Friday Five
Feb. 6, 2026 | This week's latest on Maryland business and government
1 — Maryland is farther behind on its emissions goal than expected, new research shows
New modeling from the University of Maryland’s Center for Global Sustainability shows Maryland is projected to cut greenhouse gas emissions by about 42 percent from 2006 levels by 2031 under current state and federal policies, well short of the state’s 60 percent reduction goal. Researchers say changes in federal policy, slower adoption of electric vehicles and renewable energy, underestimated energy demand from data centers, and delayed retirement of fossil-fuel plants have all contributed to the revised outlook, prompting climate experts to urge stronger actions and investments to close the gap.
Emissions drop: The Maryland Department of the Environment also unveiled its official greenhouse gas inventory for 2023 Thursday, showing emissions for the year were 29 percent below 2006 levels.
2 — Maryland residents leave state amid skyrocketing housing costs, higher taxes; lawmakers push solutions
Rising housing costs are pushing many Maryland residents to relocate to more affordable neighboring states, contributing to the state’s ranking among the top 10 for net domestic population loss in recent years. State leaders, including Governor Moore and Comptroller Brooke Lierman, argue that boosting housing supply through zoning reform, higher density and faster permitting is essential to retain residents and grow the tax base, though local governments and counties have raised concerns about community impact and environmental rules. Lawmakers are weighing multiple bills aimed at encouraging smaller, more affordable homes and streamlining development, while acknowledging that factors such as interest rates, taxes and quality-of-life issues also influence why people flea the state.
Taxpayers gone like the wind: Over the period of 2010 and 2023, 2.3 million people moved to neighboring states.
3 — Moore bashed Trump’s economic agenda, while also copying parts of it
Governor Moore’s proposed FY2027 budget includes more than $100 million in business tax cuts that align with elements of President Trump’s "One Big, Beautiful Bill," even as Moore publicly criticizes Trump’s economic agenda. The plan expands deductions for research and development, business interest and equipment purchases, which Moore’s administration says will help grow and diversify Maryland’s economy, while Republicans argue it reflects quiet agreement with GOP ideas. Economists and some lawmakers warn the approach could strain future budgets and do little to influence business location decisions, though leaders in both parties acknowledge pressure to improve Maryland’s competitiveness and private-sector growth.
Quoted: “Maryland has a negative business reputation and attracting and retaining private sector investment and job creators has been a struggle,” House Minority Leader Jason Buckel said. “It’s important that businesses in Maryland have the ability to utilize these credits, as they would in many other states in our region.” Ammar Moussa, Moore’s senior press secretary, said the governor is "focused on results, not partisan hackery."
4 — Should data centers pay up front, or build their own power?
Maryland and regional energy policymakers are debating how to handle soaring electricity demand from data centers, with proposals weighing whether these facilities should pay for grid upgrades up front or build their own generation capacity as part of their development. Supporters of requiring data centers to bring their own power say it could protect consumers from bearing the costs of new infrastructure and ease grid reliability concerns, while opponents worry it could complicate data center operations and investment. The grid operator PJM and state leaders are considering a range of reforms to balance cost, reliability and growth as electricity use linked to artificial intelligence and cloud computing expands.
Meet our grid operator: PJM was established in 1927 to improve efficiency and reliability between electric utilities in Pennsylvania and New Jersey. Maryland later joined, giving the organization its three-letter name. It has since expanded to cover 13 states and the District of Columbia, serving 67 million customers.
5 — Little to gain by raising taxes on rich
Raising the top federal income tax rate would generate very little additional revenue while slowing long-term economic growth, according to economists at the Joint Committee on Taxation. Their research shows that rates between roughly 30 and 45 percent yield nearly the same total revenue, with higher rates incentivizing wealthy individuals and pass-through businesses to legally reduce their tax burdens. Increasing the top rate may reduce GDP and job growth significantly, making the small revenue gains largely negligible. The U.S. tax and transfer system already effectively reduces income inequality, suggesting that further progressivity at the top offers limited practical benefit.
Bottom line: Making an already progressive income tax a little more progressive isn’t worth the trouble.
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