Maryland General Assembly – Final Session Report 2025
After a tumultuous 90-day session, the Maryland General Assembly ended on time at midnight on Monday, April 7th. The legislature spent a majority of the 2025 session combatting national policies introduced by Trump which kept them in a reactive posture for most of the duration.
At the end of session (Sine Die), House Speaker Adrienne A. Jones and Senate President Bill Ferguson, both Democrats, announced plans to create a bipartisan joint committee on Federal Action Oversight made up of 26 members of the Maryland Legislature. The purpose of the committee is to monitor and keep legislators informed of changes in federal policies, funding, and regulations. This oversight will enable the General Assembly to respond quickly to safeguard the interests of Maryland and its residents.
The following are some of the major issues that came out of this chaotic session:
Budget/BRFA Budget Reconciliation and Financing Act
- There are two budgets every year (operating & capital) and the BRFA and they all must pass and be balanced each year
The operating budget is the main one that you hear about every year. That is the one that helps government keep running. - Capital budget is the funding for capital projects like transportation projects, pet projects in legislator’s districts, new trauma centers for hospitals, etc.
- The BRFA is the accompanying bill that serves to balance the budget via cost cutting or raising taxes.
- The Maryland budget is roughly $68 billion
- $3 billion deficit going into legislative session 2025
- Underperforming sales tax and lottery revenues
- Economic disruptions from the pandemic
- Unfunded mandates like the Blueprint for Education & the Climate Solutions Now Act
- Governor Moore released his proposed budget with $2 billion in cuts in mid-January and that is used as a starting point for the legislature.
- End result this year was $2 billion in cuts and $1.6 billion in new taxes
- New taxes include:
- New tax brackets for the wealthy 6.25% for those making $500k or more; 6.5% for those making $1 million or more
- 2% surcharge on capital gains for taxpayers with federal adjusted gross income over $350k
- Increased limits for local ‘piggy back’ taxes from 3.2% to 3.3%
- 3% sales tax on information technology (tech tax). It is still unclear exactly what is included in this but the Comptroller is expected to issue more guidance in June 2025. Information technology services, cloud storage services, data services.
- Pass-through Entity Tax Amendment – Effective for tax years starting in 2026, if a PTE elects to pay tax on behalf of all its members, a resident member’s tax liability will be based on the PTE’s total income (not apportioned) and a non-resident member’s tax liability will be based on the PTE’s Maryland apportioned income. Technical corrections are expected to this portion next legislative session.
- Vehicle excise tax up to 6.5% from 6%
- New tire fee $5 per tire
- Vehicle emissions Inspection fee up to $30 from $14
- Vehicle registration fees are increasing again
- Short-term Rental Vehicle tax – 3.5% from exempt
- Cannabis sales tax to 12% from 9%
- Sports betting tax from 15% to 20%
- Vending machine sales tax of 6%
Energy
- On the last day of session, leadership pushed through an energy package that combined three of the, close to 100, energy bills that were filed this session.
- Next Generation Energy Act (HB 1035/SB 937):
- Takes subsidies for trash incineration out of the renewable energy portfolio
- Promotes battery storage deployment for renewable energy
- Requiring utilities to justify spending on new natural gas pipelines
- Fast tracks new permitting for new gas plants
- Requires that utilities demonstrate customer benefits in order to earn a multiyear rate plan that allows companies to set rate increases for several years at once.
- Renewable Energy Certainty Act (HB 1036/SB 931) which created uniform standards for solar energy projects;
- Energy Resource Adequacy and Planning Act (HB 1037/SB 909) which creates a new government office focused on energy planning.
- Bars local governments from making zoning changes that prohibit solar and energy storage projects from being developed.
Environmental groups are upset about the language promoting new gas-fired power generations.
The Procurement Reform Act of 2025 (HB 500)
- Comprehensive procurement reform was last implemented in 2017 with the enactment of Chapter 590, which centralized the procurement process for most agencies under the Department of General Services (DGS) and created the position of Chief Procurement Officer (CPO) for the Executive Branch.
- HB 500 expands the responsibilities of the CPO and the Special Secretary or the Office of Small, Minority, and Women Business Affairs to expedite the review and implementation of State contracts.
- The language gives the CPO the authority to approve agencies’ use of intergovernmental cooperative purchasing agreements, and oversight over the Employment Works Program is transferred to the Special Secretary from DGS.
- The bill delegates authority over transportation-related services and supplies, including information technology supplies and services, to the Maryland Department of Transportation.
- Previous law required that contracts valued between $50,000 and $500,000 be reserved for small businesses under the Small Business Reserve (SBR) program. This bill expands the program by moving the bar up to $1 million.
- The bill authorizes units to require bidders and offerors to submit workforce diversity plans and supplier diversity plans prior to the award of a contract over specified amounts.
- The bill requires that specified contracts not categorized as public work contracts use apprentices or interns and establishes fines for failure to comply.
Protect our Federal Workers Act (HB 1424/SB 683)
- As part of an effort to reduce the size of the federal workforce, thousands of federal workers have been laid off since President Donald Trump took office on January 20, 2025.
- HB 1424 establishes the Expedited Hiring Program in the Department of Budget and Management for the purpose of hiring former federal employees for vacant skilled and professional service positions in the State Personnel Management System.
- An appointing authority may recruit for a vacant skilled and professional service position and must aim to complete the recruitment for the position within 40 days.
- The budget appropriates $2 million for this purpose.
Maryland Second Look Act (HB 853)
- Previously, the Juvenile Restoration Act allowed an individual convicted as an adult for an offense committed when the individual was a minor to file a motion with the court to reduce the duration of the individual’s sentence if the individual was sentenced before October 1, 2021 and has served at least 20 years of the sentence imposed.
- HB 853 expands application of the JRA to allow an individual to file a motion the reduce the duration of the individual’s sentence if the individual:
- Was convicted of an offense when the individual was at least age 18 but younger then age 25;
- Was not sentenced to life without the possibility of parole;
- Is not a sex offender;
- Has been imprisoned for at least 20 years for the offense; and
- Was not convicted of murder involving a victim who was a first responder who was killed in the line of duty.
- The bill also expands provisions of the JRA to provide that:
- A victim or victim’s representative may submit a victim impact statement to the court regarding the proposed sentence reduction;
- The court must order an individual to stay away from and refrain from contact with a victim and a victim’s family, unless the victim requests otherwise; and
- The court may impose any other conditions necessary to promote victim safety and peace of mind.
Registered Apprenticeship Investments for a Stronger Economy (RAISE) Act (SB 431)
- Establishes the Maryland Office of Registered Apprenticeship Development (MORAD) within the Maryland Apprenticeship and Training Program (MATP) to scale registered apprenticeships across industries to meet the needs of the state economy.
- Creates the Registered Apprenticeship Qualified Intermediary Program within MATP to increase apprenticeship awareness, connect employers and labor organizations with partners, and provide technical assistance to launch and expand apprenticeships.
- Creates the Registered Apprenticeship Development Advisory Board to advise MORAD on the strategy to achieve its mission of expanding registered apprenticeship opportunities in the state;
- Establishes the Maryland Pay Per Apprentice Program and associated special fund to provide grants to employers and sponsors to develop a well-trained, productive workforce that meets the needs of the state’s economy and help offset apprenticeship costs.
- The bill also establishes a one-to-one ratio of journey workers to apprentices and requires the Maryland Apprenticeship and Training Council to review and recommend ratio deviations.
