Sequestration Cuts Felt Deeply in Massachusetts, Reports Says

Catherine Breen

The two-year budget deal that cleared the Senate this week may stave off sequestration, at least for a while, which is good news for Massachusetts, although the economic impact of cuts has been significant. A new report released by the University of Massachusetts’ Donahue Institute says that sequestration accounted for lost federal funding of $1.3 billion in FY13 in Massachusetts alone and also cut more than 11,000 jobs from the Massachusetts economy. The report notes that the federal funding cuts from sequestration will continue to reverberate through the Massachusetts economy, even with the recent bipartisan agreement, and generate impacts beyond the immediate loss of federal funding. Massachusetts garners a significant share of federal funding because of the plethora of universities, hospitals, and research institutes. According to the report, Massachusetts, in per capita terms, brought in five times more NIH and three times more NSF dollars, respectively, than the national average.