All Roll Calls
Yes: 903 • No: 1,529
MarylandSB 02842026 Regular SessionSenateWALLET
Budget Reconciliation and Financing Act of 2026
Sponsored By: Sponsor information unavailable
Signed by Governor
Operating BudgetAdministrative AgenciesAdvance Medical DirectivesAdvertisingAgriculture -see also- Agritourism; Cannabis Prd; Farm; etc.Allegany CountyApplicants and ApplicationsApprenticeships and InternshipsAppropriationsAssisted LivingAwareness and OutreachBaltimore CityBonds -see also- County & Baltimore City Bonds; State BondsBudget and Management, Department ofBudgets -see also- Capital BudgetsCalvert CountyCannabis Administration, MarylandCaroline CountyCharles CountyChild CareChildren (4-12)Climate ResiliencyCommerce and Business -see also- ElectrComm; ForeignTr; etc.Commerce, Department ofCommittee ChangesCommittees and CommissionsCommunity CollegesCommunity DevelopmentCommunity Facilities and ServicesComptrollerConservation -see also- Soil ConservationConstructionContracts -see also- ProcurementCounselors and TherapistsCounties -see also- Chartered Counties; Code Counties; etc.County ExecutivesCrime Prevention and Policy, Governor's Office ofData -see also- Census; DemographicsDebt ManagementDigital Products -see also- Digital ImagesDomestic Violence -see also- Child Abuse & NeglectDorchester CountyDriver EducationDrugs -see also- Cannabis; ControlDangSubst; Pharm; etc.Early Childhood EducationElectronic GovernmentEmergency Management, Department ofEmergency Services -see also- Ambul; Emergencies; etc.Energy Matters -see also- Fuel; NuclearMatt; PwrPlnts; etc.Energy Technology and InfrastructureEnvironmental Matters -see also- Conserv; Nat Resrce; PollutEthicsExemptionsFederal Aid -see also- CARES ActFees -see also- Attys' Fees; Devt Fees & TaxesFood -see also- Meat, Poultry, & Seafood; Milk; etc.Forests and Parks -see also- MdNatlCapPkPlnCm; Plants; etc.Garrett CountyGovernorGrantsGunsHealth -see also- COVID19; EnvHlth; MedCon; etc.Health Benefit ExchangeHealth, Department ofHealth Insurance -see also- ACA; HMOs; MCOsHealth Maintenance Organizations -see also- Manage Care OrgsHealth Occupations -see also- (specific health occupations)Health Services Cost Review CommissionHearingsHeating and CoolingHigher Education -see also- Comm Colleges; Med Schools; etc.Higher Education CommissionHistorical Matters -see also- Archives; Monumts; Museum; etcHotels and MotelsHuman Infrastructure -see also- WLEImmigrants and Citizenship -see also- ResidencyIncome TaxIndustry and ManufacturingInformation TechnologyInsurance AdministrationInterestIntergovernmental Cooperation -see also- AdmAgn; Cmts; etc.Job Training -see also- Continuing Ed; Vocational RehabLabor, Department ofLaw Enforcement -see also- SRO; Sheriffs; State PoliceLegal AidLoans -see also- Credit; Mortgages; Scholarships&SFALocal Government MandatesMedical AssistanceMedical TechnologyMedical TreatmentsMental and Behavioral Health -see also- Aut; Cogn; Dev; etc.Moderate-IncomeMotor Vehicles -see also- Aband Veh; Ambulances; Buses; etc.Motor Vehicle RegistrationMunicipal Corporations -see also- Annap; BaltMuseumsNatural Resources -see also- Coal; For&Pks; Rivers; etc.Natural Resources, Department ofNonprofit OrganizationsNoticesNurses -see also- Nurse Practitioners; Nursing AssistantsOpen GovernmentPhysicians -see also- MedExmnrs; Pediatr; Psychiatrists etc.Planning, Department ofPlants -see also- Invasive Species; Trees; WeedsPower PlantsPrerelease and ReentryPrince George's CountyPrivate Schools -see also- Primary Schools; Secondary SchProgram Open SpacePublic Buildings and Facilities -see also- Stadiums; St HsePublic Employees -see also- State EmployeesPublic InformationPublic Schools -see also- Primary Schools; Secondary SchRacial Matters -see also- Ethnic Affairs; MinoritiesRacingReimbursementsRenewable Energy Sources -see also- Geotherm; Solar; etc.ReparationsReportsRetirement -see also- Mandatory RetirementRevenue and Taxes -see also- (specific tax)Right-of-WayRules and RegulationsRural AreasSalaries and Compensation -see also- Overtime; Reimb. RatesScholarships and Student Financial AidScientific Research -see also- ChemTst; MedRsrch; StudiesSmoking and Vaping -see also- Cannabis; Cigs;Tobacco&NicSoil ConservationSomerset CountySports and RecreationStandards and Best PracticesState Aid -see also- Public BenefitsState EmployeesSt. Mary's CountyStudentsStudies -see also- Commitees & Commissions; ReportsSubstance AbuseSunsetSurveys and PollsTax CreditsTimeTobacco and Nicotine -see also- Cigarettes; Smk&VapTri-County Council for SoMd -see also- CalvCo; ChsCo; StMCoUrban AreasUtilities -see also- Recycl; Refuse; Sewage; Teleph; WaterWashington CountyWicomico CountyWork, Labor, and Employment -see also- JobTrn; Leave; etc.Youth (10-21) -see also- Minors
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Bill Overview
Analyzed Economic Effects
41 provisions identified: 18 benefits, 6 costs, 17 mixed.
2025 student loan credit cap is $16M
For tax year 2025, the total Student Loan Debt Relief Tax Credits available statewide is capped at $16 million. You must apply to the Maryland Higher Education Commission to receive a credit. The cap limits how much credit money is shared among approved applicants.
More energy and grid funding
For FY2027, the state directs about $162 million in one‑time energy and research funding. From 2027 through 2031, compliance fees can fund grants or loans to build new Tier 1 renewable projects, with a focus on overburdened communities. The energy fund can now pay costs for the Air and Radiation Administration, the Power Plant Research Program, and the Environmental Review Program. At least 20% of clean‑energy account proceeds may also support climate mitigation and resiliency programs.
Maryland taxes canceled debt sooner
Beginning January 1, 2026, Maryland makes you include income from canceled debt and related original issue discount items even if federal law lets you defer them. Maryland ignores the federal §108(i) deferral. This can raise your Maryland tax in the year the income is recognized.
Tighter expensing rules for small businesses
Beginning January 1, 2026, Maryland limits Section 179 expensing to pre‑2003 federal levels when figuring state income taxes. This raises Maryland taxable income if you rely on the larger federal expensing limits. The rule does not apply to property placed in service by a manufacturing entity on or after January 1, 2019.
More Jobs credit capped for 2027
For fiscal year 2027, total final More Jobs for Marylanders tax credits are capped at $15 million. If approved credits are higher, the state cuts individual awards proportionally. When a credit is finalized, the Comptroller also moves matching amounts between state funds as required.
Tighter Maryland depreciation and NOL rules for businesses
Beginning January 1, 2026, Maryland tightens several business tax write‑offs. Heavy SUVs (over 6,000 and up to 14,000 pounds GVW) are treated like passenger cars for depreciation. For manufacturers, bonus depreciation is capped at 20% of the property’s basis. Maryland ignores the extra allowance under federal §168(n) and computes NOLs without the federal five‑year carryback election. These changes generally raise Maryland taxable income for affected businesses.
Student loan credits capped; $9M for employees
Maryland caps total Student Loan Debt Relief Tax Credits at $16 million (tax year 2025), $9 million (2026), and $18 million each year after 2026. Each year, $9 million is reserved for State employees, first for those who graduated from in‑State schools with high Pell Grant rates; unused reserved amounts can go to other borrowers. The Commission must report recommendations by December 1, 2026.
Counties must pay set teacher pension amounts
Beginning in FY2027, each county and Baltimore City pays specific annual amounts toward local teacher pension employer contributions. FY2026 amounts are due by January 1, 2026. From FY2027 on, payments are due by September 1 each year. These payments reduce the State’s obligations by the same amounts.
One-time fund shifts to balance budget
The state pauses required deposits to the Rainy Day Fund for FY2026 and FY2027. On or before June 30, 2026, the Governor may move large one‑time amounts into the General Fund, including $380 million from the Local Income Tax Reserve and $259 million from an energy compliance account. A $37.3 million transfer from the Local Reserve Account is due by June 1, 2026. For FY2027 and later, the Comptroller changes when and how transfers tied to tax credit certificates move between funds. Additional transfers in FY2027 replace project money with state bonds, and a $1.24 million transfer directs small amounts to named public‑safety and health programs.
Medicare Advantage aid study for 2026
Maryland studies whether Medicare Advantage plans need help in calendar year 2026 and whether to raise hospital rates to provide up to $140 million in assistance. If rates are raised, up to $14 million from the Population Health Improvement Fund can support the Medical Care Programs Administration, and the budget office may process the needed amendment. This aims to keep plans viable but could affect hospital rates.
Insurers must transfer excess ACA funds
By July 1, 2026, insurers transfer 90% of excess balances from certain ACA segregated accounts into a Dedicated Purpose Account for health care access grants (excess over plan‑year disbursements for 2014–2024). On July 1, 2027 and every July 1 after, they transfer 90% of excess balances measured after a 15‑month period following a plan year. These transfers fund access to care.
FY2027 freeze on certain provider rates
In fiscal year 2027, Maryland does not pay rate increases above January 21, 2026 levels for nonpublic placement providers and for providers rated by the Interagency Rates Committee. Providers are paid at the frozen rates for that year.
Lottery money for racing and community projects
The Comptroller deposits $13.4 million from lottery funds to the Racing and Community Development Financing Fund in FY2026. At least $17 million is deposited each year after, until the racing facility bonds mature. The money supports racing and nearby community projects.
New rules for local police aid
A town qualifies for state police aid if it spends over $5,000 and has one full‑time qualified officer, or spends over $80,000 and has two part‑time qualified officers. The Comptroller must suspend current‑year police aid if a county or town is found out of compliance with state law on immigration enforcement agreements. The jurisdiction can dispute within 30 days. Payments resume after the state certifies compliance.
Assisted outpatient treatment statewide by July 2026
Counties may start assisted outpatient treatment programs by July 1, 2026, or the State will start them in counties that do not. Local behavioral health authorities must approve and oversee the programs. Counties reimburse the State’s costs on a schedule: 25% in FY2028 (waived if a cost–benefit report was filed by January 1, 2027), 50% in FY2029, 75% in FY2030, and 100% in FY2031. The Department provides participant counts and estimated annual costs by August 31, 2026.
One‑time shifts in health funding 2026–2027
For FY2027, $2,000,000 from the Board of Physicians Fund and $500,000 from the Counselors Fund may support Department programs. For FY2027, the usual $8,000,000 payment to the Community Health Resources Commission Fund is not required. For FY2026, separate‑account distributions from the Cigarette Restitution Fund may support Medicaid. On or before June 30, 2026, up to $250,000 may move to the Health Benefit Exchange to help child care workers enroll in health insurance and to run a survey.
New rules for park and open space funds
The law sets how Program Open Space money is split. Half of the remaining funds go to recreation and open space by the Department and Historic St. Mary’s City Commission. At least 20% or $21,000,000 goes to the Forest and Park Service, and at least 0.2% or $200,000 goes to the Department of Planning for Jefferson Patterson Park and Museum. The Heritage Conservation Fund and other Program Open Space funds now count in the state land acquisition balance used for transfers. For fiscal years 2026–2029, $25,000,000 a year from the special fund goes to the General Fund; the rest follows the usual program splits. For fiscal year 2027 only, an extra $71,743,156 goes to the General Fund, and the law replaces the reduced program allocations with general obligation bonds.
School HVAC funds can be reallocated
The Interagency Commission on School Construction can move federal HVAC grant money awarded in fiscal years 2022 and 2023 among eligible public school projects. This keeps the awards in line with the American Rescue Plan Act. Some projects may lose funds and others may gain them.
State rules override local hotel tax deals
Starting January 1, 2029, state tax law controls if it conflicts with a county or city agreement with an accommodations platform. This can change how hotel rental taxes are collected and sent in across Maryland.
Historic plates now use 25 year rule
You can get historic registration if your vehicle is at least 25 years old and not heavily changed. This replaces the old "1999 or earlier" cutoff.
More flexible funding for youth treatment
A $3,000,000 FY2026 appropriation may pay for drug treatment at other child‑serving facilities and to reopen the Alfred D. Noyes Children’s Center for children. This widens where the money can be used to support youth treatment.
Maryland Corps expands over six years
The Maryland Corps Young Adult Service Year pathway sets targets of 200 participants in year 1, 750 in year 3, 1,100 in year 4, 1,550 in year 5, and 2,000 in year 6. The program grows available slots over time.
Ongoing funding for Healthy Soils
The Governor must budget at least $500,000 each year for FY2024–FY2026 for the Healthy Soils Program. The budget must include at least $400,000 each year for FY2027 and FY2028. These funds support farmers and land managers who use Healthy Soils resources.
Interest rule for digital ad tax refunds
If a final court decision finds the digital advertising tax unconstitutional and a refund is due, Maryland sets refund interest to the average prime rate over the prior 12 months, rounded to the nearest whole percent. This gives a clear way to compute interest on refunds.
Budget books posted online at submission
When the Governor sends the budget bill to the legislature, the Governor must publish the required budget books online. This gives the public direct access to budget details at that time.
More money for heritage projects
The state provides $5 million each year to the African American Heritage Preservation Grant Fund. If receipts exceed $5 million, the Secretary may use the extra for non‑building projects. At least $250,000 goes to a nonprofit in FY2026 and again in FY2029 and each year after to run a maritime heritage grant program and file an annual report.
Minimum funding for tobacco control
Maryland budgets at least $18.25 million each year for FY2022–FY2026 and at least $17.52 million each year starting in FY2027 for tobacco control. These funds support quitting, prevention, and related public health work.
FY2027 grants for Blue Line Corridor
For FY2027 only, the state redirects funds to named local projects totaling about $27 million. It includes $18 million for mixed‑use development with a soccer stadium at UMD College Park, $4 million to Velocity Companies, $2 million to Atlantic Pacific Companies, and several smaller community grants.
Support for small historic rehab projects
Maryland must budget at least $2 million each year for FY2024–FY2026 and at least $500,000 each year for FY2027–FY2031 for the Small Commercial Project Trust Account in the Historic Revitalization Tax Credit Reserve Fund. These funds support small commercial historic rehabilitation projects.
Driver education fund can take any money
The Driver Education Fund may accept money from any source. It can be used only for driver education grants and to run the program.
Funding floor for health worker training
Maryland sets minimum funding for the Career Pathways for Health Care Workers Program: at least $1,000,000 through FY2024, $500,000 for FY2025–FY2026, and $350,000 for FY2027 and after. Spending is subject to audit.
Funding floor for public safety apprenticeships
Maryland sets minimum funding for the Public Safety Apprenticeship Program: at least $750,000 each year for FY2021–FY2025, and at least $390,000 for FY2026 and after. These funds support training for public safety jobs.
Labor must repay $37.3M to Local Reserve
The Maryland Department of Labor must repay the Local Reserve Account $37,300,000. The payment is due within two years after contributions into the state’s Family and Medical Leave Insurance Fund begin. This strengthens that local account’s balance.
No retroactive escheat before Oct 2025
The escheat rule in section 5‑650.1 applies only on or after October 1, 2025. Capital credits from before that date are protected from retroactive escheat.
State may seek 2029 behavioral health demo
Maryland may apply, but is not required, to join the Certified Community Behavioral Health Clinic federal demonstration for FY2029. Any application depends on available State budget funds.
Pass‑throughs choose how to count income
If a pass‑through pays the entity‑level tax for all members, it may choose how to compute resident members’ income. It can use each member’s distributive share or only income tied to the Maryland business, and must show the choice on the Comptroller’s form (otherwise the distributive share method applies). The Comptroller studies these changes and reports each year by December 1 through 2029.
Chapter 638 start date moved to 2028
Chapter 638 now takes effect on July 1, 2028, not July 1, 2027. People and entities covered by that law follow its rules starting then.
EMS fund may cover police aviation
From FY2025 through FY2029, the EMS Operations Fund may pay for general operations of the State Police Aviation Command. This temporarily allows EMS dollars to support certain aviation costs.
Reparations panel adds members, extends timeline
Beginning July 1, 2025, the Commission adds a history commission representative, two faith leaders, two public members, and two Governor appointees with legal and financial expertise. The NAACP‑designated seat is now appointed jointly by the Senate President and House Speaker. The Commission must hold at least three public hearings and keep seeking input. A preliminary report is due September 1, 2028, and a final report December 1, 2028. The Commission operates for four years and ends June 30, 2029.
Prescription data retention set by regulation
Maryland removes the fixed three‑year rule for keeping prescription monitoring and naloxone data. The Secretary now sets how long these records are kept by regulation.
When these tax sections start
Section 3 applies to tax years beginning on or after January 1, 2026. Section 4 applies to tax years beginning on or after January 1, 2027. Sections 2 and 3 take effect July 1, 2026.
Sponsors & Cosponsors
Sponsors
There is no primary sponsor on record.
Cosponsors
There are no cosponsors for this bill.
Roll Call Votes
House vote • 3/30/2026
Third Reading Passed
Yes: 92 • No: 23 • Other: 27
Senate vote • 3/30/2026
Third Reading Passed
Yes: 31 • No: 13 • Other: 3
House vote • 3/30/2026
Motion Special Order until 03/31 (Delegate Szeliga) Rejected
Yes: 24 • No: 91 • Other: 27
House vote • 3/26/2026
Third Reading Passed
Yes: 98 • No: 37 • Other: 6
House vote • 3/25/2026
Floor Amendment {983020/1 (Delegate Pippy) Rejected
Yes: 40 • No: 87 • Other: 14
House vote • 3/25/2026
Floor Amendment {913729/1 (Delegate Arentz) Rejected
Yes: 38 • No: 87 • Other: 16
House vote • 3/25/2026
Floor Amendment {493422/1 (Delegate Buckel) Rejected
Yes: 40 • No: 86 • Other: 15
House vote • 3/25/2026
Floor Amendment {693228/1 (Delegate T. Morgan) Rejected
Yes: 44 • No: 88 • Other: 9
House vote • 3/25/2026
Floor Amendment {733920/1 (Delegate Buckel) Rejected
Yes: 44 • No: 86 • Other: 11
House vote • 3/25/2026
Floor Amendment {743226/1 (Delegate Rose) Rejected
Yes: 37 • No: 92 • Other: 12
House vote • 3/25/2026
Floor Amendment {923621/1 (Delegate Miller) Rejected
Yes: 38 • No: 91 • Other: 12
House vote • 3/25/2026
Floor Amendment {363927/1 (Delegate Tomlinson) Rejected
Yes: 36 • No: 91 • Other: 14
House vote • 3/25/2026
Floor Amendment {113226/1 (Delegate Schmidt) Rejected
Yes: 35 • No: 94 • Other: 12
House vote • 3/25/2026
Floor Amendment {493222/1 (Delegate M. Morgan) Rejected
Yes: 37 • No: 91 • Other: 13
House vote • 3/25/2026
Floor Amendment {823321/1 (Delegate Hornberger) Rejected
Yes: 45 • No: 86 • Other: 10
House vote • 3/25/2026
Floor Amendment {173922/1 (Delegate Nkongolo) Rejected
Yes: 37 • No: 94 • Other: 10
House vote • 3/25/2026
Floor Amendment {413129/1 (Delegate Griffith) Rejected
Yes: 41 • No: 88 • Other: 12
Senate vote • 3/18/2026
Third Reading Passed
Yes: 34 • No: 12
Senate vote • 3/17/2026
Floor Amendment {703923/1 (Senator McKay) Rejected
Yes: 14 • No: 30 • Other: 3
Senate vote • 3/17/2026
Floor Amendment {303528/1 (Senator Corderman) Rejected
Yes: 14 • No: 28 • Other: 5
Senate vote • 3/17/2026
Floor Amendment {173121/1 (Senator Folden) Rejected
Yes: 14 • No: 29 • Other: 4
Senate vote • 3/17/2026
Floor Amendment {673521/1 (Senator Hershey) Rejected
Yes: 20 • No: 24 • Other: 3
Senate vote • 3/17/2026
Floor Amendment {173221/1 (Senator Ready) Rejected
Yes: 18 • No: 26
Senate vote • 3/17/2026
Floor Amendment {223926/1 (Senator McKay) Rejected
Yes: 18 • No: 26 • Other: 3
Senate vote • 3/17/2026
Floor Amendment {963023/1 (Senator Gallion) Rejected
Yes: 14 • No: 29
Actions Timeline
Approved by the Governor - Chapter 6
4/8/2026Passed Enrolled
3/30/2026SenateThird Reading Passed (92-23)
3/30/2026HouseMotion Special Order until 03/31 (Delegate Szeliga) Rejected (24-91)
3/30/2026HouseConference Committee Report {743420/1 Adopted
3/30/2026HouseThird Reading Passed (31-13)
3/30/2026SenateConference Committee Report {743420/1 Adopted
3/30/2026SenateHouse advisors: (Delegates Ghrist and Kaiser)
3/30/2026SenateHouse Conference Committee Appointed (Delegates Barnes, Wilkins, Shetty, Acevero and Watson)
3/30/2026SenateHouse Refuses Recede
3/30/2026SenateHouse advisors: (Delegates Ghrist and Kaiser)
3/27/2026HouseHouse Conference Committee Appointed (Delegates Barnes, Wilkins, Shetty, Acevero and Watson)
3/27/2026HouseHouse Refuses Recede
3/27/2026HouseSenate advisors: (Senators Salling, Zucker and Lewis Young)
3/27/2026HouseSenate Conference Committee Appointed (Senators Guzzone, Rosapepe, Hettleman, Augustine and Jennings)
3/27/2026HouseSenate Requests House Recede
3/27/2026HouseSenate Refuses Concur House Amendments
3/27/2026HouseSenate advisors: (Senators Salling, Zucker and Lewis Young)
3/27/2026SenateSenate Conference Committee Appointed (Senators Guzzone, Rosapepe, Hettleman, Augustine and Jennings)
3/27/2026SenateSenate Requests House Recede
3/27/2026SenateSenate Refuses Concur House Amendments
3/27/2026SenateThird Reading Passed (98-37)
3/26/2026HouseSecond Reading Passed with Amendments
3/25/2026HouseFloor Amendment {493222/1 (Delegate M. Morgan) Rejected (37-91)
3/25/2026HouseFloor Amendment {913729/1 (Delegate Arentz) Rejected (38-87)
3/25/2026House
Bill Text
Enacted
4/8/2026
Enrolled
3/30/2026
Third Reading
3/17/2026
First Reading
1/21/2026
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