Maryland Gov. Moore's 2026 supplemental budget includes $360 million in additional funding

Maryland Gov. Wes Moore released his FY2026 supplemental budget Tuesday, which includes $360 million in additions and $117 million in reductions from his initial proposal. 

According to the governor, the updated proposal addresses technical corrections and updated projections. 

"At a time of instability and challenge for our state and country, this budget proposal promotes certainty and results. We continue to be guided by three clear principles — reform the tax code and give the middle class a tax break, make Maryland more business-friendly as we grow and diversify our economy, and invest in our people," Gov. Moore said. 

The governor released his initial 2026 budget proposal in January as the Maryland General Assembly session got underway. 

The budget, which totals $67.3 billion, aims to address the state's $2.7 billion budget deficit. 

Gov. Moore said he is taking an aggressive approach to tackle the state's largest deficit in 20 years by cutting $2 billion in spending. 

According to the governor, the proposed budget does not raise sales or property taxes. Instead, 66% of Marylanders would get a tax cut, 16% would not see a change, and 18% of the state's highest earners would see increases in taxes. 

Additions in supplemental budget 

The governor's supplemental budget proposal includes $9 million to address a surge in unemployment claims and the hiring of former federal workers impacted by layoffs and funding cuts. 

Thousands of federal workers in Maryland have been impacted by President Trump's effort to reduce federal spending and make the government more efficient. 

The additional funding is the latest of several actions that Gov. Moore and other Maryland leaders have taken in the past month to address the ongoing layoffs. 

The supplemental budget includes almost $300 million in additions to the General Fund for the Developmental Disabilities Administration (DDA) for FY25 and FY26. $143 million will be allocated for 2025, and $154 million will be allocated for 2026. Those additional funds will be taken from reimbursements from health programs in past years and a reduction in state employee raises.

The funding allocated to the DDA in the supplemental budget will help maintain the status quo of operations, administration officials said.

Under the governor's initial budget proposal, the DDA will lose $200 million in state funding, impacting some disability services. The additional funding in the supplemental budget will not restore the initial proposed cuts.

Advocates spoke with legislators Monday, saying those initial funding cuts would impact more than 18,000 Marylanders and their families. They acknowledged that progress has been made but said programs and services for disabled people are historically underfunded. 

The Moore-Miller administration has substantially increased funding to the DDA over the past few years. 

Gov. Moore's 2026 supplemental budget proposal also includes $37 million to fund the delayed launch of the state Department of Labor's Family and Medical Leave Insurance (FAMLI) program. 

The FAMLI program will provide job protection to workers who need to take time off to care for themselves or a family member. Under the program, workers would be paid up to $1,000 per week for up to 12 weeks. Employers and workers would need to opt in and make contributions to a state-administered fund.

The program is set to launch in July 2026, though in mid-February, the Maryland Department of Labor proposed delaying the program due to the Trump administration's push to shrink the federal workforce. 

"Recent sweeping, unprecedented changes at the federal level have given rise to a high degree of instability and uncertainty for Maryland employers and workers," the department said in a statement. 

The governor's proposal seeks to approve a delayed timeline of 18 to 24 months. This would delay the collection of contributions to a special fund that would be used to implement the program. 

The supplemental budget includes $15 million to fund the Registers of Wills operating costs in 2026, pending the elimination of the inheritance tax, a move Gov. Moore proposed. 

Among the $117 million in reductions, the governor's supplemental budget proposes $80 million in cuts to initiatives in the Governor's Allowance. Those funds would be diverted to the General Fund. This means $100 million in 2026 would be used for initiatives to support the state's climate action plan. 

Gov. Moore also included $37 million in reductions to a proposed statewide salary increase for non-union staff in the executive branch in 2026. Wage increases for employees represented by collective bargaining would remain intact. 

Reaction to 2026 budget proposal 

Several advocacy groups in Maryland have raised concerns about proposed cuts. 

Behavioral health advocates said $116 million in proposed cuts would impact young residents. In February, a group of advocates called on Maryland lawmakers to restore the funding, saying the proposed cuts would impact behavioral healthcare at every level. 

The Maryland Chamber of Commerce also raised concerns, saying that Gov. Moore's proposed tax plan could devastate small businesses. 

"The message we're sending to entrepreneurs and businesses with this type of legislation is clear,  your investment and job creation isn't valued here, and I think that's a very dangerous message to send," said Greg Brown, owner of Brewers Alley in Frederick. 

Advocates for the Chesapeake Bay also urged lawmakers to carefully consider their decisions on the proposed budget, saying the funding shortfall could have major impacts on restoration efforts.