Maryland Governor Wes Moore Signs FY 2026 Budget Turning Deficit Into Surplus

Maryland Governor Wes Moore signed the Fiscal Year 2026 budget into law during his final bill signing ceremony of 2025, turning a projected $3 billion deficit into a surplus while preserving 8% in the state’s Rainy Day Fund. The budget includes over $2 billion in cuts—the largest in 16 years—and implements an income tax reform plan benefiting 94% of Marylanders with either tax cuts or no changes. Governor Moore also signed the Procurement Reform Act of 2025 to increase transparency and ensure small businesses fair access to state contracts. Additional legislation established the Department of Social and Economic Mobility, addressed energy affordability, strengthened public-sector employee safety standards, expanded the Prescription Drug Affordability Board’s authority, and required public libraries to have Automated External Defibrillators for emergencies. Moore emphasized the state's resilience in overcoming fiscal challenges amid a difficult economic environment, while Republican critics labeled the budget’s $1.66 billion in new taxes as the largest tax hike in Maryland’s history and urged spending cuts instead. Despite partisan differences, the governor highlighted the importance of bipartisan cooperation in delivering results for Marylanders.