What I learned on my summer vacation: the Mass. economy edition

This column is from Trendlines, my business newsletter that covers the forces shaping the economy in Boston and beyond. If you’d like to receive it via email on Mondays and Thursdays, sign up here.

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Okay, folks, it’s back to work after a vacation break. What did I miss?

Well, gas prices in Massachusetts climbed back above $4 a gallon, up 13 cents in the past week, as the US-Iran war turned hot again.

Investors turned cold on tech stocks, including Elon Musk’s SpaceX, which lost $1 trillion in market value and is trading below its initial public offering price. And on Monday morning, soccer fans everywhere were coming down from the high of the just-completed World Cup. (¡Enhorabuena La Roja!)

But I’d like to zoom in on some local developments during the two weeks I was tried — unsuccessfully — to ignore the news. They’re important because they underscore a recurring Trendlines theme: the opportunities and challenges that lie ahead for the Massachusetts economy.

Let’s start with the good news.

The Massachusetts Port Authority approved a preliminary plan for a major remodeling and expansion of Logan Airport’s Terminal C, a 1960s-era building that is used primarily by JetBlue Airways.

Why it matters: It’s a billion-dollar vote of confidence by JetBlue and its partner, Vantage Group, in Boston remaining a key tourist and business travel hub.

The details: Vantage Group is set to finance the renovation, taking a cut of lease payments and concession revenue to recoup its costs. Vantage led the rebuilding of LaGuardia Airport’s main terminal, a $5.1 billion undertaking that was finished in 2022.

“At this point, Massport is not contemplating putting any dollars in,” said Richard Davey, the authority’s CEO.

The risk: JetBlue has hit a lot of financial turbulence. It lost money in each of the past five years (total red ink: $2.25 billion) and is carrying $8.6 billion in long-term debt. Massport has a lot riding on JetBlue’s future.

After a prolonged lull, biotech companies are going public at a robust clip — and Massachusetts is leading the pack.

Ten biotechs have completed initial public offerings this year in deals raising at least $200 million. Eight are based in the Boston area, the Boston Business Journal reported, and together they brought in $3.2 billion — closing in on the local full-year record of $3.9 billion in 2020.

Why it matters: IPOs allow biotechs to raise the large sums needed to fund clinical trials, while also giving early investors a way to cash out and recycle that capital into the next generation of startups.

The numbers: There were just 11 Massachusetts biotech IPOs from 2023 through 2025, .

Parabilis Medicines, a Cambridge cancer drug developer, brought in $670 million in its June IPO, the most by a biotech this year, plus nearly $75 million from a simultaneous private sale of shares to Regeneron Pharmaceuticals. Its stock has gained 38 percent since the deal.

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In April, Kailera Therapeutics, a Waltham company working on obesity treatments, raised $625 million. Its stock has risen nearly 14 percent since the IPO.

What’s next: More IPOs are in the works.

Bill Burkoth, a senior director at Silicon Valley Bank, told the Boston Business Journal that investment banks he speaks with are expecting another 12 to 15 US deals by the end of September.

Now, the not-so-good news.

Washington interference

The Trump administration is moving ahead with new rules that could hurt Massachusetts’ all-important higher education and research sectors.

Last week, the Department of Homeland Security announced a policy change capping student visa holders’ stays at four years unless they receive an extension. It amends a longstanding policy that provided open-ended stays as long as students made progress toward their degree or research objectives.

The move comes as the administration plans new guidelines that would give political appointees final say on federal grants to ensure they meet its priorities. While the proposal would affect awards across a range of fields, it is expected to hit health and science research hardest.

“The proposed rule appears to expand political control of scientific and other grants, downgrade the role of peer review and effectively limit researchers’ ability to disseminate their findings and collaborate internationally,” The New York Times reported.

Why it matters: The administration’s grant-review proposal is expected to have an outsize effect on Massachusetts, a state whose politics are deeply at odds with Trump’s policies, according to the Globe’s Allyson Chiu.

Massachusetts receives more National Institutes of Health funding per capita than any other state.

The state’s colleges and universities are also under pressure as the administration has attempted to increase visa costs and cancel visas, the Globe’s Michaela Towfighi explained last week.

“Even as judges have ruled against these efforts, enrollment from international students has still decreased by an average of 20 percent over the last year,” she wrote.

Final thought: It’s a complicated moment for the local economy.

Biotech is on the upswing, and the Logan expansion is proof positive that Boston remains a key player in the US and global economies.

Can Massachusetts keep moving forward despite Washington’s headwinds? That’s a question that will define the next two years.

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