Maryland Approves $67 Billion Budget to Address Deficit and Federal Uncertainty

State lawmakers balanced spending cuts and tax increases to close a $3.3 billion deficit, while preparing for potential future federal funding challenges.

• Maryland's General Assembly finalized a $67 billion budget, addressing a $3.3 billion deficit with $2 billion in spending cuts and $1.6 billion in tax increases.
• New revenue measures include a 3% tax on IT services, higher tax brackets for high-income earners, and a 2% capital gains tax on incomes over $350,000.
• The budget includes reforms such as funding for abortion services, expanded healthcare subsidies for young adults, sentencing adjustments, and criminal record expungement.
• Federal funding cuts under the Trump administration have created ongoing uncertainty, with state leaders warning of potential future impacts and signaling a possible special session.
• The budget maintains $2.1 billion in the rainy day fund and leaves a $317 million positive balance for the next fiscal year, while reducing a projected structural deficit.

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