The 2025 Maryland General Assembly wrapped up its business last week, but many challenges remain. Governor Wes Moore already has signed more than 90 bills into law and many more are still pending.
State Senator Will Smith (D-Montgomery County) looked back on the 90 day legislative session.
“It was one of the more difficult, if not the most difficult legislative sessions I have participated in during my 11 years in the General Assembly,” Smith said.
Tackling the Budget
State legislators faced a daunting task when they convened last January. They had to figure out a way to close a $3.3 billion budget deficit.
Maryland Governor Wes Moore said after the legislative session ended, “I’m proud of the budget deal we crafted with the General Assembly to flip the deficit we inherited into a surplus, while ensuring 94% of Marylanders get either an income tax cut or see no change in their income taxes.”
The $67 billion budget will create two new tax brackets for the wealthiest people in the state. Maryland will slap a 6.25% tax on people who earn $500,000 a year. People making a million dollars or more will face a 6.5% tax. The current tax rate is 5.75% for people making more than $250,000.
The General Assembly also approved a 3% tax on technology services and a 2% tax on capital gains for people earning $350,000. Additionally, the state legislators approved a 5% tax increase on sports betting and a 3% tax increase on cannabis. The new taxes are expected to raise $1.6 billion in revenue. The budget bill also is saving $2 billion by cutting some state programs. In addition the bill is moving monies from the Dedicated Purpose Account into the General Fund.
“Was this a perfect budget, absolutely not. However, I am proud of the work that the General Assembly did in ensuring that we meet our obligations and our commitments to the most vulnerable Marylanders while also facilitating a climate that is friendly to business,” Smith said.
“I think our budget leaders did a heroic job. But unlike what the Trump administration is doing, the General Assembly made decisions strategically and carefully,” said State Senator Cheryl Kagan (D-Montgomery).
More Challenges Lie Ahead
The state, though, still faces a potential money crunch, pending the impact of the Trump administration’s policies and their effect on Maryland. Smith said Medicaid and the state’s Developmental Disabilities Administration could see reduced funding.
“These are our values in Maryland to support people with developmental disabilities and to support as many people as possible that qualify for Medicaid. But the federal government is in partnership with us to help facilitate those programs. With the new administration, a lot of that is in jeopardy and is subject to cuts. So too is our federal workforce. Maryland has the fourth largest number of federal employees in the country,” Smith said.
State Senator Brian Feldman (D-Montgomery County) echoed those concerns. He is chairman of the Education, Energy, and the Environment Committee.
“We are one of 14 states in the country that has a Triple A bond rating. One of the rating agencies, Moody’s identified Maryland as the most vulnerable when it comes to federal actions that could cause issues for the state. It’s not just because of our large federal workforce which is about 150,000 employees. We also have received research grant money from the federal government. Maryland is home to 60 federal agencies,” Feldman said.
As a result, the state has set aside $2 billion in its rainy day fund. The General Assembly may have to reconvene in the fall if the federal government’s actions affect the state budget.
Kagan said she is concerned about the Trump administration’s budget cuts that target the science community.
“There’s scientific research that has been ongoing for years that could help cure deadly diseases, and those have been terminated. People will die as a result of the cuts,” Kagan said.
GOP Reaction to the Budget
However, many Republican state legislators disagree with the Democrats’ budget approach. The Senate Republican Caucus released a statement last week that criticized the tax increases.
“This represents the largest tax hike in Maryland history—a staggering burden on working families, small businesses and retirees already struggling with inflation and economic uncertainty. Instead of reigning in wasteful spending and reforming bloated agencies, the Democratic majority has chosen to raise taxes across the board to fund an ever-expanding government. Republicans offered commonsense cuts to balance the budget without reaching into taxpayers’ wallets. Marylanders are not an ATM for Annapolis. We need budgets that respect taxpayers, grow our economy, and protect future generations from debt and decline. This budget does the opposite,” the statement said.
Protecting Immigrants
State legislators also tackled the issue of immigration. The General Assembly approved The Maryland Values Act. The law provides guidance to schools and churches on how to respond if Immigration Customs Enforcement (ICE) agents arrive at their doorsteps. It also mandates ICE agents have a judicial warrant before they can detain someone in a public or government building. The law ensures state data is protected from ICE or any other federal agency seeking to obtain that information.
“We’re seeing an unprecedented assault on our immigrant population. Immigrants make up about 12% of our population, and contribute mightily to our economic vitality. They also provide cultural enrichment in our communities. The vast majority of folks that are non-citizens are contributing to the tax base, going to work, going to school, and helping to strengthen our communities,” Smith explained.
Some Energy Issues Addressed
The General Assembly also approved several bills that address the state’s energy needs. Currently, the state imports about 40% of the power it needs. However, Feldman said, the demand for energy is only going up.
“We want to be less dependent on out of state sources,” Feldman said.
The package of bills will make solar power and solar battery storage more accessible to help grow the state’s energy capacity. Feldman said there are companies that would like to do business in Maryland but “they find the regulatory environment in our state very, very difficult.”
The approved legislation will make it easier for companies to expand solar energy in the state. Initially some farmers, other members of the agriculture community, and the Maryland Association of Counties (MACo) objected to the proposed legislation. However, legislators adjusted the bill and limited solar projects to 5% in agricultural and forestry areas. Once the 5% threshold is reached in a county, then additional solar projects on farmland could be restricted. Farmers and MACo eventually dropped their opposition to the legislation.
Another bill will help establish an Energy office. That way the state can have its own experts instead of relying on outside specialists to determine Maryland’s energy needs.
Feldman said the state also wants to look at longer term solutions like expanding the use of nuclear power and natural gas. Maryland is part of a 13-state power grid. He explained Maryland may try to collaborate with other states and establish some multi-state agreements on energy.
Blueprint for Maryland’s Future
The state’s money woes forced the General Assembly to temporarily pause parts of the Blueprint for Maryland’s Future. This is the state’s education reform plan. While Maryland will fully fund the program for the next two years, a provision to expand collaboration time for teachers remains on hold.
Feldman explained the collaboration piece could not happen right now anyway because the state has a teacher shortage. He said for teachers to take time out of their day to collaborate, somebody else has to cover the classroom. Since there is a teacher shortage, it made more sense to delay this part of the Blueprint.
Overall, the General Assembly provided Montgomery County with $1 billion for its schools. Feldman said that is a 6.1% increase in direct state aid compared with last fiscal year. The state also raised the piggyback tax counties can assess their residents from 3.2% to 3.3%.
Crime and Punishment
The General Assembly addressed issues dealing with crime and punishment. One bill makes it easier for prisoners over the age of 65 and other inmates in poor health to apply for parole. Another bill, the Second Look Act, will give people who committed crimes when they were between 18 and 25 a parole hearing if they have served 20 years of their sentence. The state also approved legislation that will increase penalties for cyberattacks on 911 centers.
Other Legislation
Kagan said she had 16 of her bills pass the General Assembly, some of which Governor Moore already has signed into law. One bill helps connect 911 phone service and 988, the suicide and mental health crisis hotline, to one another. Another bill expands the use of 311 to provide better customer service and lighten the load on 911 centers across the state.
Help for Nonprofits
Kagan has advocated for nonprofits during her time as a state legislator. One bill passed this session creates a position in the Department of Commerce to help nonprofits navigate a host of issues. Kagan said there are more than 40,000 nonprofits in the state. Often they need guidance on items such as grants and contracts. Another bill increases the amount allowed for overhead costs for nonprofits.
Name Change
The General Assembly approved a bill that codifies a name change for the Maryland State Fireman’s Association (MFSA) to the Maryland State Firefighters Association. The group officially changed its name last year, but the state also had to adopt the name change.
“It’s small, but it’s also symbolic. It’s inclusive and it’s respectful. Three of our largest counties had women as fire chiefs, and the idea that they had to be part of the Fireman’s Association was offensive and inappropriate,” Kagan said.
New State Symbols
House and Senate members also passed legislation to recognize chromite as the state mineral. And they designated Orange Crush as the state cocktail.
The history of chromite dates back to the early 1800s.
“It was first discovered in Baltimore County in 1808 by a man named Isaac Tyson. He then founded a company called Baltimore Chrome Works. It was the first company in the country to manufacture chromium chemicals. They are used for paints and metal alloys including stainless steel,” Feldman explained.
Orange Crush originated at the Harborside Bar & Grill in Ocean City in 1995. Representatives from the state Commerce and Agriculture Departments testified before Feldman’s committee. They explained why the drink would be good for the local economy.
Unfinished Business
While state legislators accomplished a lot this session, they did not tackle some pressing problems. Legislators failed to create more affordable housing or achieve ways to attract more businesses to Maryland. The General Assembly also delayed for another 18 months implementing the State’s Family and Medical Leave Insurance program.
