ANNAPOLIS, MD—Governor Wes Moore on Monday released a supplemental budget proposal for fiscal year 2026, outlining adjustments to the previously proposed budget. The supplemental budget focuses on providing additional funding for critical programs, implementing cost-saving measures, and aligning with evolving economic conditions.

One of the most significant changes is a nearly $300 million increase in funding for the Developmental Disabilities Administration (DDA) over fiscal years 2025 and 2026. This adjustment reflects updated cost projections based on actual expenses through January 2025 and anticipated savings from planned cost containment actions. The appropriation includes $143 million in General Fund appropriations for FY 2025 and $154 million for FY 2026.

The supplemental budget also includes $37 million to support the implementation of the Maryland Department of Labor’s Paid Family and Medical Leave (FAMLI) program. This funding will allow the department to extend the program’s implementation timeline by 18 to 24 months due to uncertainties at the federal level.

Other key investments outlined in the supplemental budget include $15 million to fund the Registers of Wills’ full operating costs in fiscal year 2026, pending legislative approval of the Governor’s proposed elimination of the Inheritance Tax.

Additionally, $9 million has been allocated to manage a potential surge in unemployment insurance claims and expedite the hiring of former federal employees impacted by recent administration changes.

To balance these increases, the Governor has proposed $80 million in reductions to initiatives funded by the Strategic Energy Investment Fund, redirecting these funds to provide additional General Fund relief. The budget also includes $37 million in reductions to proposed statewide salary increases for non-union executive branch staff in fiscal year 2026, while maintaining wage increases for unionized employees. The supplemental budget increases funding from $90 million in FY 2025 to $100 million in FY 2026 for climate action initiatives and low income energy assistance by 60%.

Governor Moore emphasized his commitment to collaboration with the Maryland General Assembly in finalizing a budget that prioritizes the needs of the people of Maryland. He stated, “At a time of instability and challenge for our state and country, this budget proposal promotes certainty and results. We continue to be guided by three clear principles — reform the tax code and give the middle class a tax break, make Maryland more business-friendly as we grow and diversify our economy, and invest in our people.”

This article was written with the assistance of AI and reviewed by a human editor.