Friday Five
Sept. 18, 2026 | This week's latest on Maryland business and government
1 — Tax and fee hikes on the table next year, lawmakers say
Maryland faces projected multibillion-dollar budget shortfalls in the coming years, prompting lawmakers to consider a mix of spending cuts, state tax increases and giving local governments greater authority to raise revenue. The debate could shift more of the state’s fiscal burden to local taxpayers and businesses, with potential implications for costs and Maryland’s competitiveness.
Our take: Addressing Maryland’s long-term budget challenges requires a balanced approach that prioritizes responsible government spending and targeted spending reductions while advancing policies that grow the economy, create jobs and expand the state’s tax base. The Maryland Chamber supports fiscal solutions that strengthen Maryland’s competitiveness and generate sustainable revenue through economic growth, rather than placing additional costs on businesses through new or increased state and local taxes and fees.
2 — Budget officials ask agencies to tighten belts, including a 10% cut scenario
Maryland budget officials are asking state agencies to prepare fiscal 2028 budget requests with roughly 3 percent reductions, while two dozen Cabinet-level agencies must also outline scenarios involving cuts of up to 10 percent. The planning comes as Maryland faces a projected $3 billion structural budget gap next fiscal year, with officials weighing spending decisions ahead of the 2027 session.
Back to the Blueprint: FY2028 is the first year in which costs of the Blueprint for Maryland’s Future education plan will exceed dedicated revenues. To cover the balance, the state will have to dip into the general fund. The state’s “sizable and growing out-year budget gaps” were cited in May by Standard & Poor’s when it downgraded the outlook on the state’s debt to negative.
3 — Trump EPA to strip greenhouse gas limits for power plants, a key Biden climate policy
The U.S. Environmental Protection Agency is moving to repeal Biden-era greenhouse gas limits for coal- and natural-gas-fired power plants, with EPA arguing the changes will reduce compliance costs and support reliable, affordable energy. The agency is also proposing to eliminate remaining federal greenhouse gas standards for power plants, a move environmental groups and supporters of stronger climate regulations oppose.
Maryland context: Maryland power plants remain subject to state and regional requirements, including the Regional Greenhouse Gas Initiative. The federal rollback changes the regulatory landscape for fossil-fuel generation nationally but does not eliminate Maryland’s existing state-level requirements.
4 — Developers say housing regulations drive up costs that price Marylanders out of homeownership
Maryland developers say complex state, local and federal regulations, along with permitting delays and uncertainty, are driving up housing costs and making it harder to build new homes. State housing officials acknowledged regulations are a factor but emphasized that high costs also stem from land, construction, financing, taxes and fees, with Maryland facing a housing shortage of roughly 100,000 units.
Quoted: “42 percent of young renters say they’re considering leaving the state. The reason they cite: high housing costs,” Maryland Housing Secretary Jake Day said. “91 percent of full-time workers say that affordability is a huge or medium obstacle to homeownership."
5 — Maryland’s roads are deteriorating, repair funding is not keeping up
Maryland’s transportation forecasts show pavement conditions worsening, with the share of roads in poor condition projected to rise from 10 percent in 2024 to 13 percent by 2028 under current funding levels. The state’s FY2027 plan includes about $194 million for resurfacing and rehabilitation, below the roughly $400 million annually that transportation industry leaders say is needed to maintain the state's system.
Why it matters: Maryland’s deteriorating road conditions underscore the need for sustainable, long-term transportation funding. A strong Transportation Trust Fund is essential to maintaining the state’s infrastructure, supporting Maryland’s economy and ensuring the safe and efficient movement of people and goods.
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The Maryland Chamber of Commerce is the state’s leading business advocacy organization — committed to working with our alliance of partners on critical public policy issues. With a focus on economic development and grassroots advocacy, we impact policies that directly affect Maryland business.
