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3w ago

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.

FILE - The Maryland State House is shown, May 11, 2023, in Annapolis, Md. (AP Photo/Brian Witte, File)
Folders containing bills and state senate documents pass hands during the final day of the 2025 legislative session at the Maryland State House. (Karl Merton Ferron/Staff)
Maryland Senate President Bill Ferguson, Governor Wes Moore and House Speaker Adrienne Jones share a laugh while signing bills in the Governor’s Reception Room. (Kim Hairston/Staff)
Del. Brian Chisholm, R-Anne Arundel County holds the bill from Schoolhouse Rock! during the last Saturday House session of the Maryland General Assembly before Sine Die at midnight on Monday. (Kim Hairston/Staff)

Overview

  • 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.