US State & Local Government

We offer the best of McKinsey’s public- and private-sector experience to help our US state and local government clients improve their capacity to deliver positive outcomes for the communities they serve

Today’s governments face challenges and increasing demands as they set about achieving their primary mission: serving the public. For over 50 years, we have partnered with government leaders across more than 30 US states. We work alongside our clients on their priority efforts, including large-scale and multidisciplinary projects related to organization, program delivery, and technology. We work end to end—from diagnosis to strategy to delivery of lasting impact—helping generate tangible results that improve the lives of millions across the US.

We help our US state and local government clients deliver positive outcomes in three core areas: government performance, health and human services, and economic development.

Government performance

We help governments better deliver services to improve lives, livelihoods, and communities. We enable governments to achieve higher-quality outcomes by digitizing services, streamlining processes, leveraging AI to support state and local workforces, increasing efficiency in back-office operations, and reducing fraud, waste, and abuse. All of this is guided by a world-class transformation office to ensure sustainable and impactful change.

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Article

Procurement efficiency: A modern strategy for state and local leaders

October 21, 2025 -

By partnering with their procurement teams, state and local government leaders can improve procurement efficiency using proven practices and leading-edge AI.

Article

Capturing performance opportunities in US state and local governments

April 25, 2025 -

State and local governments in the United States often face a host of funding and workforce challenges, but taking six actions can boost operating performance.

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Article

A fitness agenda for government: Cultivating organizational health in the US public sector

January 14, 2025 -

Organizational strength depends on sustaining good performance. Our new survey shows that five practices could bolster long-term health.

McKinsey Direct

Four actions to improve Medicaid contact center performance

October 8, 2024 -

Surging call volumes, staff shortages, and dated technology challenge constituents as they try to secure benefits. Medicaid agencies are under pressure to improve customer experience and operations.

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McKinsey Direct

Accelerating permitting to help achieve US clean-energy goals

June 18, 2024 -

Permitting can be a major barrier to achieving ambitious clean-energy goals. Some states are acting as laboratories, experimenting with strategies that could be examples for other states.

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Article

Shaping tomorrow’s talent agenda for the public sector

March 21, 2024 -

Vast demographic changes are transforming the world and profoundly affecting how the public sector manages talent. Six priorities can help leaders shape a robust talent framework for the future.

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Article

Deploying generative AI in US state governments: Pilot, scale, adopt

February 21, 2024 -

States could have much to gain from using generative AI tools in their operations. A low-risk strategy may be to test some applications while preparing a longer-term implementation plan.

Article

Governments can deliver exceptional customer experiences—here’s how

November 16, 2022 -

Our US State of the States benchmark provides insights for newly elected and second-term administrations on how to deliver better services, operate more effectively, and win back public trust.

Health and Human Services

We work with governments to help deliver improved health, social, and economic outcomes for individuals and families through enhanced program service delivery, quality healthcare, and digitized government engagement. Our collaboration helps address the needs of all individuals, including children, older adults, individuals with disabilities, individuals in rural areas or those with challenged access to care, and those with physical and behavioral health conditions.

A white sheet of paper has been cut and folded in half, creating the silhouette of a medical cross. The empty space left by the folded paper is filled with blue and red shapes that show health and well-being. Some shapes include exercise, family activities, and medical care.

Article

Advancing America’s holistic health

April 30, 2025 -

Living longer and healthier can help people be more productive in the workplace. Here are three ways in which the US government and healthcare system can help.

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Report - McKinsey Health Institute

Thriving workplaces: How employers can improve productivity and change lives

January 16, 2025 -

Investing in holistic employee health can create almost $12 trillion in global economic value.

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McKinsey Direct

Strengthening data governance in US public health agencies

March 15, 2024 -

US public sector agencies offer valuable lessons on how public health agencies can approach data governance in a holistic way.

Interview - McKinsey Health Institute

Young children are experiencing trauma: How Sesame Street wants to help

May 31, 2023 -

Sesame Workshop’s Jeanette Betancourt explains what the show and the organization behind it are doing to address trauma and emotional well-being for young children.

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Article

Accelerating data and analytics maturity in the US public sector

November 21, 2022 -

US public-sector agencies that have quickly and effectively advanced data and analytics capabilities offer lessons on how to embed data-driven decision making at all levels of government.

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Article - McKinsey Health Institute

Living longer in better health: Six shifts needed for healthy aging

November 11, 2022 -

As many individuals live well past retirement age, stakeholders are examining how interventions, data, and innovation can transform aging.

Interview

Lessons in leadership: Using data to drive public-health decisions

August 16, 2022 -

Mehnaz Mustafa spearheaded the creation of an innovative public-health data and analytics hub to inform New Jersey’s COVID-19 response, advance health equity, and tackle public-health challenges.

Article

Building the US public-health workforce of the future

February 2, 2022 -

State and local health departments have an imperative to invest in their workforces as they build toward endemic COVID-19 and improving other health outcomes. Here are six strategies to act on now.

Economic Growth and Infrastructure

We help national, state, and local governments define strategies and attract large-scale investment to support growth, job creation, and long-term economic prosperity. We aim to deliver holistic impact to communities by supporting governments across various areas including economic development, finance issues (revenue and budget), and infrastructure (transportation, energy, water, and telecommunications).

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Article

The data center balance: How US states can navigate the opportunities and challenges

August 8, 2025 -

State governments will need to balance a complex range of costs and a full view of the benefits as they weigh their strategies in data center development.

Report

Small towns, massive opportunity: Unlocking rural America’s potential

August 4, 2025 -

Six strategies could catalyze growth and improve the well-being and economic mobility of rural residents across the country.

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Article

Unlocking US federal permitting: A sustainable growth imperative

July 28, 2025 -

The permitting process for large infrastructure projects is costly and time consuming. Accelerating timelines could help meet critical infrastructure needs and fuel future growth.

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Article

In a moment of tariffs, can the world find balance and trust to thrive?

May 2, 2025 -

Amid tariff uncertainty and a possible recession, the world needs a new base of balance and trust to create a thriving economy. Business has a vital role to play.

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Report - MGI Research

America’s small businesses: Time to think big

October 2, 2024 -

US micro-, small, and medium-size enterprises, like their global counterparts, struggle with productivity. But a win–win economic fabric connecting all businesses can maximize their potential.

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Article

Using AI in economic development: Challenges and opportunities

May 22, 2024 -

There’s always been an art to stimulating economic growth. Now there’s a science, too.

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Article

Inclusive infrastructure investment: How to empower communities

September 14, 2023 -

With more than $2 trillion in federal funding entering the US economy, three steps can help governments meet the needs of communities previously excluded from federal funding implementation decisions.

Article

Building innovation ecosystems: Accelerating tech hub growth

February 28, 2023 -

Innovation ecosystems can generate economic, financial, and social benefits for all, and there’s new federal funding to build them. A six-step playbook could help leaders get them right.

Case studies

JobsOhio and the long-term, innovative revitalization of a state’s economy

October 6, 2022 -

How did Ohio become a destination for business growth? A new program turned the state’s economy around, with some help from McKinsey.

Redesigning care to reward quality at Tennessee’s Medicaid agency

McKinsey helped TennCare, Tennessee’s Medicaid agency, redesign the way providers are reimbursed for care, which helps to improve the quality of care provided in the state.

Tackling unemployment insurance fraud with state agencies

McKinsey supported state unemployment insurance programs facing extraordinary challenges in the COVID-19 era including unprecedented levels of fraudulent claims, delayed payment of legitimate claims, and advanced and adaptive fraud tactics.

Our People

Featured insights

Collection

America at 250

April 22, 2025 -

The great experiment of 1776 is nearing a milestone birthday. As always, Americans—and people everywhere—are looking for new ideas. In our new series, we hope to help America’s leaders, innovators, and changemakers chart their course.

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Article

From campaigning to governing: Mapping a governor’s first transition

June 20, 2025 -

A successful governor’s transition doesn’t end at inauguration day—or even after the first 100 days in office. Rather, it involves designing and putting in place the new governor’s operating model.

Article

Capturing performance opportunities in US state and local governments

April 25, 2025 -

State and local governments in the United States often face a host of funding and workforce challenges, but taking six actions can boost operating performance.

Article

Deploying generative AI in US state governments: Pilot, scale, adopt

February 21, 2024 -

States could have much to gain from using generative AI tools in their operations. A low-risk strategy may be to test some applications while preparing a longer-term implementation plan.

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Article

Government productivity: Practical methods to deliver more with less

January 30, 2024 -

Governments can employ seven levers to improve productivity throughout their operations.

OPPORTUNITIES

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US STATE & LOCAL GOVERNMENT NEWSLETTER

Monthly newsletter aimed at exchanging insights, inspiration, and ideas to help leaders elevate their agency performance and improve people’s experience.

June 2024