An Overview of the 2026 Maryland Legislative Session
by Aaron J. Greenfield, Senior Director of Government Affairs
‘The 2026 session of the Maryland General Assembly concluded with lawmakers navigating a challenging economic environment defined by affordability concerns, structural budget pressures, and rising energy costs. For the business community, this session was marked by a mix of fiscal restraint, targeted economic investments, and significant policy debates that will shape Maryland’s competitiveness in the years ahead.
Budget
At the center of the session was the passage of the $70.8 billion Fiscal Year 2027 budget, which closed a projected $1.4 billion deficit without raising new taxes or fees. Instead, lawmakers relied on a combination of spending reductions, fund transfers, and cost containment measures. While the budget preserves a healthy Rainy Day Fund and ends with a modest surplus, it also underscores longer-term fiscal challenges driven by rising education and healthcare costs. Notably, the budget includes targeted business tax relief, continued investment in workforce and economic development initiatives, and strategic funding to diversify Maryland’s economy beyond its traditional reliance on government and healthcare sectors.
Energy
Energy policy emerged as one of the most prominent and contentious issues of the session, driven largely by sharp increases in utility costs for Maryland residents and businesses. In response, lawmakers passed the sweeping Utility RELIEF Act, a comprehensive package aimed at lowering electricity bills and increasing in-state energy generation. The legislation is expected to provide approximately $150 in annual savings for the average ratepayer through a combination of near-term relief—such as scaling back the EmPOWER Maryland surcharge—and longer-term structural reforms to utility regulation.
The final energy package reflects a negotiated compromise between the House and Senate, balancing consumer protections with system reliability and future energy needs. Key provisions include increased oversight of utility rate-setting practices, limits on passing certain costs—such as executive compensation—onto ratepayers, and new requirements for large energy users like data centers to bear the cost of infrastructure upgrades. The bill also promotes additional solar development and streamlines permitting for certain clean energy projects, while drawing on the Strategic Energy Investment Fund to offset near-term costs.
Business
Beyond energy, the session included several business-relevant developments, including efforts to expand public-private partnerships, accelerate infrastructure delivery, and support transit-oriented development as a means of addressing housing supply and workforce accessibility. At the same time, employers closely monitored legislation related to labor, housing, and regulatory requirements—some of which advanced late in the session—highlighting the continued complexity of Maryland’s policy environment.
As the General Assembly adjourns, the overarching theme is clear: affordability—particularly energy affordability—has become a defining issue for both policymakers and the business community. While the 2026 session delivered incremental relief and avoided broad-based tax increases, significant work remains. Structural budget gaps, evolving energy demands, and regional economic competition will continue to test Maryland’s ability to balance growth, sustainability, and affordability in the years ahead.
For businesses operating in Maryland, the outcomes of this session reinforce the importance of continued engagement. The policy decisions made this year will have lasting impacts, but many of the most consequential conversations—on energy markets, infrastructure investment, and long-term fiscal stability—are far from over.
Interested in how policies can or will affect your business, or have other government affairs concerns? Contact our lobbyists to ensure your interests are protected.
