Governor Moore Releases Moore-Miller Administration FY 2026 Budget Proposal

January 15, 2025/Joe Ciccanti

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Governor Wes Moore today released the Moore-Miller administration’s FY 2026 budget proposal. With this $67.3 billion plan, Governor Moore emphasized a commitment to building an economy that strengthens the middle class and creates pathways to work, fair wages, and wealth for all. While acknowledging that his administration did not cause the current fiscal crisis, he vowed to address it through a balanced approach. His proposal focuses on strategic investments in the middle class, economic growth, modernizing government, and and simplifying taxes to make them fairer and lower for most Marylanders, with the goal of emerging from the crisis stronger than before.
 
Additional Information from the Office of Governor Wes Moore

“We are guided by a single, clear principle: build an economy that grows the middle class and gives everyone a pathway to work, wages, and wealth. We did not create this fiscal crisis, but we are determined to fix it. Our common-sense proposal balances the state budget through strategic investments in growing the middle class,” said Gov. Moore. “By prioritizing economic growth, modernizing government, and making taxes simpler, fairer, and for the vast majority of Marylanders, lower, we will weather this storm and emerge stronger. I look forward to partnering with the Maryland General Assembly to tackle this historic budget crisis and set Maryland on a path of sustainable economic growth.”

The governor’s FY 2026 budget proposal reduces the structural deficit by $2.25 billion for FY 2026, maintains a Rainy Day Fund balance of 8.0%, and flips the projected cash shortfall of $2.95 billion to a positive cash ending balance. The proposal directs state resources toward investing in commercial hubs and industries of the future, maintaining record funding for local law enforcement and public safety, and making education, housing, health care, and child care more affordable for Marylanders.

Moore-Miller Administration’s FY 2026 budget proposal highlights include:

Growing our Economy

  • $128 million in targeted investments in Maryland’s economic growth that will drive $515 million in economic activity to support, create, or retain 2,600 jobs
     

    • $27.5 million for the Capital of Quantum Initiative
    • $25 million in Sunny Day Funds to attract businesses in target industries to Maryland
    • $15 million for Tradepoint Atlantic to support a 168-acre redevelopment slated to break ground in Fall 2025 and projected to generate $1 billion in private investment
    • $10 million for the Build Our Future Innovation Economy Infrastructure Program
  • $122 million in local aid for police protection and increased funding for the Department of Juvenile Services
  • $180 million for initiatives to support the Climate Pollution Reduction Plan – twice the amount budgeted in FY 2025 

Strengthening Maryland’s Labor Force

  • $9.7 billion in Maryland’s public schools
  • Record $401 million in Cade funding for Maryland’s community colleges
  • More than $400 million for Child Care Scholarships to serve nearly 43,000 children this year, up from just over 16,000 children in 2022 
  • $5 million increase for Employment Advancement Right Now (EARN) program funding to find solutions to workforce skill gaps and personnel shortages 
  • $4 million in funding for a new collaboration between MD Department of Transportation and the MD Department of Labor focused on workforce development 

Modernizing Government to Produce Results 

  • Cutting $2 billion in spending through cost reduction and cost saving measures
  • Redirecting spending for underutilized or underperforming programs towards high priority programs

Reforming the Tax Code to it Make it More Fair and Simple

  • Giving a tax cut to nearly two-thirds of Marylanders, targeting low and middle-income families
  • Expanding the child tax credit
  • Lowering the corporate tax rate so that more businesses locate and expand in Maryland
  • Doubles the standard deduction and consolidates the bottom four income tax brackets to simplify Maryland’s income tax
  • Eliminates the inheritance tax
  • 15% increase in the sports wagering tax rate; increase the table game tax rate from 20% to 25%; increase the cannabis tax rate from 9% to 15% (effective FY27)

More information about the Moore-Miller Administration’s FY 2026 proposed budget is available at dbm.maryland.gov. 

 

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