(The Center Square) – Gov. Wes Moore testified before multiple legislative committees on Tuesday, advocating for two major bills he says will strengthen Maryland’s economy and workforce: the Delivering Economic Competitiveness and Advancing Development Efforts and the Housing for Jobs Act.
Speaking before the House Ways and Means Committee and the Senate Budget and Taxation Committee, Moore said the DECADE Act would improve Maryland’s economic development programs by eliminating outdated initiatives and replacing them with targeted investments.
“Making these investments is not risky; not making these investments is actually much riskier,” said Moore.
The DECADE Act restructures Maryland’s business incentives, reallocates resources to high-growth industries, and streamlines economic programs to maximize investment returns.
Moore emphasized that Maryland’s economic growth has lagged behind the national average, warning that the state ‘must grow its way out’ of budget challenges. The act includes $128 million in targeted investments focusing on cybersecurity, aerospace and life sciences as high-potential industries.
The bill’s fiscal summary shows a decrease in the general fund revenues by $2.8 million in FY 2026, escalating to $18.8 million in FY 2030, according to the Department of Legislative Services, mainly because of tax credit changes.
Later, Moore testified before the Senate Education, Energy and the Environment Committee and the House Environment and Transportation Committee, voicing support for the Housing for Jobs Act. The bill aims to increase affordable housing options in areas where high housing costs prevent workers from living near their jobs.
Moore framed the bill as a needed response to Maryland’s housing crisis and cited polls that show that the ‘high cost of housing’ is the number one concern among residents. He noted that Maryland ranked 43rd in affordability nationwide and has the least affordable housing market in the region.
He also cited national trends, stating that 35 states are issuing more residential building permits per capita than Maryland, which still permits housing at a rate of 40% below pre-2008 levels.
Jake Day, the Secretary of Housing and Community Development, said the bill is essential for Maryland’s economic competitiveness. “Increasing the availability of housing is essential to building a more competitive Maryland,” said Day.
Still, some county officials raised concerns about the bill’s unintended consequences, including a rigid jobs-to-housing ratio and potential litigation risks for counties.
Frederick County Councilmember MC Keegan-Ayer, speaking on behalf of the Maryland Association of Counties, expressed concerns that the counties had not been involved in discussions before the bill was introduced.
“While it may appear, due to the smaller number of amendments we submitted, that MACo has issues with this bill, the issues this year are quite substantive,” she said.
Frederick County is the fastest-growing county in Maryland, having issued an average of 2,300 new residential building permits per year for the last five years, including during and after the COVID-19 pandemic. Keegan-Ayer warned that if counties continue expanding businesses and job opportunities but do not build housing quickly enough, the legislation could penalize them with job growth that outpaces housing development.
MACo representative Dom Butchko added that the bill’s one-year approval deadline for local jurisdictions to process applications could lead to lawsuits against counties. He cautioned that this could result in scenarios where applicants submit incomplete or incorrect applications, and if the county does not approve them within a year, they could be sued.
The Maryland Municipal League echoed similar concerns, saying that allowing developers to file lawsuits in circuit court rather than through existing land-use review boards could increase legal costs for local governments.
While Moore assured lawmakers that the Housing for Jobs Act does not override local control, some local officials voiced concern over the bill’s enforcement provisions and potential legal challenges.
“Circuit courts lack the knowledge of local zoning and land-use capabilities,” said Angelica Bailey Thupari, speaking for MML. “This bill introduces a new legal avenue that could make it more expensive and time-consuming for counties to process housing applications.”
Bailey also pointed to federal cuts to housing programs, noting that the U.S. Department of Housing and Urban Development plans to cut its workforce by 50%, potentially straining local housing developments.
Despite the concerns, local government representatives stated they remain committed to working with the administration on housing solutions.
Portia Wu, Secretary of the Maryland Department of Labor, testified supporting the legislation, stating that the state had 133,000 jobs open.
“We need more professionals, nurses, teachers, first responders, and school bus drivers,” said Wu, noting that the high housing cost directly impacts the state’s ability to keep prime-age workers.
According to Wu, in 2022, 40,000 Marylanders aged 17-34 left the state, accounting for two-thirds of the state’s outmigration.
Maryland’s labor force participation rate has dropped to 65%, the lowest since the 1970s, showing a decline in the percentage of residents working or actively seeking employment.
These bills come as Maryland faces a nearly $3 billion budget shortfall and economic challenges that could impact long-term growth. According to the State of the Economy Brief from the Maryland Comptroller’s Office, the state has the highest median household income ($108,200) and the lowest unemployment rate (1.8%) nationwide. However, GDP, employment, personal income, and real wage growth have all lagged behind national averages since 2016.
