January 17, 2025

Ready Report: Governor Moore Proposes FY26 Budget & More…

The first full week of the 2025 Legislative Session has concluded. Below is an update on what happened throughout the week in Annapolis.

Click the picture below to watch my weekly video update for Week 2.

Governor Moore Proposes FY2026 State Budget

The only constitutional duty of the Maryland General Assembly is to pass a balanced budget each year, proposed by the Governor and amended by the Legislature. Earlier this week, Governor Moore released his proposed FY26 state government budget.

Maryland now has a $3 Billion budget deficit, which has been caused by radical spending policies enacted by Democrats. One main culprit is the Kirwan Education Blueprint, which will cost the state over $3 Billion on public education through the next few years, which is already one of the most funded school systems in the country.

Governor Moore’s budget cuts the deficit by $2 Billion, but that is not enough. Governor Moore’s FY26 $67.3 billion FY26 budget proposal represents a 1% spending increase over last year and includes $987 million in new taxes. In its current form, I cannot support the Governor’s Budget as it includes multiple tax and fee increases.

Here is a list of tax and fee increases included in the FY26 budget as proposed by the Governor:

  • Raises income taxes for so-called “high earners” over $500,000 – would take combined tax burden to nearly 10%. Increases the standard income tax deduction (which is what Moore is advertising as a tax cut) BUT eliminates itemized income tax deductions.
  • Creates an “Amazon Tax” – an online retail delivery fee of 75 cents on all deliveries subject to the sales tax.
  • Reduces Corporate Income Tax rates from 8.25% to 7.99% but implements “combined reporting” which would increase the tax liability of many of these same corporations.
  • Cannabis Tax is increased from 9% to 15%
  • Establishes a four-year surcharge on capital gains income over $350,000
  • Eliminates the inheritance tax BUT lowers the estate (death) tax exemption from $5 million to $2 million for non-agricultural properties. This would give Maryland the worst death tax in the country. The federal government allows you to exempt up to $13 million.
  • More than doubles the emissions fee from $14 to $30 and the emissions late fee from $15 to $30
  • Establishes an additional Administrative Fee if you pay your vehicle registration costs through yearly installments (instead of two years at once). This is AFTER the state has doubled the car registration tax just this past year AND…
  • …It expedites the implementation of last year’s doubling in vehicle registration fees.
  • Caps Vehicle Trade-In Allowance to those under $15,000 – amounts to a tax increase on all car lots in Maryland and those costs will get passed down to consumers.
  • Establishes a 0.15% Unemployment Insurance Administrative Fee
  • Increases in Medicaid Hospital Assessment by $139 million – essentially raises a current tax that is collected from hospitals.

The Senate and House Republican Caucuses will be fighting hard to remove any new taxes and fees throughout the Legislative Session. I’ll have more on these issues as we move forward but bottom line is we need to cut spending increases back NOT balance this budget with taxes.

Senatorial Scholarships Available

If you are or know a high school senior or college student, please consider applying for a Senatorial Scholarship.  For more information or to request an application, email Emily Van Horn at [email protected] and include your full address.  Scholarships will be accepted up to April 15, 2025.

As always, if you have any questions or concerns, please feel free to contact me anytime. My office can be reached by emailing [email protected], and my staff and I will do our best to get back to you in a timely manner. Have a great rest of the week!

The Trumpower Foundation Scholarship

Last year, The Harold Glen and Audrey G. Benson Trumpower Foundation Scholarship Fund awarded 76 scholarships to Carroll County students, totaling more than $729,000.

Applications for the 2025-26 school year must be completed online. Scholarships are awarded to Carroll County residents who are pursuing post-secondary education, including undergraduate and graduate degrees, or certifications. Scholarship money can be used to pay tuition, room and board, books, and other fees; and can be used for part-time or full-time study. Please learn more in the attached press release and visit our website to learn more and access the application at TrumpowerScholarships.org.  The application must be completed online by 11:59 p.m. on Feb. 28. Students must complete the FAFSA before applying.

Get more information and apply at TrumpowerScholarships.com. Reach out to our Community Impact team at 301-695-7660 or email [email protected] with questions.

Have a great week ahead and please reach out with any questions.

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