Healey Misses on Getting Fed Forgiveness on $2.5 Billion

Despite making optimal relations with the Federal Government a centerpiece of her administration,  the governor's effort to get a lifeline on a $2.5 billion IOU has fallen short. Now, it appears the Biden administration will let the Trump administration make the call on whether Massachusetts owes the federal government up to $2.5 billion over an unemployment aid error.

A U.S. Department of Labor spokesperson said Friday, the last business day before President-elect Donald Trump takes office, that the agency is still in talks with Massachusetts officials over how to resolve billions of federal dollars the Bay State mistakenly used to pay jobless benefits it should have covered itself.

"DOL continues to be engaged in a resolution process with the state regarding the issue of overdrawn federal funds that was identified in the state's Annual Comprehensive Financial Report," the spokesperson said.

It's been more than 18 months since Gov. Maura Healey and her deputies revealed that, under former Gov. Charlie Baker, Massachusetts errantly used $2.5 billion in federal funds to cover UI benefits that should have been paid by the state.

Since then, neither state nor federal officials have said whether Massachusetts will need to repay some or all of that amount, pointing to ongoing discussions.

Some commentators have questioned if the Trump administration might be less likely to let Massachusetts, with its all-Democrat Congressional delegation and a vocal Trump opponent in the corner office, off the hook than outgoing President Joe Biden.