Governor Moore Testifies in Support of the 2025 Budget Reconciliation and Financing Act

The Budget Reconciliation and Financing Act of 2025 (SB 321/HB 352) implements several actions to balance the FY 2025 and FY 2026 budgets, provide structural deficit relief, and spur economic growth — while providing record funding for public safety and education. The bill would cut taxes for two-thirds of Marylanders, protect industries at the core of Maryland’s economic strength, and invest in industries where Maryland can lead — including aerospace and defense, life sciences, and emerging technologies like quantum. These budget actions provide approximately $8.8 billion in General Fund savings and increased revenue through FY 2030, including $3.0 billion between FY 2025 ($767 million) and FY 2026 ($2.23 billion).

To confront Maryland’s fiscal crisis and the uncertainty caused by chaos in Washington, Governor Moore emphasized his commitment to working in partnership with the Maryland General Assembly to pass a budget that grows the economy, cuts taxes to provide relief for low and middle income families, and protects the services Maryland families depend on.

Governor Moore’s testimony as prepared:

Thank you – And I want to say to Chair Barnes and Chair Atterbeary: Thank you for your leadership, and thank you for this opportunity to testify.

I also want to thank the members of the Appropriations and Ways and Means Committees for your partnership.

Budgets respond to the needs of the people. So it’s important that we take stock of the moment we’re in.

One week ago, I took a trip to D.C with the National Governor’s Association to talk about where we are… And what I saw in Washington concerned me as a governor – and disturbed me as a Marylander.

After productive conversations with fellow governors on both sides of the aisle…

After respectful discussions with cabinet secretaries, even in places where we disagreed…

We met with the President of the United States and listened to him talk for an hour about conspiracy theories and personal grievances.

He didn’t talk about lowering the price of groceries – or housing affordability – or making prescription drugs less expensive – things governors wanted to talk about.

Now, here in Maryland, we've been preparing since last February for a potential Trump Administration. 

But what I saw up close in Washington was worse than anything we could have anticipated… and affirmed the endless feelings of chaos and uncertainty we’ve endured over the last six weeks.

This month, we lost more than 1,300 jobs in Montgomery and Prince George’s County because of arbitrary federal government cuts.

This week, the Social Security Administration closed two offices in Maryland and terminated 200 employees who work there. 

Not only do I anticipate a continuation of the chaos that we have watched unfold over the last month – I anticipate an acceleration.

On Tuesday, House Republicans passed a bill to cut Medicaid and CHIP by as much as $880 billion and cut SNAP by as much as $230 billion…

Yesterday, the White House announced they intend to cut the entire Social Security Administration in half…

By all indications, we expect the White House to continue cancelling hundreds of contracts and firing countless federal employees –

Here in Maryland, these draconian moves could lead to tens of thousands of jobs lost, hundreds of thousands of lives disrupted, and the cratering of tens of millions of dollars in income.

That is the context of today’s hearing and these ongoing budget negotiations in our state.

Addressing the structural deficit we inherited and balancing the state budget for the third year in a row would be hard during normal times –

And listen: These are not normal times. 

The budget proposal I introduced on January 15th came five days before Donald Trump’s Inauguration.

The world has changed in just six weeks. And our final state budget for the year needs to reflect that harsh reality.

Now is the time to band together and work in partnership to deliver a final budget that responds to the unprecedented crisis we face.

Flexibility, compromise, and collaboration must guide our work through session.

But there are three key principles we cannot retreat from – principles you’ve heard me repeat many times.

First: We need to reform the tax code – and we must give middle-class families a tax cut.

Marylanders are being squeezed by rising prices – from the cost of groceries to the cost of energy. And policies from D.C. are only making things worse.

The cuts we are seeing at the federal level are designed to create space to extend the 2017 Tax Cuts and Jobs Act.

That legislation helped billionaires pay less in taxes than middle class families for the first time in American history. 

Under the Trump Plan, Marylanders who have done very well will do very very well again. 

Marylanders in the middle class will get squeezed – again. 

We need to make sure our people are protected and can get tax relief at a time of economic uncertainty.

Our budget proposal cuts taxes for two-thirds of Marylanders, and ensures 82% of Marylanders either see a tax cut or no change…

And unlike legislation out of Washington, we are targeting relief to working families. 

I ask the members of these committees: Let’s work together to give the middle class a break.

Our reform plan will help regular people keep a little more cash in their pockets when they need it most…

And yes, we are going to ask those of us who have done exceptionally well financially to pay a little more so we can invest in growing our economy.

As someone who would be affected by our budget plan, I am OK paying a little more if it means we don’t have to lay off firefighters or police officers – and can have the best public schools in America.

We will make taxes simpler, fairer, pro-growth, and lower… and we will ALSO increase government efficiency, as good stewards of taxpayer money.

For the third year in a row, we introduced a budget with a General Fund smaller than the year before – 

And in partnership, we are making government more responsive, more effective, and more accountable. 

Second: We must grow and diversify our economy by focusing on industries of the future and making Maryland more business-friendly.

Changes in Washington are hurting Maryland’s economy and disrupting the lives of constituents in each and every one of your districts.

Marylanders who raised their hands to serve are now filing for unemployment – And mass layoffs are happening at a time when we should be revving up our economy, and not slowing down.

We need to change the tide.

Look: The structural deficit we find ourselves in has been predicted since 2017 – and at the center of this problem is a fundamental lack of growth.

This year, let’s focus on growing our economy, so we can stop having this same conversation when thinking about Maryland's future…

And we must do it in a way that ensures we aren’t so reliant on Washington for long-term success.

Our economy shouldn’t be dependent on who sits in the oval office.

We have studied the data and identified three lighthouse industries of the future we need to build out: Life sciences; I.T.; and Aerospace and Defense.

I want Maryland to be the capital of quantum – And A.I. – And clean energy – And biotech… sectors that will define the economy of tomorrow.

We also need to protect the incumbent industries at the heart of our economic strength – from trade to transportation to the outdoor economy.

Our proposal achieves each of these goals, and I want to see them reflected in a final budget.

Third: We need to invest in our people.

Let’s finalize a budget that protects the essential services Marylanders count on AND keeps them employed and employable.

At a time when the White House seems to believe health care is a privilege for those who can afford it, we need to lean into health care as a right in every part of the state.

At a time when we see the White House destroy career pipelines, we need to build new avenues to work, wages, and wealth here in Maryland.

At a time when we must be disciplined, we cannot stop investing in our people – Because investing in our people is our pathway to prosperity.

These are the priorities… First: Reform the tax system. Second: grow the economy. Third: invest in our people.

Those are the principles I hope we can all agree on – and that I won’t compromise on…

And, look: I know I am asking a lot of your committees right now. I recognize that. 

We need to lead with our values, balance the budget, and adjust to new leadership in Washington that is, frankly, totally unpredictable –

And we need to do each of these things at the same time.

This isn’t easy work. But responsible governing is hard. And that’s what Marylanders are demanding right now… They’re calling on us to act. 

I believe we can – and we will. 

Because that’s what Maryland does. We confront crisis with courage.

So let’s confront crisis by giving Marylanders a tax break –

Confront it by growing the economy –

Confront it by investing in our people –

And confront it by balancing the budget and leaving no one behind. 

Thank you, and I look forward to your questions.