Governor Moore Signs FY 2026 Budget and Legislation to Modernize State Government During Final 2025 Bill Signing Ceremony

Published: 5/20/2025

Governor Moore at bill signing
ANNAPOLIS, MD — Governor Wes Moore today presided over the fifth and final bill signing ceremony of 2025, which included the governor’s Procurement Reform Act of 2025 and the Budget Bill for FY 2026. The legislation signed today turns the state’s budget deficit into a surplus and enacts procurement reform to increase transparency and ensure that small businesses have fair access to state contracts. 

During the ceremony, the governor spoke to the historic challenges Maryland faced during the legislative session and thanked members of the general assembly for their partnership in the work to deliver results for Marylanders.

“This legislative session, Maryland was called upon to be nimble in the face of uncertainty and courageous in the face of chaos,” said Gov. Moore. “This wasn’t just about balancing a budget. It was about weathering two storms: A fiscal crisis and a new White House that attacks our economy. In partnership, Maryland did what we always do when the chips are down: we stood shoulder-to-shoulder and delivered for our people. And that is what we will continue to do.”

​The governor also signed legislation to establish the Department of Social and Economic Mobility; address Maryland energy generation and affordability; strengthen public-sector employee safety standards; expand the Prescription Drug Affordability Board’s authority; require public libraries to have an Automated External Defibrillator available for use during medical emergencies; and expedite hearings for active-duty service members seeking to reclaim housing from tenants who unlawfully stay past their lease term. 

Included among the bills Governor Moore signed today are:

Budget Bill for Fiscal Year 2026, turns a $3 billion deficit into a surplus, while still preserving 8% in the Rainy Day Fund—which is above recommended levels—while delivering on the three priorities the governor set at the beginning of the legislative session: modernize the tax code, grow the economy, and invest in Marylanders. The budget also makes more than $2 billion in cuts, which is the largest Maryland budget cut in 16 years; establishes an income tax reform plan where 94% of Marylanders either get a tax cut or see no changes to their income taxes; and directs new resources to lighthouse industries that will create good-paying jobs.

Governor Moore Signs Budget Bill for Fiscal Year 2026 

Procurement Reform Act of 2025, which will modernize the state’s procurement processes to enhance efficiency, accountability, competition, and small business access to state contracts. The bill expands opportunities for small businesses by expanding of the Small Business Reserve Program; enhances government efficiencies by streamlining the procurement process, making the system more nimble for both contractors and government; and rewards contractors who practice good labor standards to ensure that state procurements align with Maryland values.

Governor Moore Signs Procurement Reform Act of 2025 

Department of Social and Economic Mobility - Established, which establishes the Department of Social and Economic Mobility by consolidating various state programs into the new principal department, including the Office of Social Equity, the Governor’s Office of Small, Minority, Women Business Affairs, and the Office of Minority Business Enterprise within the Department of Transportation. The department will be tasked with becoming a single point of entry for Marylanders seeking Maryland’s economic mobility programs.

Next Generation Energy Act, which will modernize the state’s energy infrastructure, promote more in-state generation, and address the rising utility costs burdening Maryland families. The omnibus bill expands financial support to reduce direct greenhouse gas emissions from certain multifamily residential buildings; establishes a procurement framework to advance nuclear energy to generate more clean energy in the state; and delivers meaningful relief to Maryland ratepayers, including a $200 million electricity bill credit directly to Maryland families.

Davis Martinez Public Employee Safety and Health Act, which expands the purpose of Maryland’s Occupational Safety and Health program to include standards that address workplace violence and making public bodies’ workplaces safer. The bill requires the Maryland Occupational Safety and Health Advisory Board to give specific consideration to the workplace conditions and safety and health concerns of employees and recommend higher standards, if warranted. The bill also requires the Maryland Police Training and Standards Commission to adopt regulations for the training, issuance, and use of body worn cameras by correctional officers that address certain issues and procedures.

Prescription Drug Affordability Board - Authority and Stakeholder Council Membership, which makes changes to expand the Prescription Drug Affordability Board to establish a process for setting upper payment limits for all purchases and payor reimbursements of prescription drug products in the State that the board determines have led or will lead to affordability challenges. The bill also authorizes the board to reconsider an upper payment limit for drugs facing supply shortages and to consider the impact of upper payment limits on providers of 340b drugs and drugs that treat rare diseases.

Public Libraries - Automated External Defibrillator Program, which requires each county and the Enoch Pratt library to place an automated external defibrillator in a prominent area that is accessible to employees and library users for use during medical emergencies.

To view the complete list of bills signed into law today, visit: governor.maryland.gov/news/Pages/bill-signings.aspx.

###