(The Center Square) – Maryland lawmakers returned to Annapolis this week as Gov. Wes Moore began outlining his priorities for the 2026 legislative session, with a projected $1.5 billion budget shortfall shaping early budget discussions.
State budget analysts project Maryland is heading into the session with a General Fund shortfall of about $1.5 billion in fiscal year 2027. According to the Maryland Department of Legislative Services, the shortfall “represents a significant change in circumstance” from earlier forecasts and is being driven by higher overall spending and lower-than-expected revenue tied in part to federal policy changes.
Those budget pressures form the backdrop for Moore’s early agenda, which includes proposals focused on housing, public safety, education, public health, and economic development. Lawmakers will spend the 90-day session weighing those priorities while working toward a balanced budget.
Housing policy was one of the first areas the administration highlighted. Moore rolled out a package of bills aimed at increasing housing construction, particularly near transit stations and on state-owned land. The proposals focus on easing zoning rules, financing hurdles, and regulatory delays that state officials say add costs and slow development.
Public safety funding is also a key part of the governor’s plan. Moore proposed $124.1 million for the State Aid for Police Protection Program as part of his fiscal year 2027 budget proposal.
Education remains one of the largest components of the state budget. Moore is proposing $10.2 billion in funding for Maryland’s K-12 public school system in fiscal year 2027. The plan includes higher per-pupil funding, money for school construction and modernization, and additional support for literacy and math programs. Education spending already accounts for a significant share of state spending and is a major factor in long-term budget planning.
The administration also introduced the Vax Act of 2026. The proposal would give Maryland’s health secretary expanded authority to issue vaccine and immunization recommendations based on scientific and clinical guidance. The bill would preserve insurance coverage for vaccines and maintain access through pharmacies.
Moore also outlined an economic proposal, the DECADE Act (Delivering Economic Competitiveness and Advancing Development Efforts Act of 2026). The measure would extend several economic development and tax credit programs tied to research, business attraction and film production.
Budget negotiations during the 2026 session are expected to center on balancing spending commitments with available revenue.
