Advocacy in Action – Government Affairs Update

Advocacy continues to remain at the forefront of the North Central Massachusetts Chamber of Commerce’s efforts to advance the region and support our member businesses.

Federal Affairs

Trade Policy: President Donald Trump continues to utilize increased tariffs as part of his foreign policy, with frequent announcements, retractions, and pauses affecting various industries and countries. In May, the Trump administration backed away from the threat to impose 50% tariffs on imports from the European Union, extending the deadline from June 1 to July 9 to allow for continued negotiations between Washington and the 27-nation bloc. The administration also announced an agreement with China to temporarily suspend most tariffs on each other’s goods, with the trade agreement reducing tariffs between both countries from 145% to 30%. The Chamber actively monitors these rapidly evolving developments through our congressional delegation and partners with the U.S. Chamber of Commerce to advocate for member interests in trade policy discussions. We have engaged with member businesses to assess tariff impacts and continue ensuring local business concerns reach federal policymakers as these policies shift.

Tax Policy Updates: On May 22, the U.S. House of Representatives passed the “One Big Beautiful Bill Act” (H.R. 1), which now moves to the U.S. Senate for consideration. The comprehensive legislation extends and expands many provisions from the 2017 Tax Cuts and Jobs Act, including making the 37% top individual tax rate permanent, increasing standard deductions through 2028, and enhancing the Section 199A qualified business income deduction from 20% to 23%. Key business provisions include extending 100% bonus depreciation through 2029, making permanent the Section 163(j) interest deduction improvements, and restoring immediate deductibility of domestic research and development costs under Section 174 for tax years 2025-2029. The bill also raises the state and local tax (SALT) deduction cap to $40,000, introduces new $1,000 credits for children, and includes various business-friendly provisions such as increased depreciation limits and expanded opportunity zones. The Chamber has joined a nationwide coalition led by the U.S. Chamber of Commerce advocating for key business tax provisions in this legislation. This coordinated effort aims to provide businesses with long-term certainty, encourage continued investment, and support sustained economic growth.

STATE AFFAIRS

State Budget: The Chamber continues to closely monitor and engage the region’s legislative delegation throughout the state budget process to protect business interests and identify opportunities for our regional economy. On May 22, the Massachusetts Senate passed its $61.4 billion FY2026 budget, increasing state spending more than 6% over the current fiscal year, with nearly two-thirds of the increase attributed to higher MassHealth caseloads.

Like the House version, the Senate budget rejected Governor Healey’s proposed tax increases and maintains the state’s $8.1 billion stabilization fund without drawing from it. Both branches proceeded with typical spending approaches despite ongoing concerns about potential federal funding cuts, with Senate leaders stating they would not “freeze in place” waiting for clarity from Washington. Key differences between House and Senate versions include education funding levels, transportation investments, and policy provisions such as prescription drug price controls and liquor license reforms. A Conference Committee will now negotiate the final budget, with the Chamber advocating for provisions that support economic growth in North Central Massachusetts.

Housing: The Healey-Driscoll Administration continues implementing initiatives from their Affordable Homes Act to address the Commonwealth’s housing crisis. In April, they established the state’s first-ever Office of Fair Housing to support fair housing initiatives and collaborate with other agencies to advance fair housing policies and programs.

On May 14, the Administration’s Devens Housing Working Group unanimously approved their final report outlining strategies for increased housing production in Devens. The group was tasked with developing a plan to help meet the estimated 6,300 new homes needed in the region by 2035. Their detailed report examines zoning bylaw modifications to allow and promote housing development in the Devens Innovation and Technology Center, including adaptive reuse of historic buildings at Vicksburg Square. Given housing’s critical importance to regional economic development, the Chamber has been actively monitoring this process by attending public meetings and engaging with stakeholders.

The Chamber successfully partnered with the North Central Massachusetts Association of REALTORS® for our 8th annual Real Estate Summit, working closely with the administration to secure Ed Augustus, Secretary of the Office of Housing and Livable Communities, as a keynote speaker. Secretary Augustus briefed attendees on the Commonwealth’s first comprehensive housing plan and ongoing measures to achieve the ambitious target of creating at least 220,000 new housing units statewide by 2035. This summit provided valuable insights for our members on state housing policies and their potential impact on local development opportunities.

Energy: For years, the Chamber has advocated for meaningful solutions to reduce energy costs and increase competitiveness for North Central Massachusetts businesses, as our region continues to face the highest energy rates in Massachusetts. On the heels of an executive order targeting utility costs earlier this year, Governor Healey announced the Energy Affordability, Independence & Innovation Act in May at a press conference in Leominster that was attended by Chamber staff. The bill includes several key reforms: eliminating and reducing certain charges on utility bills, creating more accountability for utilities, preventing unnecessary costs from being passed to customers, and reducing barriers to new nuclear technologies. The administration estimates these changes will save Massachusetts customers approximately $10 billion over 10 years. We’re encouraged to see attention focused on this critical issue affecting both our families and businesses.

The Chamber has also been engaged on the state’s electric vehicle mandate, known as the Advance Clean Cars II (ACC II) rule. This rule originally required that 35% of new vehicle sales be electric or hybrid starting with 2026 models. In response to concerns raised by the Chamber and other business groups about market readiness and charging infrastructure, the state announced in May 2025 that it will provide manufacturers with a two-year grace period for 2026 and 2027 model years. During this period, manufacturers must still make traditional vehicles available to dealers and report on their efforts to promote electric vehicles and expand charging networks. The state will also provide additional funding for public fleet electric vehicles and charging infrastructure. The Chamber continues to monitor to ensure it balances environmental goals with practical business and consumer needs.

Workers’ Compensation: In Mid-May, the Massachusetts Commissioner of Insurance Issued a decision rejecting a proposed 7.1 % increase in the cost of workers’ compensation insurance in Massachusetts for the period beginning July 1, 2025. According to the Healey-Driscoll Administration is expected to save Massachusetts businesses nearly $80 million.

State Elections: The 2026 Massachusetts gubernatorial race continues developing with Governor Maura Healey announcing her reelection bid in February, followed by two former Baker administration officials launching Republican campaigns: Mike Kennealy in April and Brian Shortsleeve in May. Kennealy, former Housing and Economic Development Secretary, focuses on affordability, education, and transportation issues, while Shortsleeve, former MBTA chief administrator, emphasizes cutting spending and reducing taxes. Other potential Republican candidates include Worcester County Sheriff Lew Evangelidis and attorney John Deaton. State Senator Peter Durant has confirmed he will not pursue a gubernatorial run, choosing instead to focus on his reelection to the legislature. The election is scheduled for November 2026.

Civic Engagement Programs: In April, our Community Leadership Institute class participated in an immersive State House experience, including tours of both legislative chambers guided by Senator Cronin and Representatives Higgins, Kilcoyne, and Zlotnik. The class engaged with high-ranking officials including Secretary of State Bill Galvin, former Economic Development Secretary Yvonne Hao, Tourism Director Kate Fox, and former legislator Jen Flanagan during a leadership roundtable discussion. Additionally, our Director of Public Affairs, Travis Condon, participated in the 89th Citizens’ Legislative Seminar at the State House after being nominated by Senator John Cronin. The two-day program covered legislative history, processes, budgeting, and included simulated hearings and Senate sessions. These educational opportunities strengthen our understanding of the legislative process and enhance our advocacy efforts on behalf of regional business interests.

LOCAL AFFAIRS

Sterling Zoning: Following a detailed process that included resident and stakeholder input, Sterling’s town planner and Planning Board developed updated zoning to enhance economic development, aligned with One North Central priorities. The Chamber submitted testimony supporting three key changes to streamline permitting and double potential commercial space through updated performance zone regulations. Town residents voted in favor of the changes at their Annual Town Meeting in May.

The Fairgrounds: In April, the Chamber announced support for the proposed Fairgrounds development in Leominster. Support for the project came following a review of the economic impact analysis, infrastructure improvements, traffic studies, and current project plans, and its alignment with our One North Central Regional economic development plan. The project has the potential to serve as an anchor attraction to support tourism growth, offer economic competitiveness with infrastructure improvements and transportation enhancements, and transform an environmental liability into a community asset while generating economic activity for the region.

Government Affairs Committee: The Chamber’s Government Affairs Committee is reviewing the current public policy agenda and will present potential changes at their next meeting with the intention of bringing an updated version, if necessary, before the Chamber’s Board of Directors in September.

Stay Informed and Engaged: The Chamber’s advocacy work on federal, state, and local levels directly impacts your business environment. We continuously represent member interests in policy discussions to foster economic growth and reduce regulatory burdens. We encourage you to stay engaged with these important issues and share your feedback on how government policies affect your business.

For more information about any of these government affairs updates or to discuss specific policy concerns, please contact Travis Condon, Director of Public Affairs at 978.353.7600 or via email at .

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