Massachusetts to repay $2.1 billion in misused pandemic funds from Baker administration

Massachusetts will repay $2.1 billion to the federal government over ten years due to misused pandemic relief funds by the previous Baker administration. This issue was discovered shortly after Governor Maura Healey took office in 2023. An audit revealed that federal unemployment benefits were improperly used, creating a significant liability for the state. The repayment plan was negotiated to reduce potential costs, which could have exceeded $3 billion. Payments will start in December, funded by the state's Unemployment Insurance Trust Fund. Governor Healey has called for a review of the unemployment insurance system to address its long-term solvency and potential reforms.