What to Know about Maryland’s 2026 Legislative Session

Maryland lawmakers have once again entered the Maryland State House  with a challenging fiscal outlook, shifting political dynamics and heightened national uncertainty for the 2026 session.

The state faces a $1.4 billion budget deficit that is expected to grow in future years. Gov. Wes Moore has committed to avoiding new taxes while continuing to make major investments in education, public safety and health care. He is focused on, “kitchen table issues,” such as work, wages and wealth. Legislative leaders, including new House Speaker Joseline Peña-Melnyk and Senate President Bill Ferguson, appear aligned on the need for fiscal caution, although their priorities and their willingness to advance certain proposals differ.

A Deficit-Driven Session

This year’s session will be driven by FY27’s $1.4 billion structural deficit. Projections from the Department of Legislative Services show the problem worsening, with shortfalls expected to reach $3.1 billion in FY28, $3.5 billion in FY29 and $4 billion in FY30. Much of this stems from mandated spending increases under the Blueprint for Maryland’s Future, growing Medicaid obligations, pension liabilities and higher personnel costs.

In his remarks on the first day of the 2026 session, Gov. Moore said, “For the fourth year in a row, I will introduce a balanced budget that makes responsible adjustments to our programs, and we are not raising taxes on the people of Maryland.” He has, thus far, avoided identifying the specific cuts or offsets that will allow the state to maintain discretionary initiatives. Legislative Republicans and some economists argue that Maryland is “spending, but not growing,” noting that the state added more than 3,300 employees during Moore’s first two years in office.

Speaker Peña-Melnyk has instructed Appropriations Chair Ben Barnes to balance the budget while protecting vulnerable communities. Ferguson, for his part, has emphasized the need to focus on affordability and avoid large-scale program expansions. Lawmakers from both parties appear reluctant to rely heavily on the Rainy Day Fund, which economists warn should remain intact given ongoing instability in federal funding and employment.

Education Funding and the Blueprint Debate

Education remains the largest share of state spending and an unavoidable part of the deficit conversation. Gov. Moore’s proposed budget calls for $10.2 billion dollars in total K–12 spending and a $374 million increase over last year, which represents nearly 17% growth since the start of the administration.

About a third of this increase is mandated under the Blueprint. The remaining amount supports discretionary priorities, such as the Academic Excellence Program, expanded literacy and math coaching and modernization of aging school buildings.

Lawmakers are divided on the sustainability of the Blueprint:

• Democrats generally defend the Blueprint’s goals, noting its focus on equity, workforce preparation and long-term economic competitiveness—though some acknowledge that implementation has been uneven and that oversight requirements must be strengthened.
  
  
• Republicans argue that its cost trajectory is untenable during a prolonged structural deficit.

Debate will likely center on phasing requirements, local government funding obligations and what elements of the Blueprint can realistically be maintained during a multi-year deficit cycle.

Energy Costs and the Data Center Squeeze

Energy affordability remains a top issue for both legislators and constituents. Residential electricity rates have increased 44% since 2020. Maryland’s rapid data center expansion is creating unprecedented demand on the grid, with PJM Interconnection projecting 32 gigawatts of new electricity demand by 2030. Meanwhile, PJM expects only 6 to 12 gigawatts of new supply to come online.

Lawmakers across the political spectrum agree that the status quo is not sustainable, but their solutions diverge.

Key Issues to Watch

• Data center responsibility: Proposals requiring large-load facilities to procure or develop their own power sources before receiving firm service commitments.
  
  
• Grid modernization and PJM reform: Legislative pressure on PJM to expedite interconnection processes and address transmission constraints.
  
  
• Renewable energy procurement: Potential authorization for utility-scale solar procurement funded through existing RPS collections.
  
  
• Ratepayer protection: Increasing scrutiny of how data center costs affect residential and commercial bills.

Republicans argue that Maryland’s climate mandates restrict in-state generation and artificially inflate prices. Democrats counter that unchecked data center growth has allowed private operators to shift costs onto ratepayers.

Immigration Enforcement and 287(g) Agreements

With national tensions running high, immigration policy is expected to be one of the most contentious and politically charged issues of the session. Democratic leaders intend to revisit legislation restricting 287(g) agreements, which allow local law enforcement to collaborate with ICE. The uploaded document [BHFS1] details growing concern over aggressive ICE enforcement activity in Maryland and increased arrests of individuals with no criminal history.

Senate President Bill Ferguson now backs eliminating 287(g) agreements, significantly strengthening the bill’s prospects. However, Republican sheriffs warn that removing local cooperation could provoke retaliation from ICE and undermine efforts to detain individuals involved in violent or serious offenses. This clash between public safety concerns and civil rights protections will be a focal point throughout the session.

Health Care Funding, Federal Cuts and the Vax Act

The state’s health care system faces substantial uncertainty due to federal changes expected to cut up to $2.7 billion in Medicaid funding annually and disrupt coverage for an estimated 175,000 Marylanders. Providers warn that the impact on hospitals, behavioral health providers and community clinics will be severe if the state cannot offset losses.

Gov. Moore’s Vax Act aims to give Maryland more control over immunization and preventive care standards by granting the Secretary of Health independent authority to issue recommendations. Supporters view it as a safeguard against rapidly shifting federal policy. Critics argue that it represents an unnecessary extension of state authority into sensitive medical decisions.

While the Vax Act will draw significant attention, legislators will also grapple with broader questions involving provider reimbursement, Medicaid enrollment processes and how to maintain access for low-income residents during a period of federal pullback.

Redistricting, Leadership Dynamics and Legislative Tensions

Redistricting has quickly become one of the most politically sensitive issues of the session. Gov. Moore supports revisiting Maryland’s congressional district boundaries as a counterweight to Republican-led redistricting in other states. His advisory commission will soon issue its recommendations.

The Senate leadership, however, is strongly opposed. President Ferguson has argued that mid-decade redistricting is risky, unnecessary, and misaligned with good governance. He believes a majority of the Senate agrees with him, placing him at odds with both the governor and portions of the House.

The leadership landscape is also evolving. Speaker Joseline Peña-Melnyk enters her first full session with a focus on affordability, accountability and fairness. Her leadership style emphasizes member engagement and a collaborative tone, though her agenda may differ from the Senate’s more conservative fiscal posture.

Juvenile Justice, Civil Liability and Public Safety

Maryland faces serious challenges in juvenile justice compliance. The state leads the nation in violations under the Federal Juvenile Justice and Delinquency Prevention Act, largely due to minors being held in adult jails. A major reform proposal would require all youth cases to initiate in juvenile court, with the option of transferring certain cases to adult court when appropriate.

At the same time, more than 10,000 lawsuits have been filed against the Department of Juvenile Services under the Child Victims Act. A global settlement is widely expected but is unlikely to occur this session. The potential cost could reach billions, adding yet another layer of uncertainty to Maryland’s long-term fiscal picture.

Public safety remains a priority for the governor, who continues to promote an “all-the-above” strategy combining targeted enforcement, community investment, and interagency coordination. However, each proposal will be filtered through the broader deficit conversation.

Additional Issues to Watch

A number of other policy areas will receive attention:

• The Francis Scott Key Bridge reconstruction, now estimated at $5.2 billion, raises concerns about long-term federal support.
• The Attorney General’s Office continues expanding enforcement actions in civil rights, consumer protection and cases involving federal policy.
• Transportation and workforce development remain central to the administration’s economic competitiveness goals, although funding constraints may limit the scope of new initiatives.
  
  

Important Dates

• Jan. 14: GENERAL ASSEMBLY CONVENES
  
• Jan. 21: Final date for the governor to introduce budget bills
  
• Feb. 9: SENATE BILL INTRODUCTION DATE (Senate bills introduced after this date referred to the Senate Rules Committee)
  
• Feb. 13: HOUSE BILL INTRODUCTION DATE (House bills introduced after this date referred to the House Rules and Executive Nominations Committee)
  
• March 9: Final date for introduction of bills without suspension of rules
  
• March 17: Committee Reporting Courtesy Date (Each chamber’s committees to report their own bills by this date)
  
• March 23: Opposite Chamber Bill Crossover Date (Each Chamber to send to other Chamber those bills it intends to pass favorably)
  
• April 6: Budget bill to be passed by both Chambers
  
• April 13: ADJOURNMENT “Sine Die”
  
  

The Bottom Line

The 2026 session will be defined by selective cuts, careful prioritization and limited appetite for programs that require new long-term spending. Stakeholders should expect heightened scrutiny of fiscal notes, increased reliance on regulatory or administrative solutions, and greater emphasis on affordability and operational efficiency. Organizations operating in education, health care, energy, infrastructure or any sector reliant on state funding should prepare for both short-term adjustments and long-term shifts in Maryland’s fiscal strategy.

For more details on how these legislative proposals may impact your organization or to discuss the 2026 session, contact one of the authors.

This document is intended to provide you with general information regarding Maryland’s 2026 legislative session. The contents of this document are not intended to provide specific legal advice. If you have any questions about the contents of this document or if you need legal advice as to an issue, please contact the attorneys listed or your regular Brownstein Hyatt Farber Schreck, LLP attorney. This communication may be considered advertising in some jurisdictions. The information in this article is accurate as of the publication date. Because the law in this area is changing rapidly, and insights are not automatically updated, continued accuracy cannot be guaranteed.