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2026 Massachusetts Business Outlook

PRESS RELEASE

FOR IMMEDIATE RELEASE
January 21, 2026

Media Contacts:

Casey Baines [email protected]

Mattie Holloway [email protected]

Greater Boston Chamber of Commerce President & CEO James E. Rooney

Delivers 2026 Massachusetts Business Outlook Address

Public Policy Priorities include

Affordability, Competitiveness, Energy, Transportation, Education, and Technology

BOSTON, MA – The Greater Boston Chamber of Commerce President & CEO James E. Rooney delivered the Chamber’s annual Massachusetts Business Outlook address, offering an assessment of the Commonwealth’s economic landscape and outlining a public policy agenda designed to strengthen the region’s affordability, competitiveness, and economic growth.

Rooney emphasized that while Massachusetts continues to set the national standard in quality of life, education, healthcare, and innovation, rising costs and policy uncertainty threaten the state’s ability to sustain national and global leadership.

“When I meet with CEOs and political leaders around the country, the successes of Boston and Massachusetts inspire and motivate them,” said Rooney. “We set the gold standard across industries and sectors.”

Prioritizing Affordability & Competitiveness

Rooney highlighted the complex and interconnected pressures that businesses face, including rising operating costs, federal policy shifts, and a regulatory environment that is increasingly unpredictable. However, while global and national politics play a role, state and local public policy can advance the regional business climate.

“Tax and regulatory policy, controlling spending, economic development initiatives that create jobs, housing and energy affordability, and education programs are areas where local and state governments can make a meaningful difference,” said Rooney.

Housing Affordability

Housing affordability in Massachusetts continues to be a problem, especially for our middle class and our workforce, which has been left out of the housing discussion. Rooney urged a continued shift in mindset toward policies that enable housing production, instead of restricting it. Policy proposals like rent control, transfer fees, rigid inclusionary development mandates, and local zoning are delaying projects and disincentivizing private investment.

“Our region needs to continue to change its mindset regarding housing. The Affordable Homes Act was a good start, but we will produce more housing when the private housing market is empowered, not restricted,” Rooney said. “We need to get out of the way and unleash the private market to build more housing of all types, not stifle it. We need government to create the infrastructure and access to utilities needed to incentivize housing production.”

Energy: Powering the Commonwealth

Massachusetts has some of the highest energy rates in the country. Policymakers have rightly focused on developing new clean generation resources in recent years to create alternatives and help address climate change. But the roadmap is at a critical juncture.

Rooney highlighted that Massachusetts can lead. The Commonwealth can be the model for clean energy and innovation while advancing affordable solutions.

“In addressing our energy future, we cannot just dismiss the cost impacts on our businesses and people. Our policy decisions have real impacts on what you pay on your electric or gas bill, and those impacts are growing. That’s why we need balance,” Rooney explained. “We need a balanced practical approach with achievable goals. If we fail to strike that balance, we risk burdening employers, slowing growth, and undermining the very competitiveness that defines Massachusetts, and we risk making the consumer affordability issue even worse.”

Transportation

While the state has turned a corner on transportation in some ways, we are not where we need to be. The Commonwealth must stay focused on improving reliability and convenience in public transit systems throughout the state. Riders need a system they can depend on and trust to get them to work, school, and home to their families. At the same time, we need to articulate a bold vision for our transportation future across the entire Commonwealth.

This is not only about Boston. This is about creating a system that connects every person and benefits every corner of our state. Better public transit systems, big and small, strengthen the entire Massachusetts economy, bring workers to jobs, reduce congestion, and make our state more competitive, further enhancing our quality of life.

Rooney emphasized that “we still have work to do. This is why we are calling on the Legislature to continue to prioritize mobility across the state. The income surtax was designed to invest in our future. It is time to split those funds 50/50 between education and transportation. Let’s build a transportation system worthy of the Commonwealth and worthy of the people who call it home.”

Education: Protecting a Defining Strength

Despite massive amounts of increased funding through the Student Opportunity Act and the income surtax, student achievement in Massachusetts and public-school enrollment are declining. This should concern all of us.

The Commonwealth’s public schools have always been the best. As a result, Massachusetts has the most talented workforce in the country.

“The state must adopt a statewide graduation standard to ensure students receive a high-quality education regardless of which school district they live in. We cannot have an inconsistent patchwork of local standards, projects, or grades,” Rooney said. “We must ensure that our Commonwealth remains a leader in education for generations to come.”

The Future of Technology & Regulation

Industries are evolving rapidly, but government must avoid rushing to regulation extremes. Thoughtful boundaries are welcome, but hasty overregulation can stifle home-grown innovation, undercutting one of the Commonwealth’s greatest strengths. If the Commonwealth imposes overly restrictive rules, we risk discouraging investment and slowing the pace of technological advancement while other states and countries move forward.

Data does not respect state lines, and AI technologies are deployed globally. For this reason, the Chamber believes these issues are best addressed through federal regulation, ensuring consistency and clarity across jurisdictions.

“As innovation and technology move forward at a rapid pace, we must develop regulations that do not drive businesses away.” Rooney said. “We can and must strike the right balance: protect consumers while preserving the innovative spirit that defines our Commonwealth.”

Building a Competitive, Resilient Economy

Competitor states are positioning themselves as business-friendly destinations, prioritizing jobs and economic growth. Through government fiscal discipline, lower taxes, targeted marketing campaigns, and investments in infrastructure, these states are proactive and effective. They count on our complacency to attract residents and businesses.

“If we fail to act, we risk losing talent, businesses, investments, and ultimately our economic edge. We need to reduce barriers and create strategic pathways for growth,” Rooney said. “Together, we can build a resilient, competitive economy, one that creates jobs and economic mobility throughout Greater Boston and the Commonwealth.”

The video of the 2026 Massachusetts Business Outlook is available here.

Download the PDF of the Massachusetts Business Outlook speech here.

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