Maryland Senate President Bill Ferguson has warned of potential deeper state budget cuts due to President Donald Trump’s executive orders and Republican tax proposals. The legislation aims to cut taxes for the wealthy and shift more Medicaid costs to states, which could have a devastating impact on Maryland. Currently, there is a 50/50 split between states and the federal government on Medicaid costs, but changes are expected.
Ferguson highlighted the potential impact on Maryland’s budget, stating that cuts to Medicaid and shifts in cost-sharing could result in the state having to find several hundred million dollars in additional cuts and savings. The downsizing of the federal workforce, as proposed by the president, would also affect tax revenue for Maryland, as civil servant positions are eliminated.
Governor Wes Moore expressed concern over the Trump administration’s executive orders and efforts to cut the federal workforce, acknowledging the state’s dependence on the federal government. He outlined steps to wean Maryland off this reliance by investing in industries such as life sciences, IT, aerospace, and defense.
The Maryland state Republican legislative leaders have taken issue with some parts of the governor’s 2026 budget proposal, particularly regarding tax code changes and new or increased taxes and fees. The impact of the federal government’s actions on Maryland’s budget and economy remains a pressing concern for state officials and lawmakers, who are considering all options, including a special session to address the challenges ahead.
Note: The image is for illustrative purposes only and is not the original image associated with the presented article. Due to copyright reasons, we are unable to use the original images. However, you can still enjoy the accurate and up-to-date content and information provided.
