The Welfare State: Where did 30 billion dollars go?

Most Massachusetts taxpayers have no idea that nearly $30 billion of their money is being spent on welfare programs.

Every year, Beacon Hill debates bigger budgets, new spending programs, and expanded government benefits. Politicians assure taxpayers that everything is under control, as agencies highlight successes and special interest groups demand even more spending.

But very few people stop to ask: Where is all the money going?

The Fiscal Alliance Foundation recently set out to answer that question.

In a new study, “The Welfare State: How Massachusetts’s Welfare Programs Have Grown Out-of-Control,” we pulled back the curtain on welfare spending in Massachusetts. Authored by visiting policy analyst Hayden Dublois, the study provides a comprehensive analysis of welfare spending in the Commonwealth and highlights significant concerns about growth, oversight, and long-term sustainability.

Hear our interview with Hayden here: 

Welfare spending has ballooned far faster than taxpayers’ ability to pay for it. In total, Massachusetts spent nearly $30 billion on welfare programs in 2024 alone, while nearly $1 out of every $4 of Massachusetts’s budgetary expenditures goes towards Medicaid. The state has one of the most expansive welfare systems in the nation, with the highest SNAP and TANF enrollment and the second-highest Medicaid enrollment in New England. This stands in marked contrast to neighboring states like New Hampshire, whose enrollment rate is nearly one-third of Massachusetts’. 

Even more troubling than these numbers was what the study uncovered about oversight. In the past decade, SNAP enrollment has surged 40 percent, growing from just under 785,000 recipients in 2015 to more than 1.1 million today. More than $1 billion in benefits were issued improperly between 2022 and 2024 alone, giving Massachusetts a SNAP error rate of 14.1 percent – the highest error rate in all New England and one of the highest in the country.

The study also highlights serious concerns about fraud, including a whistleblower account describing “rampant” abuse and a system where basic eligibility verification is often discouraged. At the same time, between 65 and 75 percent of able-bodied SNAP recipients are not working, and state policies still allow individuals to qualify for benefits regardless of how much they have in the bank.

Under new federal rules, states with error rates above 6 percent will soon be required to share in the cost of those errors. That means Massachusetts taxpayers will be on the hook for hundreds of millions of dollars more if Beacon Hill doesn’t begin to take responsibility for the problem they enabled.

At the same time, recent audits uncovered millions of dollars in improper Medicaid payments, including payments involving duplicate IDs, deceased recipients, improper transportation reimbursements, and questionable telehealth billing practices.

Housing and homelessness spending tells a similar story. HomeBASE spending alone has increased more than 200 percent since 2022, and emergency shelter costs are approaching $1 billion annually. Yet despite these enormous expenditures, taxpayers are rarely given a complete picture of how these programs operate or whether they are effective. 

That is why the Fiscal Alliance Foundation conducted this study – to ask the questions that Beacon Hill refuses to ask. The study found that taxpayers are being asked to fund a system where fraud is ignored, safeguards are weakened, and accountability is treated as optional. That is unacceptable.

But the reality is that this study would never have happened without the generosity of supporters like you. It was made possible by individuals who believe Massachusetts taxpayers deserve transparency, accountability, and honest answers.

The study has already generated discussion about fraud prevention and program oversight, providing lawmakers, journalists, and taxpayers with a new, true picture of where tax dollars are going. Since its release, the study has received coverage from numerous media outlets like the Boston Herald and MassLive, helping bring greater public awareness to the need for stronger accountability. 

Our work is just beginning. This summer, the USDA will release SNAP payment error rates from 2025, and we intend to conduct more research on what these numbers mean for Massachusetts residents. The welfare system is just one area where taxpayers deserve transparency, and the Fiscal Alliance Foundation intends to keep asking questions and finding answers.

Independent research of this caliber takes time, expertise, and resources. The organizations advocating for ever-expanding government spending are well-funded and well-organized, and taxpayers need someone fighting just as hard on their behalf.

That is exactly why we are asking for your support today.

Whether it is $100, $250, $500, $1,000, $2,500, $5,000, or more, your gift will help fund future research projects that expose waste, promote accountability, and ensure taxpayers have a voice in where their money goes.

You can make a secure online contribution here: fiscalalliancefoundation.org/contribute. If you prefer to mail in a donation, please do so at: Fiscal Alliance Foundation, 31 State Street, Suite 401, Boston, MA 02109. Donor-advised funds and stock contributions are gladly accepted, and as always, your generosity remains strictly confidential.

With your support, the Fiscal Alliance Foundation can continue shining a light on the issues that matter most to Massachusetts taxpayers.

Thank you for standing with us.