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Yes: 1,663 • No: 1,870
MarylandHB 03522025 Regular SessionHouseWALLET
Budget Reconciliation and Financing Act of 2025
Sponsored By: Sponsor information unavailable
Signed by Governor
Operating BudgetAdmissions and Amusement TaxAgriculture -see also- Agritourism; Cannabis Prd; Farm; etc.AppropriationsArt, Music, and Cultural Affairs -see also- EthAff; Mus; etcBeesBonds -see also- County & Baltimore City Bonds; State BondsBudgets -see also- Capital BudgetsBuses -see also- School BusesCannabis -see also- CannDist; CannProd; Smok&VapCasinos -see also- GamingCertificationsCharging StationsChemical TestsChesapeake Bay -see also- Chesapeake Bay RestorationChildren (4-12)Civil Rights and Social EquityCommerce and Business -see also- ElectrComm; ForeignTr; etc.Commercial PropertyCommittees and CommissionsCommunity CollegesComptrollerConservation -see also- Soil ConservationConstructionConsumer Price IndexCorporations -see also- Municipal Corps; Public Corps & InstCounties -see also- Chartered Counties; Code Counties; etc.Courts -see also- AppCt; Circuit; District; Orphans'; etc.CybersecurityDelivery ServicesDependents -see also- Minors; Vulnerable AdultsDevelopmental DisabilitiesDriver EducationEducation -see also- ContEd; DrvEd; HigherEd; etc.Electronic Commerce -see also- Electronic Funds TransferElectric Motor VehiclesEmergency Medical Services -see also- Ambul; RescSqdEnergy Matters -see also- Fuel; NuclearMatt; PwrPlnts; etc.Enterprise ZonesEnvironment, Department of theEnvironmental Matters -see also- Conserv; Nat Resrce; PollutEnvironmental Service, MarylandErosion -see also- Shore ErosionEstate TaxExemptionsFederal GovernmentFees -see also- Attys' Fees; Devt Fees & TaxesFines -see also- Penalties and SentencesForeign OwnershipForeign TradeForests and Parks -see also- MdNatlCapPkPlnCm; Plants; etc.Gaming and GamblingGrantsHazardous and Toxic Substances -see also- Asbestos; RadiatnHealth -see also- COVID19; EnvHlth; MedCon; etc.Health Care CommissionHealth Care Facilities -see also- Clinics; Hospices; etcHealth, Department ofHealth Occupations -see also- (specific health occupations)Higher Education -see also- Comm Colleges; Med Schools; etc.Horse Industry BoardIncome TaxInformation Technology, Department ofInterestLabor, Department ofLaw Enforcement -see also- SRO; Sheriffs; State PoliceLeases and RentLicenses -see also- AB Lic; Certifications; DrLic; PermitsLivestockLoans -see also- Credit; Mortgages; Scholarships&SFALocal Government MandatesLong-Term Care -see also- Continuing Care; Nursing HomesMass Transit -see also- Buses; RailroadsMedical AssistanceMental and Behavioral Health -see also- Aut; Cogn; Dev; etc.MiningMotor Vehicle AdministrationMotor Vehicle InspectionMotor Vehicle InsuranceMotor Vehicle RegistrationNatural Resources, Department ofNonprofit OrganizationsNoticesOmbudsmenPartnershipsPersonal PropertyPlants -see also- Invasive Species; Trees; WeedsPolice Training and Standards CommissionPrerelease and ReentryPretrial Detention or ReleasePrices -see also- Consumer Price IndexProgram Open SpacePublic Corporations and Instrumentalities -see also- HBEPublic Employees -see also- State EmployeesRailroadsReal PropertyRegistration -see also- Motor Vehicle RegistrationRenewable Energy Sources -see also- Geotherm; Solar; etc.Repeat OffendersReportsRetail SalesRetirement -see also- Mandatory RetirementRevenue and Taxes -see also- (specific tax)Rules and RegulationsSales and Use TaxScholarships and Student Financial AidSchool Resource OfficersSports and RecreationState Police, Department ofState Universities and CollegesSubstance Abuse TreatmentTax CreditsTax ReturnsTeachersTelecommunications and Information TechnologyTransportation -see also- Aircraft; Airports; Boats; etcTreesTri-County Council for SoMd -see also- CalvCo; ChsCo; StMCoTrucksUnemploymentVictims -see also- Criminal Injuries CompensationViolence -see also- Domestic Violence; Hate CrimesVolunteersWarrantsWeights and MeasuresWetlandsWork, Labor, and Employment -see also- JobTrn; Leave; etc.
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Bill Overview
Analyzed Economic Effects
150 provisions identified: 53 benefits, 44 costs, 53 mixed.
Compensation and services for wrongfully convicted
Eligible people wrongfully convicted and confined for a felony or felony conspiracy receive compensation for each eligible day confined. The daily rate equals Maryland’s latest annual median household income divided by 365. Eligibility requires a qualifying pardon or court outcome, no involvement in the offense, and compliance with rules about causing the conviction. An initial payment equal to one annual median household income is due within 60 days. The balance is paid over no more than six fiscal years, or faster on an expedited schedule. Qualifying civil awards reduce compensation, and later awards can require repayment within statutory limits. Available help also includes housing for up to five years, health and dental care for at least five years, and public college tuition and fees for up to eight years. Qualifying fines, fees, restitution, and court-ordered reasonable legal costs are also covered. Beginning in fiscal year 2026, counties and Baltimore City must pay 50% of wrongful-conviction awards.
Families get stolen benefit restoration protections
Beginning in fiscal year 2025, Human Services must restore correctly issued benefits when its investigation confirms theft. Restorations depend on the state budget and have a statewide limit of $30 million each fiscal year. The department must notify households of its decision within 10 days of a report and issue a new card when restoration is warranted. It cannot require a police report or limit which months qualify for restoration. Households have 90 days after a determination to request a hearing over a denial or the restored amount.
Maryland sets standard deductions for households
Maryland's standard deduction is $3,350 for individual filers, including married people filing separately. It is $6,700 for joint filers, heads of household, and surviving spouses. Beginning with tax years after December 31, 2025, the amounts receive annual cost-of-living adjustments, rounded down to the next $50. Fiduciaries are excluded.
More tax relief for student borrowers
Maryland's Student Loan Debt Relief Tax Credit pool grows from $9 million for tax year 2025 to $18 million annually afterward. Each approved borrower can receive up to $5,000. Applicants must have incurred at least $20,000 in undergraduate or graduate loans and still owe at least $5,000 when applying. Applications to the Maryland Higher Education Commission are due September 15. Recipients must use the credit to repay student loans within three years after the claimed tax year ends.
Extra capital gains tax for high earners
Individuals with federal adjusted gross income over $350,000 owe an extra 2% tax on eligible net capital gains. It applies to gains included in Maryland adjusted gross income, on top of regular state income tax. Exclusions cover qualifying primary homes sold for less than $1.5 million, specified retirement accounts, preserved land, qualifying business property, and nonprofit-owned affordable housing. A livestock exclusion covers qualifying cattle, horses, or breeding livestock held more than 12 months. More than half the individual's gross income must come from farming or ranching for that exclusion.
Higher earners lose some itemized deductions
Maryland reduces otherwise allowed itemized deductions for filers whose federal adjusted gross income exceeds the applicable threshold. The reduction equals 7.5% of income above $100,000 for married people filing separately, or $200,000 for other filers. This reduction comes after other itemized deduction limits. It does not apply to fiduciaries.
New income tax rates for Marylanders
Maryland changes its individual income tax schedules based on filing status and Maryland taxable income. For filers outside the joint, surviving-spouse, and head-of-household schedule, rates include 4.7% through $100,000 and reach 6.5% above $1 million. For joint filers, surviving spouses, and heads of household, those thresholds are $150,000 and $1.2 million. Intermediate rates and thresholds also apply; these figures are not the full tax schedule.
Broader access to developmental disability services
The Waiting List Equity Fund can serve people eligible for developmental disability services who are not receiving them, including non-crisis cases. Services still depend on annual budget funding and are not guaranteed to every eligible person. The law removes the ban on replacing funding for emergency community placements or students moving into adult services with this fund. For fiscal year 2026 only, the administration can also use the Community Services Trust Fund to reimburse providers.
Refundable child tax credit for families
Maryland residents can claim $500 per qualifying dependent under 6, or under 17 with a disability defined by Maryland education law. Dependency follows federal rules as of December 31, 2024. Any credit above the state tax owed is refunded. The supplied provision states income must be below $15,000, but also reduces the credit above $15,000. That reduction is $50 per $1,000, or part of $1,000, above the threshold; these conflicting income rules leave eligibility unclear.
State tax credits for older residents
Maryland residents age 65 or older at year-end qualify for a $1,000 credit with federal adjusted gross income up to $100,000. Joint filers, surviving spouses, and heads of household qualify for $1,750 with income up to $150,000. Joint filers get $1,000 if only one spouse qualifies. If September's General Fund estimate falls more than 3.75% below March's, credits fall to $500 or $875 in specified income bands. Those bands are $50,000–$100,000 for individuals and $100,000–$150,000 for the other filing groups; unused credit cannot carry forward.
Vehicle tax relief for eligible recipients
The law exempts qualifying vehicle acquisitions for transfer to Family Investment Program recipients or other people certified as eligible. The acquiring party must be a qualifying religious, charitable, or volunteer organization, Maryland's Department of Human Services, or a local social services department. The exemption removes vehicle excise tax from the covered acquisition.
Public clean energy projects gain funding
For fiscal year 2026 only, Maryland can use up to $100 million in specified utility-law compliance fees for government projects. Eligible uses are solar development on state property and local government clean energy projects. The law does not provide a direct household payment or guarantee energy-bill savings.
Tobacco settlement money supports health programs
Maryland must budget the lesser of $100 million or 90% of estimated available Cigarette Restitution Fund money each year. At least 50% supports designated programs, and at least 30% supports Medicaid, except in fiscal year 2026. Another 0.15% supports specified tobacco-law enforcement. The law also requires $8 million annually for the Community Health Resources Commission Fund in fiscal years 2025–2029.
Spending limits for self-directed disability services
The Developmental Disabilities Administration can set dollar limits on goods and services directed by individuals or families. It still cannot cap personal support hours needed for health and safety and authorized under the specified federal waiver rules. All services and supports must remain within the person's approved annual budget.
Counties can raise income taxes higher
The law raises the maximum county income tax rate from 3.20% to 3.30% of Maryland taxable income. Counties must set their rates by ordinance or resolution, between 2.25% and the new 3.30% ceiling. Your actual rate depends on your county's decision; the law does not automatically raise every county's rate.
Higher vehicle taxes when getting titles
Maryland's vehicle titling tax is generally 6.5% of fair market value. Rental vehicles lose their exemption and face a 3.5% rate. A $100 minimum applies, subject to the statutory minimum-tax exception. An out-of-state vehicle can qualify for reduced tax if its current owner has lived in Maryland no more than 60 days.
Nurseries face fees for business services
Annual nursery certification and nursery stock broker or dealer license fees each rise from $100 to $150. Nursery certification requires meeting state plant-pest standards. Annual inspection fees are $20 for up to one acre, $30 for over one through five, and $40 for over five through ten. Above ten acres, inspections cost $5 per acre or partial acre, capped at $1,500; the schedule also covers inspected broker and dealer stock. Plant certification costs $50 per acre or partial acre for strawberries, Cape American beachgrass, and Avalon saltmeadow cordgrass; grapes, fruit trees, and brambles cost $70.
Business tax covers nonresident owners' shares
Pass-through businesses owe an additional entity-level tax on income shares belonging to nonresident members, including nonresident entity members. A business can instead elect to pay this tax on all members' shares. The supplied provision does not state the rate or explain how payments affect owners' individual taxes.
Enterprise zone businesses lose property credit
The law repeals the property tax credit for eligible businesses with qualified property in Maryland enterprise zones. The former credit could last up to 10 consecutive years. The repeal ends the legal authority to claim that credit.
Technology buyers face broader sales taxes
Maryland applies a 3% sales and use tax to specified data, information technology, software publishing, and intellectual-property licensing services. Covered industry codes include 518, 519, 5415, and 5132; a higher applicable tax rate takes priority. The law also repeals the exemption for custom software and related services, regardless of delivery or access method. Customer tax addresses determine where covered services are taxed.
Disability supports have lower future limits
Maryland establishes flexible Low Intensity Support Services for people with qualifying impairments expected to last indefinitely. A sole diagnosis of mental illness does not qualify, and services depend on available funding. The minimum required per-person cap falls from $2,000 in fiscal year 2025 to $1,000 annually from fiscal year 2026. The Administration can set a higher cap or waive it; these amounts are not guaranteed payments. The specified Department application is not required, and minors do not need a Medical Assistance application for these services.
Deduction limits for nonresident tax filers
Nonresidents and part-year Maryland residents can claim a prorated standard deduction, but not itemized deductions under these rules. Nonresidents generally multiply the deduction by Maryland adjusted gross income divided by federal adjusted gross income. Part-year residents generally use their Maryland resident months divided by 12. More than 15 resident days counts as a full month. The Comptroller can allow or require another method.
Dedicated funds shift toward general spending
The law authorized optional transfers to the General Fund by June 30, 2025. Sources include $230 million from the Renewable Portfolio Standard / ACP Account and $197.36544 million from the Dedicated Purpose Account. Other sources include $80 million from the State employee unemployment reserve and $6 million from the Innovation Investment Tax Credit Reserve Fund. The Governor also had authority to transfer the Strategic Energy Investment Fund’s fiscal 2025 interest earnings. Separately, covered special-fund interest goes to the General Fund in fiscal 2024–2028, unless federal requirements or gift or settlement terms prevent it.
Land preservation funding shifts to budget
For fiscal years 2026 through 2029, $25 million annually goes from available special-fund balances to Maryland’s General Fund. The allocation uses balances not needed for other specified purposes. Program Open Space land acquisition, Agricultural Land Preservation, and Rural Legacy allocations fall in proportion to their estimated revenue shares.
Transportation borrowing grows with revenue limits
The law raises the transportation bond ceiling from $4.5 billion to $5 billion, allowing $500 million more outstanding debt. It does not require new borrowing. Beginning July 1, 2025, transportation revenue raised under this law stays within the Maryland Department of Transportation. Added revenue from the law’s titling-tax changes cannot go to the Gasoline and Motor Vehicle Revenue Account.
Hospitals pay assessments supporting Medicaid funding
The budgeted Medicaid Deficit Assessment is $344.825 million for fiscal year 2025. It rises to $394.825 million annually starting in fiscal year 2026. Hospitals and other covered entities pay the assessment to support Medicaid deficit funding. State health agencies can use another method that raises equivalent combined 2025–2026 revenue by the end of fiscal year 2026.
Counties must pay teacher pension contributions
Beginning in fiscal year 2026, counties and Baltimore City must make annual teacher pension contributions that reduce State obligations equally. Annual amounts are: Allegany $754,195; Anne Arundel $9.738875 million; Baltimore City $8.802114 million; Baltimore County $10.352112 million; Calvert $1.64748 million; Caroline $561,645; Carroll $2.624055 million; Cecil $1.327122 million; Charles $2.786366 million; Dorchester $590,506; Frederick $5.925608 million; Garrett $269,208; Harford $3.685077 million; Howard $6.830167 million; Kent $165,489; Montgomery $20.861475 million; Prince George's $13.000062 million; Queen Anne's $691,279; St. Mary's $1.562014 million; Somerset $314,066; Talbot $452,957; Washington $2.397889 million; Wicomico $1.704888 million; and Worcester $699,872. Fiscal year 2026 payments are due January 1, 2026; later payments are due September 1 each year. The Board's Secretary can allow up to 10 calendar days of grace. After notice and continued nonpayment, the Comptroller must divert money owed to the county to cover the overdue contribution and interest.
Sales tax shares dedicated to education
Education receives stated shares of remaining sales and use tax revenue: 9.2% for 2023, 11.0% for 2024, and 11.3% for 2025. The share is 11.7% for fiscal year 2026 and 12.1% for fiscal year 2027 and later years. The rest goes to the General Fund. These are revenue-sharing rules, not changes to shoppers' tax rates.
Cannabis taxes fund communities and services
Maryland sends 25% of cannabis sales tax revenue directly to the General Fund and allocates the other 75% among designated uses. Those uses cover the Cannabis Administration’s full operating costs, with any remaining balance going to the General Fund. Within that allocation, community reinvestment receives 35% in fiscal 2024–2033, and counties and public health each receive 5%. Business assistance receives 5% in fiscal 2024–2028. County shares follow where revenue is collected; towns receive half the county allocation tied to dispensaries within their borders.
State borrows reserves with scheduled repayment
The Comptroller must move $230 million from the local reserve account to the General Fund by June 30, 2025. Another $40.56743 million must move by June 30, 2026. The law requires annual repayments of $27.056743 million to the reserve account in fiscal years 2029 through 2038. These transfers repay the full $270.56743 million and do not change an individual's tax liability.
Transportation accounts receive different tax shares
After required distributions, 37.5% of the specified remaining individual income tax revenue goes to the Transportation Trust Fund. A separate rule narrows the titling tax revenue used for the Gasoline and Motor Vehicle Revenue Account’s two-thirds share. It excludes revenue from titling tax rates above 6% and all rental-vehicle titling tax revenue. These rules allocate revenue; they do not directly change household tax bills.
Stronger theft safeguards for benefit cards
Maryland and covered state-supported entities must prefer electronic-benefit vendors with insurance usable to repay beneficiaries after identity fraud or theft. Preferred vendors must also provide identity-access protections, which can include extra login checks. The Department of Human Services must work with vendors to use available theft-prevention tools and technology. These requirements do not guarantee reimbursement or prevent every theft.
Settlement fund can support broader legal help
The Mortgage Loan Servicing Practices Settlement Fund can pay for legal assistance in any type of legal proceeding. Its listed housing and foreclosure-relief purposes also expressly include eviction-related legal help. Spending must serve a permitted fund purpose; the law does not guarantee help or set an individual assistance amount.
More funding for community college scholarships
Maryland must budget at least $13.5 million annually for Community College Promise Scholarships starting in fiscal year 2026. That raises the prior minimum of $12 million. The Maryland Higher Education Commission awards scholarships to eligible students; this law sets no individual award amount.
More loan help funding for officers
Maryland must budget at least $500,000 for police officer and probation agent loan repayment in fiscal year 2025. That raises the prior minimum from $200,000. The law sets no individual repayment amount.
Scholarship funding for police career students
The police officer and probation agent scholarship program has a required budget floor of $500,000 for fiscal year 2025. The floor rises to $2 million annually starting in fiscal year 2026. Recipients must attend an eligible institution and pursue a degree leading to, or advancing, a police or probation career. The law does not set individual scholarship amounts.
Convention bullion buyers get tax exemption
You pay no Maryland sales and use tax on qualifying precious metal bullion or coin purchases. The sale price must exceed $1,000, and the sale must occur at the Baltimore Convention Center.
Free titles for qualifying inheritance transfers
The Motor Vehicle Administration cannot charge a title fee to a surviving spouse after a joint or sole owner dies. For a sole-owner vehicle, the transfer must follow Maryland's vehicle ownership transfer law. Title fees are also waived for vehicles transferred to a trust or from a trust to beneficiaries under Maryland trust law.
Local governments cannot add tire charges
Counties, cities, and their agencies cannot add taxes, fees, or other charges to a dealer’s first sale of a new tire. This restriction does not remove the state tire recycling fee.
Local taxes on new tires banned
Beginning January 1, 2026, counties, towns, and their agencies cannot charge taxes or fees on dealers’ new-tire sales. This ban covers local charges, not statewide tire charges.
Taxpayers get limited 2025 penalty relief
The Comptroller must waive interest or penalties on 2025 estimated Maryland income taxes caused by this law's tax-rate increase. Relief applies only to charges the Comptroller finds the individual otherwise would not have owed. The amount depends on the qualifying charge.
Businesses get measuring equipment renewal notices
Maryland's Secretary of Agriculture must send a renewal form and notice to each person with a known weight or measure registration. The notice must arrive at least one month before expiration. It must identify the expiration date, application and fee deadline, and renewal fee.
Construction training certificates renew automatically
Sediment and erosion control training certificates last three years and renew automatically. Renewal is not automatic when the Environment Department notifies the holder that more training is required. The certificates cover responsible personnel handling construction-site clearing, grading, or sediment control. Projects involving four or fewer homes can qualify for a waiver.
Farms face fewer nutrient reporting duties
Covered farms no longer have to file nutrient management plan summaries or annual implementation reports. The law also removes specified manure-transfer reporting and summary retention duties. Related penalties for failure to file are removed.
Fewer registration and equipment rules for beekeepers
Beekeepers no longer have to register colonies annually by January 1 or register newly acquired colonies within 30 days. The law also removes the requirement to provide movable frames in each colony. Related late-registration and equipment penalties, along with the equipment notice period, are removed.
Horse businesses gain license renewal options
Horse establishment licensees have 60 days after expiration to renew retroactively. They must remain eligible, submit the required application, and pay the renewal fee and any Board-set late fee. More than 60 days after the renewal deadline, former licensees can apply for Board-approved reinstatement. Reinstatement requires continued eligibility, the required application, and payment of both reinstatement and renewal fees.
Nursery owners can release unaffected stock
When dangerously harmful plant pests are found, the Secretary must release the other nursery stock grown on the premises. The owner must also receive an inspection certificate. The rule covers nurseries, orchards, and premises where nursery stock is grown or held for sale.
Wholesale seed sellers lose permit costs
Wholesale seed sellers doing business in Maryland no longer need the wholesale seedsman permit or pay its $100 annual fee. This includes out-of-state sellers. Related permit suspension, revocation, and stop-sale provisions are also repealed.
Targeted technology businesses get tax exemptions
Covered cloud computing sales to qualifying cybersecurity businesses are exempt from sales and use tax. Buyers must be for-profit businesses mainly developing innovative proprietary cybersecurity technology or providing cybersecurity services. A separate exemption covers specified technology services bought for work by qualifying companies in Maryland's Discovery District in Prince George's County. It also covers those services sold by qualifying companies. Those companies must contract with the University of Maryland's Applied Research Laboratory for Intelligence and Security to advance quantum-computer technology.
Tire dealers get fee administration credit
Tire dealers can claim a credit equal to 0.6% of gross tire recycling fees payable to the Comptroller. Dealers must file their return on time and pay the fees due. The credit helps cover dealers' costs of handling the fee; it is not a direct discount for tire buyers.
Emergency fund can support police aviation
For fiscal years 2025 and 2026, the Maryland Emergency Medical System Operations Fund can support State Police Aviation Command operations. The authority covers general operations. The law sets no spending amount.
Funding rules support parks and heritage
A state budget appropriation or amendment can transfer up to $3 million from Program Open Space to heritage-area financing. Up to $300,000 of that amount can support Maryland Historical Trust grants for preservation work other than capital projects. After the heritage transfer, half of remaining funds must support recreation and open space through the department and Historic St. Mary's City Commission. The Forest and Park Service must receive 20% of the funds or $21 million, whichever is greater, for operations. Except where the law provides otherwise, legislative appropriations under this rule are limited to land acquisition.
Marine police funding ceiling rises modestly
Beginning with fiscal year 2026, the department can propose up to $2.1 million annually for Natural Resources Police marine operations. The money comes from the Waterway Improvement Fund. This raises the prior $2 million annual ceiling by $100,000, while keeping a firm $2.1 million limit. It is permission to propose funding, not a guaranteed appropriation.
More local offices face performance reviews
Maryland’s Office of Program Evaluation and Government Accountability may review each court clerk, register of wills, and local school system. Reviews follow the office’s work plan. The statute’s exclusions for legislative and judicial branch units remain in place.
Prison oversight office gains funding option
Beginning in fiscal year 2026, up to $1 million annually from the Performance Incentive Grant Fund can support the Correctional Ombudsman's office. The money supports office operations, not direct payments to households.
Rural conservation gains protected funding authority
The state budget can transfer up to $8 million annually from the State's recreation and open-space share to Rural Legacy. Up to $2 million of the transferred money each year can buy zero-coupon bonds for conservation easements. Rural Legacy allocations cannot revert to the General Fund. These transfers require a state budget appropriation and are not guaranteed funding.
Attorney General gets broader funding support
Starting in fiscal year 2026, Maryland must budget at least $350,000 annually in special funds for consumer protection enforcement. The Attorney General's office uses the money for new staff and investigations of alleged consumer-law violations. The Securities Act Registration Fund can also support the office's general operations, alongside securities-law administration and enforcement.
New fund supports Medicaid primary care
Maryland creates a fund that keeps unspent money to support primary care under the AHEAD Model. It can support higher Medicaid visit payments, care-management fees for eligible practices, provider investments, and quality incentives. Sources include a one-time hospital payment assessment for calendar year 2023. Spending must follow the State budget; the law sets no total funding amount.
Baltimore gets yearly blight removal funding
Maryland must include $50 million annually for the Continuing the CORE Partnership Fund starting in fiscal year 2026. The money supports removal of blighted property in Baltimore City. Funding can appear in the annual operating or capital budget and is not a direct household payment.
School safety grants get yearly funding
The Governor must budget $10 million each year for school safety grants to local school systems and law enforcement agencies. The money supports required school safety measures, rather than an appropriation to the Safe Schools Fund. Each school system’s grant depends on its share of Maryland public schools in the prior year.
Public agencies avoid nursery licensing fees
Federal, state, and local public agencies are exempt from the nursery license and inspection fees covered by this law. The exemption lowers those agencies' direct fee costs.
Racetrack borrowing requires advance cost disclosures
The Maryland Thoroughbred Racetrack Operating Authority must give fiscal committees a financing plan before seeking approval for each facility borrowing. The plan is due at least 45 days before the Board of Public Works approval request. It must include anticipated costs of at least $250 million for Pimlico and $110 million for the training site. This disclosure rule does not itself approve borrowing or appropriate those amounts.
Rapid bus projects gain yearly funding
Beginning in fiscal year 2026, the Governor must include $10 million annually for the Bus Rapid Transit Fund. The money comes from the Transportation Trust Fund and supports rapid bus system grants. The law does not set individual grant amounts.
Renewable project funds target eligible communities
Specified compliance fees fund loans and grants for new Maryland Tier 1 renewable projects owned by or directly benefiting eligible communities. Eligible communities include overburdened or underserved areas and census tracts with average median income at or below 80% of the state average. Separately tracked solar compliance fees support new Maryland solar projects benefiting qualifying low- or moderate-income households or communities. The broader renewable-fee restriction remains subject to two statutory exceptions. The law sets no grant amount or guaranteed household energy savings.
Transit projects gain more borrowing tools
Debt backed by future federal aid can fund major light rail repairs, replacement vehicles, and related station and maintenance improvements. The existing $1 billion outstanding-debt cap, measured each June 30, and 15-year maturity limit remain. The Bus Rapid Transit Fund can also commit money to support transit bonds, alongside grants. Responsible governments cannot reduce or redirect pledged revenues until covered bonds are paid or adequate payment arrangements exist. These financing changes do not themselves provide a new appropriation.
State bond payments get funding backup
The Governor may transfer enough money to the Annuity Bond Fund to cover state bond payments if needed. Any transfer must occur through a budget amendment by June 30, 2026. The law sets no dollar amount.
Behavioral health providers can retain funds
The Behavioral Health Administration can create a process allowing certain local agencies and community providers to keep unspent year-end money. Eligible entities include core service agencies and local addiction and behavioral health authorities. Retention is optional, not guaranteed. The law does not specify an amount or require added services.
Excess prescription funds support more care
Excess Senior Prescription Drug Assistance Program money can support the Kidney Disease Program and mental health services for uninsured people. It can also support state-law health reimbursement accounts beginning in fiscal year 2025 and in later years. The state must first reserve everything needed to administer, operate, and carry out the prescription program. No amount is guaranteed for the added uses.
New fund handles ground-rent redemption payments
Maryland creates an ongoing fund that keeps unspent money for ground-rent documents and payments to former ground-rent owners. Subject to the State budget, it funds document review, processing, and audits. It also pays amounts due when ground rent is redeemed or extinguished. The law sets no appropriation or individual payment amount.
Nine jurisdictions get teacher retirement grants
For fiscal year 2026, Maryland requires General Fund grants for teacher retirement supplements in nine jurisdictions. Grants are $816,053 for Allegany County; $5.023798 million for Baltimore City; and $1.5 million for Baltimore County. Caroline County gets $342,554; Dorchester County, $154,457; and Garrett County, $203,200. Prince George's County gets $4.814351 million; Somerset County, $191,000; and Wicomico County, $783,919. These are jurisdiction-level grants, not specified payments to individual teachers.
Business financing gets previously unspent money
Previously unspent allocations provide business financing support in each fiscal year from 2026 through 2028. Each year, $1.5 million is available for the Maryland Small Business Development Financing Authority. Another $7.5 million annually is available for the Pre-Seed Builder Fund. The provision sets no individual loan or grant amount or eligibility rules.
Social equity grants get yearly funding
The Governor must budget $5 million annually for Maryland’s Social Equity Partnership Grant Program, starting in fiscal year 2025. The money comes from the Cannabis Regulation and Enforcement Fund. This provision does not set individual grant eligibility or award amounts.
Delivery vendors no longer owe fee
Maryland repeals its Retail Delivery Fee law. Covered delivery vendors no longer owe the fee under that law. The repealed rule applied to vendors with at least $500,000 in retail sales during the previous calendar year.
Required funding for historic project credits
The Governor must budget at least $16.5 million annually for the Historic Revitalization Tax Credit Reserve Fund. This requirement covers fiscal years 2026 through 2028. The money is in addition to required funding for the Small Commercial Project Trust Account. These are program funding floors, not individual credit amounts.
Higher registration fees for vehicle owners
Beginning July 1, 2025, Class A passenger cars and station wagons and Class M multipurpose vehicles follow the same annual fee tiers. Based on manufacturer's shipping weight, fees are $80.50 through 3,500 pounds, $85.50 above 3,500 through 3,700 pounds, and $151.50 above 3,700 pounds. Class L historic vehicles pay $55.50 annually, up from $45.50 for July 1, 2024, through June 30, 2025. The historic-vehicle fee remains subject to the exception in state law.
New tire fees raise purchase costs
Beginning January 1, 2026, two separate fees apply to qualifying first sales of new tires, including tires sold with vehicles or machinery. The recycling fee starts at $1 per tire, with inflation adjustments allowed every two fiscal years up to $2. The recycling fund has a $10 million cap; projected excess balances require proportional fee adjustments for the next fiscal year. A separate $5 dealer fee funds transportation after administrative costs; wholesaler and out-of-state retailer sales are excluded, and a separately stated fee is exempt from the specified sales taxes. Dealers remit recycling fees monthly or as directed, with electronic returns required after December 31, 2026; the $5 fee requires electronic returns and payment by the next month's 21st day, unless the Comptroller sets other dates.
Tighter registration options for vehicle owners
The law removes the requirement that Maryland allow vehicle registration fees to be paid in installments. Owners must rely on the remaining payment rules. Historic registration now requires model year 1999 or earlier, replacing the rolling 20-year age rule. Vehicles also must remain substantially unchanged from their original design and meet state registration rules.
Truck owners face higher registration charges
Beginning July 1, 2025, the annual surcharge for Class E trucks with two or more axles rises from $50 to $75. It is added to the registration fee based on maximum gross weight. For Class E trucks rated at 3/4 ton or less with maximum gross weight of 7,000 pounds or less, annual fees follow three weight tiers. Fees are $93.75 through 3,500 pounds, $98.75 above 3,500 through 5,000 pounds, and $138.75 above 5,000 pounds. Within that qualifying group, owners who certify construction use on the application pay $93.75 regardless of maximum gross weight.
Higher registration fees for securities agents
Maryland securities agents pay $65 for each initial registration, renewal, or registration transfer, up from $50. That adds $15 per event. The amount sent from each fee to the Securities Act Registration Fund rises from $15 to $25.
Care navigation loses required state funding
The law removes the required $2.4 million annual appropriation for managing long-term care and dementia care navigation programs. It also removes the requirement to divide that money proportionally among area agencies. This ends a funding guarantee, not necessarily the programs themselves.
Cannabis buyers pay higher sales tax
The tax on taxable cannabis purchases rises from 9% in fiscal years 2024 and 2025 to 12%. The 12% rate applies beginning in fiscal year 2026 and continues in later years.
Vehicle owners pay higher title fees
The general vehicle title fee doubles from $100 to $200. Rental vehicle titles and qualifying family transfers of trailers weighing 3,000 pounds or less rise from $50 to $100. Off-highway recreational vehicle titles rise from $35 to $70; scooter and moped titles rise from $20 to $40. A qualifying family trailer transfer must involve no payment or other valuable consideration. For transfers to nieces or nephews, the person transferring the trailer must be at least 65.
Vending machine snacks become taxable
Snack food sold through vending machines loses its sales tax exemption. Vending-machine sales of milk, fresh fruit, fresh vegetables, and yogurt remain exempt. Vendors must account for the tax on taxable snack sales.
Watermen's loan funding requirement ends sooner
Required annual funding of $500,000 for Maryland's Watermen's Microloan Program covers fiscal years 2024 and 2025. The law removes the requirement for fiscal year 2026. It does not set individual loan amounts or require the program to close.
Baltimore area projects lose state funding
The law withdraws a $12 million grant from the fiscal year 2024 budget for Lansdowne Library improvements in Baltimore County. It cuts $1.5964 million in unspent Baltimore City park funding. Affected projects are Herring Run Park, Druid Hill Trail Head, Saint Charles Park, Bond Street Park, and Warwick Park. It also cuts $326,456 in unspent state funding for Baltimore's 2023 Artscape Festival.
Farm tree planting funding sharply reduced
Required agricultural tree-planting funding falls from $2.5 million to $500,000 annually for fiscal years 2025–2031. That is a $2 million annual reduction, totaling $14 million over seven years. Eligible landowners retain a one-time signing bonus of up to $1,000 per acre. The bonus covers Conservation Reserve Enhancement Program land planted with a forested streamside buffer.
Land preservation funds face budget diversions
When special-fund transfer tax revenue pays bond debt, related state land acquisition and agricultural preservation distributions are reduced. The combined reduction equals that fiscal year's debt payment. Transfers from the special fund to the General Fund in fiscal years 2026–2029 also lose their repayment requirement. The Governor no longer must budget three annual payments to reimburse those transfers.
Local warrant enforcement grants cut in half
Required grants for local warrant apprehension fall from $2 million to $1 million in each of fiscal years 2025 and 2026. Agencies can use the money to reduce outstanding warrants, including violent-crime warrants. Grants can also support coordination with state and federal agencies.
Native plant webpage requirements end
The University of Maryland Extension no longer must create a Maryland Native Plants webpage. The Department of Natural Resources no longer must link to it. The law also removes the related annual budget provision for a Native Plant Specialist and program staff.
Crisis hotline funding becomes optional
For fiscal year 2025, the Governor may budget $12 million for Maryland’s 9-8-8 Trust Fund. The law makes this appropriation optional instead of required. It does not specify resulting changes to crisis hotline services.
Health programs lose guaranteed annual funding
Starting in fiscal year 2026, the Patient Safety Center's $1 million annual appropriation becomes optional, after mandatory funding in 2023–2025. The behavioral health care coordination pilot's $600,000 annual appropriation also becomes optional for fiscal years 2025–2027. The health department can use some pilot money for payments tied to results starting in 2026. It can increase that share in 2027.
Counties pay more state program costs
Counties and Baltimore City must reimburse 90% of specified state property valuation and technology costs, up from 50%. Covered costs include real property valuation, business personal property valuation, and the department's information technology office. Beginning in fiscal year 2026, the locality where a wrongful conviction occurred also owes 50% of the compensation award. That payment is due annually by June 30; late payment can lead to withheld local income tax distributions. These are local-government obligations, not charges on compensation recipients.
Covered providers face payment rate freeze
From July 1, 2025, through June 30, 2026, covered provider payments cannot use rates above January 1, 2025 levels. This applies to providers whose rates are set by the Interagency Rates Committee under Maryland education law. The provision does not specify changes to household charges or access.
Erosion certification applicants face possible fees
Maryland's environment department can set a fee by regulation for processing and issuing sediment and erosion control certification. The fee must roughly equal the cost of that work. Collections go to the Maryland Clean Water Fund. The law authorizes the charge but does not set an amount.
Mining permit transfers carry filing fee
A successor filing to transfer a Maryland mining permit must pay $750 when the transfer is filed. The provision does not specify any resulting change in household prices.
Nonprofit racetrack operators pay audit costs
A nonprofit racing and community development project operator must reimburse the state authority for a full-time auditor. The auditor oversees project costs and ongoing operations. Replacing the operator requires approval from both the Thoroughbred Racetrack Operating Authority and the Maryland Economic Development Corporation. The nonprofit operator is not a state agency or Executive Branch unit.
Smaller General Fund sports wagering share
Beginning in fiscal year 2026, 5% of mobile sports wagering proceeds goes to Maryland's General Fund. This replaces the prior 15% share through fiscal year 2027. The allocation change does not directly alter household taxes or wagering payments.
Surface miners pay license and permit fees
Surface mining licenses cost $400 to apply and $150 to renew annually, with renewal applications due January 1. Permit and renewal fees include $18.50 per affected acre per operating year, capped at $3,000 annually, plus 0.50 cent per ton sold. Modifications cost $150, plus acreage charges for land beyond the original permit and the stated per-ton charge. Starting in fiscal 2028, per-ton fees rise every two fiscal years: by $0.13 for permits and modifications, but 0.13 cent for renewals. Permit fees are paid annually, with extra fees for each five-year portion of a term beyond five years.
Wetlands applicants face higher permit fees
The law raises specified wetlands and waterways application fees. An added Tier II high-quality watershed fee is $400 for minor projects or changes and $1,600 for major ones, subject to statutory exceptions. Other fees depend on project type, modification status, and the area of permanent impact for major projects. The department can adjust specified fees annually for consumer inflation, with at least 90 days’ public notice.
Cancer research grant requirement ends
The law repeals the Statewide Academic Health Center Cancer Research Grants framework. It removes the requirement for at least $13 million in annual appropriations. The grants supported the University of Maryland Medical Group and Johns Hopkins Institutions.
Construction education center gets less funding
Required funding for the Construction Education and Innovation Center falls from $625,000 to $531,250 annually in fiscal years 2025–2029. The Construction Education and Innovation Fund can support only the Center's purposes.
Counties pay more special education costs
Counties pay a larger share of approved nonpublic special education placements for children who live in the county. For costs above the local share plus 200% of basic cost, the county's added share was 30% through fiscal year 2025. It rises to 40% in fiscal year 2026 and 50% annually afterward. The county contribution cannot exceed the approved total cost or reimbursement; Maryland pays the remaining approved costs.
Forestry education funding requirement ends sooner
Maryland must provide $250,000 to the Forestry Education Fund for fiscal year 2025. The law removes that funding requirement for fiscal year 2026. The fund supports forestry education through forestry groups, local governments, and forestry businesses.
Health worker career funding minimum falls
Maryland must provide at least $500,000 annually for the Career Pathways for Health Care Workers Program from fiscal year 2025. The prior annual minimum was $1 million through fiscal year 2024. The change lowers required support for the program's career-development work.
Two colleges lose state funding guarantees
St. Mary's College loses its required inflation-adjusted state grant and grant increases tied to graduation rates. The law also removes specified support requirements for employee health insurance and cost-of-living increases. Baltimore City Community College loses its minimum operating funding formula per full-time equivalent student, including its fiscal year 2026 provision. These repeals remove funding guarantees but do not state either college's final budget.
Entrepreneurship grant funding minimum falls
The Maryland New Start Grant Program's annual funding minimum falls from $200,000 to $50,000 for fiscal years 2025–2028. Grants support organizations that create or support entrepreneurship development programs for covered individuals. The Department can spend no more than 10% of program appropriations on administration.
Film producers face lower credit cap
Maryland caps film production tax credit certificates at $12 million annually starting in fiscal year 2026. That is $8 million below the prior fiscal year 2026 cap of $20 million. One film activity remains limited to $10 million, and unused program amounts can carry forward. Productions must qualify and receive eligibility approval from the Secretary of Commerce.
Printing buyers lose materials tax exemption
Maryland repeals the sales and use tax exemption for photographic materials used to make items for composition or printing. Businesses and other purchasers lose that exemption on covered purchases.
Vehicle insurance lapse rules are repealed
The law repeals statutory vehicle insurance lapse rules covering registration suspension, insurer notices, registration surrender, and related penalties. The supplied provision does not identify replacement requirements. It does not establish that drivers can stop carrying required insurance or that all lapse penalties disappear.
Counties gain one-time income tax flexibility
For tax years beginning in 2025, counties can set their income tax rate under the amended rate-setting rule. Counties must notify the Comptroller in writing by May 15, 2025. They cannot request another rate or bracket change for that tax year. The law expands this one-time authority but limits further changes; household tax effects depend on each county's decision.
Commercial measuring equipment gets renewal flexibility
Eligible businesses can renew weight or measure registrations retroactively within 60 days after expiration. They must submit the renewal application and pay the renewal fee plus any late fee set by the Secretary. The Secretary of Agriculture can set reasonable commercial registration fees instead of using the statutory fee schedule. The law states no new fee amounts.
Employers get unemployment fee and offset
Starting January 1, 2026, employers liable for unemployment contributions pay an annual administrative fee of 0.15% of taxable wages. Their contribution rate falls by 0.15 percentage points, but new employers must still contribute at least 1%. The fee is separate from contributions, so the fee and savings can offset each other. It goes to a fund for specified unemployment administration costs, not the Division of Workforce Development and Adult Learning.
Unemployment administration and business takeover rules
The Special Administrative Expense Fund can cover unemployment administration, fee collection, and allowed workforce division costs without losing available federal money. Fee revenue cannot pay the Workforce Development and Adult Learning Division's administrative costs. Reorganized employers remain responsible for unpaid administrative fees, alongside covered contributions, interest, and penalties. Successors owe a predecessor's unpaid fees when the predecessor leaves business after the transfer. Multiple successors split that fee liability based on the transferred payroll records.
Cleaner transit bus deadline moves back
Maryland’s restriction on buying non-zero-emission transit buses starts in fiscal year 2032 instead of fiscal year 2027. The transit administration may buy alternative-fuel buses when enough suitable zero-emission buses or required charging equipment are not commercially available. Purchases can use the Transportation Trust Fund or qualifying bonds backed by future federal aid.
Coastal trust can cover operating costs
The Governor may budget up to $10.5 million annually from the Chesapeake and Atlantic Coastal Bays 2010 Trust Fund. This money can pay departmental operating expenses. The law does not require the appropriation.
Earlier local government provision repealed
The law repeals section 16-503 of Maryland’s Local Government Article. The supplied text does not explain what that section governed. Effects on households and local governments cannot be determined from this provision.
Earlier temporary state provision expires
Section 2 of Chapter 111 of Maryland’s 2023 laws expires at the end of June 30, 2025. Its authorized duration is two years and one month. The supplied text does not identify what it governs, so household effects cannot be determined.
Parks can use land acquisition balances
For fiscal year 2026 only, the Governor can appropriate up to $16.4 million for Maryland Park Service operating costs. The money comes from the Program Open Space State land acquisition fund balance. This can support park operations but leaves less in that balance for land purchases. The law does not require the full amount to be appropriated.
Racetrack agreements need shutdown safeguards
The racetrack authority must ensure a long-term management and operating agreement for Pimlico is signed. If a legal or regulatory change makes thoroughbred racing unlawful or commercially unviable, agreement parties must provide a shutdown plan. They must notify the Board of Public Works at least 180 days before the agreement ends and include dispute-resolution terms. Before the authority’s termination provision takes effect, all remaining Maryland Racing Operations Fund money must move to the Racing and Community Development Facilities Fund.
Montgomery County can oversee nursing homes
Montgomery County can request nursing-home oversight duties if Maryland missed required surveys or complaint investigations there in fiscal year 2023 or 2024. The health department must delegate those duties and sign an agreement within 90 days after the request. The county chooses a period of up to 60 months and pays 50% of state costs. Its cost cap uses fiscal year 2020 costs, adjusted for Washington-area consumer inflation, with annual increases limited to 3%.
Service year targets grow, funding dips
Young Adult Service Year Option Pathway targets rise to 750 participants in implementation year three. Targets reach 1,500 in year four and 2,000 in year five. Required fiscal year 2026 funding falls from $15 million to $13 million. Required funding remains $20 million annually from fiscal year 2027. These targets do not guarantee anyone a place or payment.
Cleanup review fees rise with exemptions
The initial environmental response action plan review fee rises from $6,000 to $10,000. Applicants must also pay direct review, administration, and oversight costs exceeding that fee. The department can lower the initial fee for demonstrated financial hardship. It must waive the listed fees when an applicant certifies plans to use eligible property to generate clean or renewable energy.
Energy fund can cover air oversight
The Strategic Energy Investment Fund can pay costs of the Environment Department’s Air and Radiation Administration. This adds an allowed use of the fund. The law sets no spending amount or direct household benefit.
Environmental service can hold larger reserves
The Maryland Environmental Service can retain up to $5 million in its Eastern Correctional Institution Turbine Project Contingency Fund, up from $1.5 million. Its Reimbursable Project Contingency Fund ceiling rises from $1 million to $3 million. Larger retained reserves leave less money immediately available to return to the State. Only money reimbursable to the State can enter these reserves, and balances above each ceiling must return to the original state fund.
Fast technology projects lose funding guarantee
The law removes the Information Technology Investment Fund’s minimum 20% set-aside for expedited projects. Unused set-aside money no longer has to stay reserved for future expedited projects. Agencies gain more freedom to allocate the fund, but expedited projects lose their guaranteed minimum share.
Horse racing purse deduction ceiling rises
The organization representing most Maryland horse owners and trainers must set a deduction from all open racing purses. The allowed range is 1% to 3%, raising the former 2% ceiling to 3%. The money goes to the organization; the law does not choose the actual rate.
Lottery money supports stadium funding schedules
After required distributions, remaining lottery money goes to stadium funds, subject to annual caps. For fiscal years ending after June 30, 2023, through June 30, 2026, caps are $14.2 million for Maryland Stadium Facilities, $34.9 million for Camden Yards Football, and $40.9 million for Baseball. After June 30, 2026, through June 30, 2039, those caps are $3.36 million, $45 million, and $41.64 million, respectively. After June 30, 2039, the Football and Baseball funds can each receive up to $45 million annually.
Mining applicants can reuse unchanged information
Mining renewal and modification applicants can state in writing that information is unchanged instead of submitting it again. The Department can still request more information. Added land must touch the existing affected land, and modifications cannot extend the permit’s expiration date. Other permit terms can change only when the Department finds that the modified permit meets legal requirements.
Montgomery County transit grant share rises
When the Bus Rapid Transit Fund has two eligible grantees, including Montgomery County, the county receives $25 million. That amount rises from $20 million. The other grantee receives the remaining deposit or payment.
Planning operations can use park funds
For fiscal 2026 only, an additional $340,000 in transferred Program Open Space money can pay Planning Department operating costs. The money comes through the Maryland Heritage Areas Authority. This allows another use of those funds rather than creating a household payment.
Program balances can support general spending
The Governor may move specified program balances to Maryland’s General Fund; these transfers are optional. By June 30, 2025, authorized transfers are $5 million from mortgage-servicing settlements, $4.3 million from the More Jobs for Marylanders tax-credit reserve, $5 million from police training, and $4.9 million from violence prevention. By June 30, 2026, authorized transfers are $13.1 million from maternal and child health, $20 million from circuit court property-record improvements, $1 million from tire cleanup, and $3 million in racing and community development financing interest earnings. The provisions do not specify resulting changes to household services or tax credits.
Racing prize money follows set shares
Racing licensees and a group representing most Maryland owners and trainers must agree on an open purse distribution formula. The Racing Commission must approve it. About 85% goes to current-year overnight races. About 15% goes to current-year stakes races, with a firm 17% ceiling.
Rental vehicles follow standard registration fees
Rental vehicles now pay the annual registration fee for their vehicle class under the general schedule. The separate rental-vehicle fee schedule no longer applies. The supplied provision gives no class fee amounts or estimate of changes in rental prices.
Required extra state pension payments end
The law keeps the required $50 million supplemental state pension contribution for fiscal year 2025. It removes required supplemental contributions in later years. The former rule continued those payments until the retirement systems reached 85% funding. Pension recipients' benefit amounts do not change under this provision.
State reserve deposit requirement temporarily waived
For fiscal year 2026, the Governor is exempt from the usual balance-based deposit requirement for the Revenue Stabilization Account. The waiver applies when the account holds less than 7.5% of estimated General Fund revenue. Normal balance-based rules continue in other years, subject to the law's other exceptions.
Surplus money supports investment and retirees
For fiscal 2024, the law requires allocations from unappropriated General Fund surplus above $10 million. The Equity Investment Fund receives 10%, capped at $10 million; the retirement system receives 15%, capped at $15 million. The retiree health trust receives 25%, capped at $25 million. Surplus is measured on June 30 of the second preceding fiscal year, and another required appropriation can reduce these amounts. The broader surplus-allocation requirement applies to fiscal 2007–2023.
Licensing balances can fund behavioral health
The Governor may transfer money from eight health licensing funds to the Behavioral Health Administration by June 30, 2026. Authorized amounts are $1,570,750 from physicians; $837,313 from audiology, hearing aid, speech-language, and music therapy licensing; and $418,756 from dietetic practice. They also include $119,022 from acupuncture, $40,699 from chiropractic examiners, and $2,848,653 from professional counselors and therapists. The remaining amounts are $633,191 from occupational therapy and $465,315 from psychologists. The transfers are optional, and the law does not specify changes to licensing or patient services.
Medicaid gains temporary litigation funding option
For fiscal year 2026 only, Maryland can use an account holding certain litigation payments to pay Medicaid expenses. Otherwise, distributions can only replace required General Fund appropriations for historically Black colleges and universities. This temporarily broadens the account's use without changing Medicaid eligibility or covered benefits.
Nursing board gets flexible, separate funding
The Board of Nursing can use its fund for infrastructure operations. Spending must cover actual, documented direct or indirect costs of its legal duties. Unspent money stays in the fund and cannot go to the General Fund. Other state money cannot support the fund.
Opioid funds can replace existing spending
In fiscal 2025 and 2026, agencies can use Opioid Restitution Fund money to replace other funding for covered programs. The usual rule requiring this money to add to existing funding does not apply during those years. No spending amount or service increase is guaranteed.
Paid leave program gets repayable financing
The Comptroller must transfer $37.3 million from the local reserve account to the Division of Paid Leave by July 31, 2025. The Labor Department must repay the account within two years after Family and Medical Leave Insurance Fund contributions begin. This finances the program but does not set household eligibility or benefit amounts.
Property fund can cover agency operations
In fiscal years 2026 and 2027, the Department can use up to $11 million annually from the Real Property fund for general operations. This temporarily relaxes the existing limit on funding the Director's administrative expenses. Money used for operations is unavailable for other fund uses.
Loan reserves can support school funding
The Governor may move $9 million from the Resilient Maryland Revolving Loan Fund to the Blueprint for Maryland’s Future Fund. The optional transfer must occur by June 30, 2025. The law does not specify how the receiving fund uses this money or how individual households are affected.
Racing purses can support worker pensions
The Maryland Racing Commission can direct a deduction from open purse money to support the Backstretch Employees Pension Fund. The deduction equals 0.25% of all mutuel betting pools. It occurs only when the Commission directs it and leaves less purse money for other distributions.
Business buyers can handle digital taxes
Business buyers can give sellers a completed multiple-points-of-use certificate at purchase for covered digital products and services. Buyers must know the item will be used across tax jurisdictions or resold unchanged within an affiliated group or related pass-through entities. The certificate relieves sellers of collection and payment duties, while buyers take responsibility for reporting and paying the tax. Buyers must use a reasonable, consistent method backed by records existing at sale that accurately reflects Maryland primary use. Specified reselling affiliates also assume or can owe tax on the Maryland share.
Business credit reserves follow new rules
More Jobs for Marylanders credit money moves from the Reserve Fund after notice that a final credit amount is certified. The transfer to the General Fund equals the credit shown on the business’s initial certificate. The rule retaining unused certificate authority in the Reserve Fund applies only through fiscal 2025. These changes do not specify a change in household credit eligibility or amounts.
Electronic gaming taxes fund state priorities
Starting in fiscal 2026, $8.5 million annually from specified electronic gaming tax revenue goes to the Maryland E-Nnovation Initiative Fund. The remaining revenue goes to the General Fund. This covers revenue from the 20% state tax on electronic bingo and electronic tip jars, not a new household tax.
Potomac Edison refunds get interest formula
Sales and use tax refunds from the final Potomac Edison court decision use a case-specific annual interest formula. The rate equals the Federal Reserve's average bank prime rate for large businesses during the 12 months before the decision month. The Comptroller rounds it to the nearest whole percentage point. This rule does not apply generally to other taxpayers.
Revenue forecasts delay income tax cushion
Maryland reduces revenue estimates when the expected share from income taxes not withheld from pay exceeds its 10-year average. The reduction cap is $0 in fiscal 2024–2029, so this rule makes no reduction during those years. Starting in fiscal 2030, the cap is 2% of total General Fund revenue. This changes budget forecasts, not household tax liability.
Specified sales taxes support general spending
After required distributions, the Comptroller sends the specified sales and use tax revenue to Maryland’s General Fund. This allocates state revenue rather than creating a household payment or tax obligation. The law states no dollar amount for this transfer.
Sponsors & Cosponsors
Sponsors
There is no primary sponsor on record.
Cosponsors
There are no cosponsors for this bill.
Roll Call Votes
House vote • 4/7/2025
Third Reading Passed
Yes: 94 • No: 46
Senate vote • 4/7/2025
Third Reading Passed
Yes: 29 • No: 18
House vote • 4/7/2025
Motion Vote Previous Question (Delegate J. Lewis) Adopted
Yes: 97 • No: 41 • Other: 2
Senate vote • 4/1/2025
Third Reading Passed
Yes: 29 • No: 18
Senate vote • 3/31/2025
Floor Amendment {133120/1 (Senator Gallion) Rejected
Yes: 13 • No: 31 • Other: 2
Senate vote • 3/31/2025
Floor Amendment {243028/1 (Senator Corderman) Adopted
Yes: 44 • No: 0 • Other: 2
Senate vote • 3/31/2025
Floor Amendment {333522/1 (Senator Mautz) Rejected
Yes: 17 • No: 27 • Other: 2
Senate vote • 3/31/2025
Floor Amendment {543626/1 (Senator Ready) Rejected
Yes: 19 • No: 26 • Other: 1
Senate vote • 3/31/2025
Floor Amendment {993726/1 (Senator Gallion) Rejected
Yes: 17 • No: 26 • Other: 3
Senate vote • 3/31/2025
Floor Amendment {223623/1 (Senator Carozza) Rejected
Yes: 13 • No: 30 • Other: 3
House vote • 3/26/2025
Third Reading Passed
Yes: 93 • No: 46 • Other: 1
House vote • 3/25/2025
Committee Amendment (#46) Adopted
Yes: 90 • No: 47
House vote • 3/25/2025
Motion Vote Previous Question (Delegate J. Lewis) Adopted
Yes: 94 • No: 37 • Other: 5
House vote • 3/25/2025
Floor Amendment (Delegate Grammer) Rejected
Yes: 39 • No: 93 • Other: 4
House vote • 3/25/2025
Floor Amendment {883629/1 (Delegate T. Morgan) Rejected
Yes: 37 • No: 90 • Other: 7
House vote • 3/25/2025
Floor Amendment {643827/1 (Delegate Pippy) Rejected
Yes: 44 • No: 84 • Other: 7
House vote • 3/25/2025
Floor Amendment {473522/1 (Delegate Griffith) Rejected
Yes: 39 • No: 93 • Other: 4
House vote • 3/25/2025
Committee Amendment (#34) Adopted
Yes: 97 • No: 39 • Other: 2
House vote • 3/25/2025
Floor Amendment {903225/1 (Delegate Buckel) Rejected
Yes: 36 • No: 92 • Other: 7
House vote • 3/25/2025
Floor Amendment {833525/1 (Delegate Buckel) Rejected
Yes: 33 • No: 96 • Other: 7
House vote • 3/25/2025
Floor Amendment {433429/1 (Delegate Valentine) Rejected
Yes: 42 • No: 88 • Other: 6
House vote • 3/25/2025
Committee Amendment (#50) Adopted
Yes: 99 • No: 37 • Other: 2
House vote • 3/25/2025
Committee Amendment (#51) Adopted
Yes: 88 • No: 47 • Other: 2
House vote • 3/25/2025
Committee Amendment (#55) Adopted
Yes: 85 • No: 48 • Other: 4
House vote • 3/25/2025
Committee Amendment (#2) Adopted
Yes: 92 • No: 45 • Other: 1
House vote • 3/25/2025
Floor Amendment {753722/1 (Delegate Schmidt) Rejected
Yes: 39 • No: 92 • Other: 4
House vote • 3/25/2025
Floor Amendment {633327/1 (Delegate T. Morgan) Rejected
Yes: 46 • No: 87 • Other: 4
House vote • 3/25/2025
Floor Amendment {403321/1 (Delegate Hornberger) Rejected
Yes: 38 • No: 87 • Other: 11
House vote • 3/25/2025
Floor Amendment {643722/1 (Delegate Buckel) Rejected
Yes: 41 • No: 91 • Other: 4
House vote • 3/25/2025
Floor Amendment {673225/1 (Delegate Nkongolo) Rejected
Yes: 38 • No: 92 • Other: 4
House vote • 3/25/2025
Floor Amendment {773227/1 (Delegate Tomlinson) Rejected
Yes: 45 • No: 85 • Other: 5
House vote • 3/25/2025
Floor Amendment {623421/1 (Delegate Miller) Rejected
Yes: 36 • No: 91 • Other: 6
Actions Timeline
Approved by the Governor - Chapter 604
5/20/2025Passed Enrolled
4/7/2025HouseThird Reading Passed (29-18)
4/7/2025SenateConference Committee Report {163823/1 Adopted
4/7/2025SenateThird Reading Passed (94-46)
4/7/2025HouseMotion Vote Previous Question (Delegate J. Lewis) Adopted (97-41)
4/7/2025HouseMotion Special Order until after Third Reading calendar (Delegate Barnes) Adopted
4/7/2025HouseConference Committee Report {163823/1 Adopted
4/7/2025HouseSenate advisors: (Senators Salling, M. Jackson and Lewis Young)
4/2/2025HouseSenate Conference Committee Appointed (Senators Guzzone, Rosapepe, Hettleman, Benson and Jennings)
4/2/2025HouseSenate Refuses Recede
4/2/2025HouseSenate advisors: (Senators Salling, M. Jackson and Lewis Young)
4/1/2025SenateSenate Conference Committee Appointed (Senators Guzzone, Rosapepe, Hettleman, Benson and Jennings)
4/1/2025SenateSenate Refuses Recede
4/1/2025SenateHouse advisors: (Delegates Smith, Feldmark, Hinebaugh and Shetty)
4/1/2025SenateHouse Conference Committee Appointed (Delegates Barnes, Atterbeary, Watson, Chang and J. Lewis)
4/1/2025SenateHouse Requests Senate Recede
4/1/2025SenateHouse Refuses Concur Senate Amendments
4/1/2025SenateHouse advisors: (Delegates Smith, Feldmark, Hinebaugh and Shetty)
4/1/2025HouseHouse Conference Committee Appointed (Delegates Barnes, Atterbeary, Watson, Chang and J. Lewis)
4/1/2025HouseHouse Requests Senate Recede
4/1/2025HouseHouse Refuses Concur Senate Amendments
4/1/2025HouseThird Reading Passed (29-18)
4/1/2025SenateSecond Reading Passed with Amendments
3/31/2025SenateFloor Amendment {333522/1 (Senator Mautz) Rejected (17-27)
3/31/2025Senate
Bill Text
Enacted
5/20/2025
Enrolled
4/7/2025
Third Reading
3/25/2025
First Reading
1/15/2025
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HB 0409, Anne Arundel County - Board of License Commissioners - Part-Time Deputy Chief Inspector - Compensation
HB 0268, Hospitals - Financial Assistance and Collection of Debts - Policies
HB 0176, Davis Martinez Public Employee Safety and Health Act
HB 0297, Maryland Health Benefit Exchange - State-Based Young Adult Health Insurance Subsidies Pilot Program - Sunset Repeal