Annapolis, MD – According to Fox Baltimore, Maryland lawmakers expressed growing concerns over the state’s lack of financial preparation for potentially billions of dollars in child sexual abuse claims during a recent Senate debate on the proposed $70.8 billion budget for fiscal year 2027.
The debate highlighted the implications of the Maryland Child Victims Act of 2023, which eliminated the statute of limitations for civil lawsuits related to child sexual abuse involving state agencies. This legislation has led to a surge in claims, with the Maryland Attorney General’s office reporting 12,305 filings against the state as of March 19, 2026. If each claim were settled at the current statutory cap of $400,000, the total liability could reach at least $4.9 billion, excluding higher-value cases or federal lawsuits not bound by the cap.
During the Senate session on March 17, 2026, Senator Chris West, R-Baltimore and Carroll counties, questioned budget leaders about provisions for these payouts. Senate Budget and Taxation Chair Guy Guzzone, D-Howard County, confirmed that no funds had been allocated in the current budget. West pressed further on assumptions regarding claim settlements, underscoring the absence of a dedicated funding plan despite the volume of pending lawsuits.
The Act, championed by Attorney General Anthony Brown in 2023, aimed to provide justice for survivors by allowing claims regardless of the time elapsed since the abuse occurred. Agencies such as the Department of Juvenile Services have been primary targets, with claims spanning decades of alleged incidents in state facilities.
Lawmakers acknowledged the fiscal challenges amid Maryland’s projected budget deficits, forecasted at $4.1 billion by 2029. Senate President Bill Ferguson, D-Baltimore City, noted that projections like multiplying the cap by claim numbers might overestimate costs, and structured settlements could distribute payments over time. However, he emphasized that the full scope remains uncertain, with a wide spectrum of claims filed.
House Minority Whip Justin Ready, R-Carroll and Frederick counties, warned that the state lacks the reserves to cover such expenses, pointing to the Rainy Day Fund as insufficient for a multi-billion-dollar obligation. He predicted that taxpayers would ultimately bear the burden through future tax or fee increases.
In response to fiscal concerns, lawmakers in the previous year reduced the statutory cap from $890,000 to $400,000 for claims after May 31, 2025, and shifted to a per-person limit to curb exposure. The Maryland Supreme Court upheld the Act’s constitutionality in a 4-3 ruling, enabling claims to proceed.
For context, other states’ experiences illustrate the potential scale. In New Jersey, the first Child Victims Act trial against the state resulted in a $25 million jury verdict in March 2024, following the law’s enactment in 2019. Similarly, a 2025 federal lawsuit against Maryland’s Department of Juvenile Services seeks $300 million in damages for three plaintiffs, exemplifying the high stakes of individual cases.
Supporters of the Act, including survivors, argue it was essential to address long-overlooked abuses, while critics had raised financial warnings that were dismissed during its passage. West noted that many Maryland residents remain unaware of the potential impact on public finances.
Ferguson reiterated the state’s constitutional mandate to balance the budget annually, stating that tough choices—such as cuts, revenue increases, or a combination—would be necessary to address any obligations arising from the Act.
As the 2026 legislative session progresses, the debate over funding these claims continues to intersect with broader budget discussions, highlighting tensions between accountability for past harms and fiscal responsibility. The absence of proactive measures raises questions about how Maryland will manage this growing liability without further straining taxpayers. For more information, visit Fox Baltimore.