ANNAPOLIS, Md. — Gov. Wes Moore’s administration released its proposed FY 2027 budget in a press release on Jan. 21.
The proposed operating budget makes nearly $900 million in :targeted cuts and other cost-saving measures,” focused on “making critical programs more sustainable.” The approach prioritizes funding for programs that align with measurable outcomes.
The administration highlighted that the proposed budget contains no new taxes or fees, eliminates the projected $1.5 billion cash shortfall, meets all major Spending Affordability Committee requirements, including maintaining 8% in the Rainy Day Fund, and reduces government operating expenses by $154 million between FY 2026 and FY 2027.
The release also states the administration’s priorities are to sustain key programs under threat by federal budget cuts and to continue growing Maryland’s economy. As for economic development, the budget includes more than $100 million in “targeted and tested” business tax cuts and capital funds:
- $13.5 million in total state funding through capital funds, the Maryland Department of Commerce and MEDCO to support construction of Sphere in National Harbor.
- $15.5 million for stem cell research institutions.
- $14.6 million in capital funding for AstraZeneca facility improvements and expansion in Frederick County and for the construction of a new facility in Montgomery County.
- $16 million for the state’s Sunny Day Fund.
The budget also allocated $10.2 billion in proposed education spending, a $373.8 million increase over FY 2026.
The proposed budget will undergo the legislative process over the next few months and must receive a final vote by April 6, 2026. It will take effect July 1, 2026.
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