The 2025 General Assembly Session is now over. There were a lot of bills that passed in the last few days but the major discussion for the whole session was how the General Assembly would deal with the $3 billion deficit.
A couple of weeks ago the Governor and the leadership of the State Senate and House of Delegates held a news conference where they announced an agreement on a budget framework.
The budget will have a big impact on most Marylanders. It will include over $1 billion in new revenue and $2 billion in cutbacks. Here are some of the highlights:
Revenue
o 2% Capital Gains Tax on Capital gains Income Above $250,000 (40% to Transportation Tax Fund) - $367 Million Raised
o New income tax on high earning individuals
§ $500,000 - $1 million from 5.75% to 6.25%
§ Over $1 million 6.5%
§ $344 Million Raised
o Gradual phasing out of itemized deductions for those individuals making over $200,000.
o 3% Sales Tax on Data and IT Services ($500 million Raised)
§ This is done in many states including PA and TX
o Cannabis tax rate raised from 9% to15%
o Sports Wagering Tax raised from $15% to 20% ($32 Million Raised)
o 3.5% Tax on short-term car rentals ($47 million)
o Vehicle Excise Tax goes from 6% to 6.8% ($158 million)
o VEIP (vehicle inspection) jumps to $30 ($20 million)
o Vehicle titling fees double to $200 ($80 million)
o Phasing out of itemization of deductions for individuals with over $200,000 in income
Spending Cuts
o The reductions included many across the board cuts in Department fundings
o Reduction in funds for the University of MD System ($111 million)
o Delay in implementation of Family Medical Leave Insurance for 18 months so it would not start until 2028. (This was not specifically a cut but a delay in an increased rates for businesses.)
Some Significant Bills Pass the Legislature while Others Don’t Get Passed:
A bunch of significant bills passed the legislature this year. Unfortunately, a lot of bills did not make it which was disappointing (especially with super Democratic majorities in the General Assembly). This was especially true about legislation that would expand union rights to employees at the University of Maryland. Legislation that would mandate Good Cause Evictions (as opposed to evictions at the whim of the landlord) failed to make it through the Senate. The Environmental community was disappointed that efforts to ban ‘forever chemicals did not get passed. A tax reform proposal, entitled Combined Reporting, did not pass. The bill would have plugged the loophole that allows companies that have subsidiaries in Maryland to avoid the corporate income tax. It’s been introduced every year for the last 15 years and still has failed to pass.
Here are some of the bills that did pass and are expected to be signed into law by the Governor. If you don’t see a bill listed that you liked, please email me.
Civil Rights
o Maryland Reparations Commission Establishes the Maryland Reparations Commission to study and make recommendations relating to appropriate benefits to be made to individuals whose ancestors were enslaved in the State or were impacted by certain inequitable government policies; and requiring the Commission to submit a preliminary report by January 1, 2027, and a final report of its findings and recommendations to the Governor and the General Assembly by November 1, 2027.
Criminal Justice
o HB 853 – Maryland Second Look Act – Incarcerated individuals who have served at least 20 years in prison who were convicted of crimes when they were between 18 and 25 years old could file a motion to reduce their sentence. The court can reduce that person’s sentence if that person isn’t a danger to the public. It was amended to exclude the murder of a public safety officer.
o SB648 – Medical Parole Life Imprisonment – Enables the parole board to make the final decision whether or not to grant medical parole to an individual serving a life sentence without it going to the Governor for a possible veto.
o Drug Paraphernalia – Prohibitions and Penalties This bill reduces penalties for offenses involving drug paraphernalia and controlled paraphernalia. Additionally, the bill repeals the prohibitions on a person possessing controlled paraphernalia or using controlled paraphernalia to administer a controlled dangerous substance (CDS).
o Expungement Reform Act This bill (1) alters various limits waiting periods for the filing of a petition to expunge a conviction (2) expands the list of misdemeanor convictions eligible for expungement; (3) expands the factors a court must consider for an expungement
Education
o HB 504 – Excellence in Maryland Public Schools Act (Blueprint for the Future) – This bill introduced on behalf of the Administration originally delayed some parts of the Blueprint legislation. Specifically it delayed the increase in non-teaching time for education, a freeze on the increase in spending for community schools, and the increase in per child spending. The delay in the increase in non-teaching time stayed in the bill but the freeze in spending for community schools and the increase in per spending per child (for next year) was put back into the legislation.
o HB 325 – Bilingual Option to Take GED - Requiring the Maryland Department of Labor to allow an individual to choose to take all components of the General Educational Development Test in either English or Spanish. Maryland was the only state that did not allow the test to be taken in Spanish.
Elections
o SB 633/HB 906 Stop Scam PACs Act - This bill requires people that solicit for a candidate or a political party and use the candidate’s name, image, or likeness in the solicitation to include a specified disclaimer on the solicitation. The bill also requires people that solicit for what appears to be a charitable purpose to include on each solicitation a statement that contributions or donations to the person are not necessarily used for charitable purposes and are not tax-deductible.
Environment
o Data Center Impact Analysis –requires the Maryland Department of Legislative Services to conduct an impact analysis of the economic, environmental, and social impacts of data centers. Under existing practices, all electricity customers pay for the expansion of the grid! Data centers are straining our grid and increasing costs for everyone.
o Senate Bill 149, THE RENEW Act, requires the State to study the impacts of greenhouse gas emissions by the largest polluters to Maryland’s environment and the cost to taxpayers for resulting resiliency and remediation activities.
Federal Workers
o HB 1424 Protect Our Federal Workers Act This bill will provide stimulus to Maryland residents who are members of the federal government workforce laid off in mass numbers by the Trump Administration. It also provides standing and funds to the Attorney General to sue the federal government for the unlawful firings of Maryland residents.
Health
o HB 424 / SB 357 Prescription Drug Affordability Board - Authority for Upper Payment Limits (Lowering Prescription Drugs for All Marylanders Act) – Mandates the Prescription Drug Affordability Board to determine whether it is in the best interest of the State to set Upper Price Limits for all purchases and payer reimbursements of prescription drug products in the State
o HB 930 – Public Health Abortion Grant Program uses unspent insurance premiums for abortion coverage to support those who are uninsured and underinsured
o HB 553/SB 94 - Blood Pressure Monitors will provide home blood pressure monitors to those in the Maryland Medical Assistance Program.
o HB 1020 -Credit Reporting – Medical Debt will remove medical debt from Marylanders' credit reports. Many Marylanders incur medical debt due to emergencies or because they are underinsured, and studies have shown that this debt is not an accurate predictor of a person's credit worthiness. By passing this bill, Maryland joins 10 other states in prohibiting the inclusion of medical debt in credit reports
Immigration
o SB 828 – Protecting Sensitive Locations Act which would prompt the Attorney General to set guidelines for what Immigration and Customs Enforcement (ICE) officers can and cannot do in entering schools, public libraries, health facilities, and shelters unless they obtain a warrant from a state or federal judge.
o HB 1222 - Maryland Values Act designates public schools, public libraries, state funded or operated health and care facilities, and state governmental buildings as sensitive locations where immigration enforcement and detaining efforts are limited and or restricted. It did not include a prohibition, supported by immigration advocacy groups, that would prohibit state and local agencies from participating in what are known as 287(g) immigration enforcement agreements, which use local law enforcement for routine federal immigration enforcement.
Labor
o Davis Martinez Public Employee Safety and Health Act, named for 33-year-old Parole and Probation Agent Davis Martinez, who was killed on the job last year. The law creates additional oversight over local and state government agencies related to worker safety.
Renters
o Limit on Late Fees for Renters This bill prohibits a landlord (for residential leases) from charging a penalty for the late payment of rent that exceeds 5% of the amount of unpaid rent due for the rental period for which the payment was delinquent.
o Tenants' Right of First Refusal - Tenants have the right of first refusal to purchase a residential rental property if the property owner (1) intends to accept a third-party purchase offer for an amount that is at least 10% lower than the lowest price offered to the tenant during an exclusive negotiation period, or (2) receives a third-party offer without public notice. If a third party delivers an offer to purchase to the owner, the owner must notify the third party of a tenant’s right of first refusal.
o Tenant Possessions Recovery Act – Tenants facing eviction would be entitled to a 10-day grace period to allow them to collect their personal belongings from their previous residence.
o Maryland Tenant Mold Protection Act requiring a landlord to perform a mold assessment and mold remediation within 45 days after receipt of a written notice regarding the detection of mold.
