Joseph McKenna attempt to reduce the one-time injection to the T by $50 million and redirect it to local bridge and road repairs; and a Rep. John Gaskey amendment to ban transgender students from playing sports on teams consistent with their gender identity.
The McKenna amendment was rejected on party lines, and Gaskey's was shuttled to a likely dead-end study.
Meanwhile, Mariano and Michlewitz warned that earmarks might be granted more conservatively than in previous years.
"We've been very cautious and made sure that the members understand that we're treading on thin ice," Mariano said. Michlewitz added, "In relation to earmarks, it's a sense that even if we are able to do potential earmarks, it's not necessarily a guarantee we would see them through the entire process. Because I think a lot will depend on how the federal government, the uncertainty around the federal government, and how we handle that going forward."
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Saturday
-Latin American Business Expo: 10th anniversary event with 80+ businesses. Reps McGovern, Kennedy, LeBoeuf attending. (12–4 p.m., DCU Center, Worcester)
-Education Justice 5K: Hosted by the Petey Greene Program; Josh Kraft attends. (1 p.m., Artesani Playground, Boston)
-First Hike: Over 150 Scouts will lead the first hike of Concord’s new Minutemen’s Surprise Trail, marking the 250th anniversary of the Battle of Old North Bridge. (1 p.m., 231 Liberty St., Concord)
Sunday
-Markets & Trade: Prof. Peter Cohan joins Jon Keller to discuss trade wars. (8:30 a.m., WBZ-4)
-Michlewitz on OTR: Budget talk with Rep. Michlewitz. (11 a.m., WCVB-5)
-Phil Johnston Memorial: Celebration of life with remarks from Markey, Kennedy, others. (1 p.m., UMass Boston)
-413 Day: Lt. Gov. Driscoll & Easthampton mayor join NEPM’s community event. (1 p.m., CitySpace, Easthampton)
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