BOSTON (WPRI) — The state of Massachusetts has to hand over $2.1 billion to the federal government because of a mistake made years ago. Gov. Maura Healey's office said the mistake was made under the previous Charlie Baker administration, who mistakenly used federal pandemic funds to cover unemployment benefits. Starting this December, the state will pay back the money over the next decade. Anyone who received jobless benefits during that time will not be anticipated. Healey said her administration negotiated with the U.S. Labor Department over the past year and a half to reduce the state's tab, which could have been more than $3 billion with penalties and interest. Under the new agreement, principal payments will come from the unemployment insurance trust fund, which is funded by a tax on employers and is then used to pay benefits. Interest payment will instead come from the state's general fund. Healey's office said businesses will not face higher rates on their unemployment insurance payments through at least the end of 2026. Close Thanks for signing up! Watch for us in your inbox. Subscribe Now Daily Roundup SIGN UP NOW