Annapolis, MD – According to FOX Baltimore, the Maryland Senate Budget and Taxation Committee approved a comprehensive $70 billion state budget plan on Friday morning, March 13, 2026, initiating the final phase of legislative deliberations as the session entered its last 30 days.
Lawmakers dedicated nearly two hours to reviewing hundreds of pages detailing agency budgets. The plan incorporates several fund restrictions for various state agencies, contingent upon the submission and publication of reports addressing audit findings and operational improvements. For instance, the Department of Human Services faced $750,000 in restricted funds until it provided a detailed report on the expenditure of assistance payments, foster care maintenance programs, and other financial allocations. Additionally, funding was withheld pending a report on Maryland’s pediatric hospital overstays, highlighting ongoing concerns about healthcare resource management.
To address the state’s projected $1.4 billion budget shortfall, the committee utilized transfers from various funds, including the Strategic Energy Investment Fund. Significant cuts were also implemented across multiple sectors. Senate Budget and Taxation Committee Chair Guy Guzzone outlined key reductions, including $10 million from the Judiciary, $3 million achieved by shifting renal disease patients from Medicaid to Medicare eligibility, $2 million from a biotechnology tax credit, and $4.1 million from the information technology budget. “So bottom line is it’s balanced,” Guzzone stated during the proceedings.
One of the more contentious elements involved a $150 million reduction to the Developmental Disabilities Administration (DDA), a cut originally proposed by Governor Wes Moore. Advocates for the DDA community had organized multiple rallies throughout the legislative session, arguing that the state-level reductions, when combined with federal matching dollars, effectively amounted to approximately $300 million in lost funding. Guzzone described the compromise as “the best of the worst,” noting that about $123 million came from cost containment measures, with the remainder drawn from the General Fund. He emphasized that the General Assembly would backfill necessary amounts to maintain balance. “And again, this is the best situation of some difficult choices,” Guzzone added.
The budget also introduced measures tying approximately $124 million in funding for local law enforcement agencies to compliance with state policies on immigration enforcement. Funds would be withheld until the Governor’s Office of Crime Prevention and Policy verified that agencies had not entered into formal agreements with federal immigration authorities under the 287(g) program. This provision reinforced an emergency bill signed earlier in the session by Governor Moore, which prohibited such agreements; previously, nine jurisdictions participated in the program. Guzzone remarked, “This sort of just backs it up. Let’s just make sure that they’re actually living up to what we passed.”
Further restrictions included $3 million withheld from the Department of Juvenile Services until it submitted a report on its forthcoming substance abuse treatment program, due by August 1, 2026. The committee also mandated reports on the Key Bridge rebuild efforts, with deadlines of July 1, 2026, and January 1, 2027, as well as a status update on Baltimore City’s Red Line transportation plan by September 1, 2026.
Following committee approval, the Senate scheduled debate on the budget plan for early the following week. Upon passage, it would proceed to the House of Delegates for additional review and amendments. With only about 30 days remaining in the legislative session, these steps marked a critical juncture in resolving the Maryland budget challenges amid ongoing fiscal pressures. For more information, visit FOX Baltimore.