Massachusetts aims to be the “cornerstone of the defense industry,” with Governor Maura Healey announcing nearly $47 million in government funding for defense-related projects. Last year, the Department of Defense ranked Massachusetts ninth out of the top ten states in total Defense spending in FY2023, and the state is aiming to expand its investment in national security with the following newly announced funding streams:
- $25 million: State and local funding in partnership with the City of Lowell to support the construction of the Integrated Microelectronics Production & Advanced Chip Technology (“IMPACT”) Center, as part of a public-private partnership to develop the Lowell Innovation Network Corridor (“LINC”).
- $11.4 million: Federal and state funding to develop cutting-edge solutions by supporting the Army’s Natick Soldier Systems Center, and providing scale up funding support to Massachusetts small businesses working on innovation projects at Hanscom Air Force Base.
- $10.2 million: Grants to nine organizations under the Supporting Chip Advancement from Lab to Enterprise (“SCALE”) Capital Program to promote and strengthen Massachusetts’s microelectronics ecosystem.
Governor Healey is seeking to grow the state’s defense industrial base by toggling a variety of additional levers, including issuing an executive order for executive offices to “identify opportunities to create new economic growth for defense sector organizations in Massachusetts and to increase support for individuals seeking to navigate state agency defense sector initiatives.” Each office is to report back within six months (i.e., by April 27, 2026) with their findings.
Governor Healey also launched the Massachusetts Strategic Hub for Innovation, Exchange and Leadership in Defense (“SHIELD”), as informed by the Military Asset & Security Strategy Task Force (“MASS-TF”), a new initiative to strengthen the state’s defense leadership and accelerate the development of cutting-edge national security solutions. A SHIELD Working Group will advise the Governor on advancing the defense industry in the state. The Governor also announced a new defense industry sector focus within the Executive Office for Economic Development (“EOED”)’s Business Front Door Navigator to connect defense companies and organizations with state resources and growth opportunities. With these investments and new initiatives, Massachusetts is aiming to expand on its trajectory as a go-to location for defense investment, as it has been for life sciences and climate technology industry investment.