How We Help Clients

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
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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
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By partnering with their procurement teams, state and local government leaders can improve procurement efficiency using proven practices and leading-edge AI.
A white sheet of paper has been cut and folded in half, creating the silhouette of a city hall government building. The open space left by the folded paper is filled with dynamic blue and red shapes representing of workers and technology creating efficiencies in state and local government.
Article
Capturing performance opportunities in US state and local governments
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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
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Organizational strength depends on sustaining good performance. Our new survey shows that five practices could bolster long-term health.
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McKinsey Direct
Four actions to improve Medicaid contact center performance
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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
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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
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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
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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
Governments can deliver exceptional customer experiences—here’s how
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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
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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
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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
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US public sector agencies offer valuable lessons on how public health agencies can approach data governance in a holistic way.
Headshot of Jeanette Betancourt
Interview - McKinsey Health Institute
Young children are experiencing trauma: How Sesame Street wants to help
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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.
Closeup of business women studying charts and diagrams on a digital tablet
Article
Accelerating data and analytics maturity in the US public sector
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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
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As many individuals live well past retirement age, stakeholders are examining how interventions, data, and innovation can transform aging.
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Interview
Lessons in leadership: Using data to drive public-health decisions
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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.
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Article
Building the US public-health workforce of the future
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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).
A sprawling data center complex surrounded by greenery and infrastructure. Several rectangular buildings with white roofs are visible, densely packed with cooling units or similar equipment, with at least one building under construction.
Article
The data center balance: How US states can navigate the opportunities and challenges
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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.
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Report
Small towns, massive opportunity: Unlocking rural America’s potential
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Six strategies could catalyze growth and improve the well-being and economic mobility of rural residents across the country.
A gold magnifying glass with a checklist inside its lens, all against a solid blue background.
Article
Unlocking US federal permitting: A sustainable growth imperative
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The permitting process for large infrastructure projects is costly and time consuming. Accelerating timelines could help meet critical infrastructure needs and fuel future growth.
Three people in high-visibility vests walking in a shipping yard, amidst stacks of colorful shipping containers. The scene suggests a meeting in a bustling port or logistics area.
Article
In a moment of tariffs, can the world find balance and trust to thrive?
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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
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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.
A globe composed of blue dots and lines that rotate, giving the impression of changing data. It is encircled by multiple spinning rings of light and is placed against a dark blue backdrop.
Article
Using AI in economic development: Challenges and opportunities
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There’s always been an art to stimulating economic growth. Now there’s a science, too.
Confident mid adult woman takes attendance during a community group event. - stock photo
Article
Inclusive infrastructure investment: How to empower communities
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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.
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Article
Building innovation ecosystems: Accelerating tech hub growth
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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

Technician works inside machinery
JobsOhio and the long-term, innovative revitalization of a state’s economy
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How did Ohio become a destination for business growth? A new program turned the state’s economy around, with some help from McKinsey.
The mother is on her back looking out the window while holding the baby in her arms. The baby is looking at the camera. Concept of protection. - stock photo
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.
People standing in queue - stock photo
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

David Nuzum
Senior PartnerNew York
Leads McKinsey’s US State & Local Government Practice. Supports public sector leaders in making improvements in public program...
Jessica Kahn
Distinguished PartnerWashington DC
Coleader of our US state Medicaid and human services technology and data work
Katherine Linzer
PartnerChicago
Serves US states and payers on Medicaid strategy and innovation, with a focus on value-based care, managed-care excellence, special...
Sarah Tucker-Ray
Senior PartnerWashington DC
Helps government leaders deliver better outcomes for the public, including improved operations, enhanced customer experience,...
Drew Erdmann
PartnerSt Louis
Helps US state and local governments solve their toughest organizational and operational challenges
Gayatri Shenai
Senior PartnerNew York
Uses digital and analytics to help public- and private-sector institutions transform operational performance and improve competitive...
Adam Barth
Senior PartnerHouston
Leader in McKinsey’s Global Energy & Materials and Public Sector Practices; helps private and public sector clients drive strategies...
Ben Safran
PartnerWashington DC
Supports leaders across the public, private, and social sectors to deliver transformational projects that spur positive economic...

Featured insights

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Insights Collection

America at 250

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The story of America is, in many ways, a story of reinvention. On its 250th birthday, we reflect on how the nation has sustained its economic strength by embracing change and new ideas—and how America’s leaders, innovators, and changemakers can shape its next chapter in a continually evolving world.
A deep row of stone columns casting long, linear shadows.
Article
From campaigning to governing: Mapping a governor’s first transition
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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.
A white sheet of paper has been cut and folded in half, creating the silhouette of a city hall government building. The open space left by the folded paper is filled with dynamic blue and red shapes representing of workers and technology creating efficiencies in state and local government.
Article
Capturing performance opportunities in US state and local governments
-
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.
A glass brain with an energetic array of crystal orbs and rays radiating from it.
Article
Deploying generative AI in US state governments: Pilot, scale, adopt
-
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.
Man standing next to house outline on sidewalk - stock photo
Article
Government productivity: Practical methods to deliver more with less
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Governments can employ seven levers to improve productivity throughout their operations.

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