ANNAPOLIS, MD—Governor Wes Moore today released the administration’s FY 2026 supplemental budget. The supplemental budget includes key adjustments to the proposed FY 2026 budget, reflecting a number of technical corrections and updated projections.
“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,”
said Gov. Moore. “We will continue to move in partnership with the Maryland General Assembly to deliver a final budget that meets each of these goals and confronts crisis with courage.”
Supplemental budget items include:
- Nearly $300 million in additional General Fund appropriation for the Developmental Disabilities Administration across FY 2025 and FY 2026. The appropriation includes $143 million in General Fund appropriation in FY 2025 and $154 million in General Fund appropriation in FY 2026, reflecting updated cost projections based on actual expenses through January 2025 and updated estimated savings associated with the administration’s planned cost containment actions.
- $37 million to fund implementation of the Maryland Department of Labor’s FAMLI program. Given the sweeping and unprecedented changes at the federal level and a high degree of uncertainty for Maryland employers, the department is seeking approval to extend the FAMLI implementation timeline by 18 to 24 months, delaying the collection of new Special Fund revenue to fund implementation costs in FY 2026.
- $15 million to fund the Registers of Wills full operating costs in FY 2026, pending legislature approval of the governor’s proposed elimination of the Inheritance Tax.
- $9 million to manage an anticipated surge in unemployment insurance claims and to help expedite the State’s hiring of former federal employees who have been impacted by Trump Administration personnel and budget action over FY 2025 and FY 2026.
- $80 million in reductions to the initiatives in the Governor’s Allowance funded by the Strategic Energy Investment Fund, diverted to provide additional General Fund relief. The supplemental budget reflects an increase from $90 million in FY 2025 to $100 million in FY 2026 for initiatives to support the State’s climate action plan as well as a 60% increase in funding for low income energy assistance from the fund.
- $37 million in reductions to proposed statewide salary increases for non-union staff across the executive branch in FY 2026. Wage increases for employees who are represented by collective bargaining remain intact.
The Moore-Miller Administration continues to work closely with the Maryland General Assembly to support shared priorities, including recent action alongside Maryland’s budget leaders to restore 94 percent of planned Developmental Disabilities Administration cost containment measures for FY 2025.
Governor Moore remains steadfast in his commitment to working with the General Assembly to create a balanced budget that is responsive to the needs of the people.
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