2025 End of Session Letter

Dear Neighbor,

I am proud of the progress we've made together during this 447th Legislative Session of the Maryland General Assembly. We’ve worked hard to address concerns that matter to Marylanders, and while this year has presented its challenges, I believe challenges are a great opportunity to build stronger communities and ensure that our values are upheld. 

Balancing the budget this year with a $3 billion deficit was no small feat, and it required us to make some tough decisions. However, we were able to balance the budget while continuing to make critical investments in education, public safety, and healthcare. At the same time, we took steps to support Marylanders affected by uncertainty at the federal level.

One key piece of legislation, HB1035 Public Utilities - Electricity Generation Planning - Procurement, Permitting, and Co-Location (Next Generation Energy Act) will provide relief to Maryland residents facing rising utility bills. With electricity rates expected to increase this summer, this package includes several provisions designed to ease the financial burden on households.

I am grateful for the support of my colleagues in passing the legislation I sponsored – HB473 and HB991. More details on these initiatives will follow in the report included with this letter.

Throughout this session, I had the privilege of meeting with many advocates, representatives from colleges and universities, and many of you—my constituents. I value those conversations and am grateful for the opportunity to support you through resolutions and legislative bond initiatives. 

Now that the session has concluded, I look forward to meeting with many of you back in the district. Our annual Community Day will be held on Saturday, June 7, 2025, from 11 AM until 3 PM at Accokeek East Community Park, and I look forward to seeing you there. It will be a great opportunity for us to come together, celebrate our community, and honor our District 27A scholars. Please email my office at kevin.harris@house.state.md.us to attend or for more information about our scholarship application. 

Thank you for your continued trust and support. It’s an honor to serve you.

Yours in Service,

Maryland Budget Proposal: Key Highlights and Implications

Maryland has found itself in a tight fiscal reality; nevertheless, the best way out is always through. Governor Wes Moore has introduced a budget proposal aimed at eliminating Maryland’s projected $3 billion deficit in the fiscal year 2026. The plan involves significant tax adjustments aimed at generating around $1 billion in tax revenue, combined with approximately $2 billion in spending cuts to ensure that Maryland’s spending returns to levels that remain at par with its balance sheets. Furthermore, the budget aims to maintain investment in many priority programs that are consistent with Maryland's Blueprint Model and its long-term economic growth. Here's what you should know. 

Key Tax Changes

1. Individual Income Tax Adjustments

   • Consolidation of the four lowest tax brackets into a single 4.7% rate.

   • New tax brackets for high earners have been introduced: 6.25% for those earning over $500,000 and 6.5% for those earning over $1 million.

   • Implement a 1% capital gains surtax for individuals with a federal AGI exceeding $350,000.

   • Elimination of itemized deductions in favor of a doubled standard deduction.

2. Local Income Tax Increases

   • Raising the local income tax cap to 3.3%, increasing tax burdens in some counties.

3. Corporate and Business Tax Modifications

   • Reduction of the corporate income tax rate from 8.25% to 7.99%, effective in 2028.

   • Adoption of water’s edge combined reporting, impacting corporate tax filings.

4. Excise and Sales Tax Adjustments

   • Higher excise taxes on sports betting (from 15% to 30%), table games (from 20% to 25%), and cannabis (from 9% to 15% by 2027).

   • A 3% sales tax on data and IT services.

   • A $0.75 delivery tax, following similar models in Colorado and Minnesota.

5. Estate and Inheritance Tax Reforms

   • Repeal of the inheritance tax, making Maryland the only state to eliminate both inheritance and estate taxes.

   • Offset by a lower exemption for the estate tax 

6. Tax Increases to support funding for transportation

   • Increase of the excise tax on vehicle sales from 6% to 6.8%. A change that would raise $158 million. 

   • Increasing vehicle emission fees from $14 to $, raising $20 million,

   • Doubling titling fees on new and used cars to $200, raising $80 million.

Beyond tax changes, the plan makes significant investments in key policy areas:

It allocates $128 million for targeted economic growth initiatives and provides $122 million in public safety funding for local police aid, along with $4.2 million to expand juvenile services and $3 million to reopen the Catoctin Treatment Center.  

Education remains a top priority, with a record $9.7 billion investment in Pre-K 12 education, reflecting a $551 million increase from FY 2025 and continued support for the Blueprint for Maryland’s Future. Additionally, higher education funding includes a 13% increase in community college support to $401 million and a 31% increase in funding for college scholarships, bringing the total to $138 million. It also earmarks $2 billion from the general fund toward various state-operated universities and colleges, including the University of Maryland, College-Park. 

Childcare assistance is also a key focus, with more than $400 million allocated for Child Care Scholarships, supporting nearly 43,000 children - up from just over 16,000 in 2022. Healthcare investments include a record $4.7 billion for Medicaid, marking a 26% increase since FY 2023, along with $16 million for primary care expansion, $8 million for biomarker coverage, and $51 million for Autism Waiver services. Funding for the Developmental Disabilities Administration will also see a significant boost, reaching $1.3 billion in FY 2026, a 67% increase from FY 2023.

Despite increased investment in several priority programs, the Fiscal Year 2026 budget achieves a 1.0% reduction in overall General Fund operating expenses, amounting to $274 million. Additionally, it maintains a Rainy-Day Fund balance of at least 7.5% of General Fund revenues, ensuring resources are available to mitigate the impact of a recession or adverse federal actions that could harm Maryland’s economy. All in all, the budget presents a balanced approach to addressing the state’s financial challenges and ensuring a brighter and more stable future ahead for all Marylanders. 

Improving Our District 

Serving on the Appropriations Committee, I have the privilege of advocating for funding that supports the counties and districts I represent. This year, I’m proud to share that we’ve secured significant funding for capital projects that will directly benefit our community. Here’s a look at some of the key investments we were able to make to strengthen and enhance our district:

Charles County

Several community organizations in Charles County will receive $16,807,000 in funding through House Bill 351, supporting facility improvements, public safety initiatives, and cultural preservation efforts: 

• Boys and Girls Club of Southern Maryland, Inc. – $610,000

• Charles County Food Rescue Program - $75,000

• Poiema Movement, Inc. – $650,000

• Providence of Maryland – $122,000 

• United States Bomb Technician Association – Maryland Technology Center – $200,000

• W.A.C. Hughes Lodge No. 1053 – $75,000 

• Waldorf Elks Lodge No. 2421 – $75,000 

Prince George’s County

Education

This session, we've secured substantial funding to enhance education infrastructure and resources, ensuring that Prince George's County schools are well-equipped to accommodate rising enrollment numbers and continue providing high-quality education. A total of $185,095,504 was allocated to both secondary and higher education institutions. Of this amount, $836,000 went to secondary schools, while $184,259,504 was designated for higher education, supporting acquisition, planning, design, building, repairs, and site improvements. This funding also includes provisions for Governor Wes Moore's IonQ Headquarters Project at the University of Maryland, College Park, an initiative aimed at establishing Maryland as a hub for the quantum computing industry.

Healthcare

We've also secured $48,000,000 in funding for the maintenance, repair, renovation, construction, and expansion of healthcare facilities. This investment spans institutions such as MedStar Southern Maryland Hospital and includes the acquisition of a new health center in Ritchie Station. These funds will enhance access to high-quality healthcare and ensure that these facilities are well-equipped to meet the medical needs of the community.

Further Capital Facility Improvements

Prince George's County has secured about $278,630,000 in capital facility grants, set to breathe new life into the region’s infrastructure. These funds will go a long way in creating affordable housing for low-income families, ensuring that more residents have access to safe and affordable living spaces. The money will also help build new police centers, making sure that law enforcement has the tools and facilities needed to protect and serve the community.

The ongoing Purple Line project will continue to get a boost, improving connectivity and making travel across the county faster and more accessible. Additional funding will support the maintenance of recreation centers and community organizations, ensuring these spaces remain safe and accessible for residents. This investment will enhance opportunities for social engagement and well-being across the county.

Protecting Marylanders

Although we've been in session, we’ve been closely monitoring federal actions and their potential impact on Maryland. In response, my colleagues and I have introduced a series of bills aimed at protecting our communities, economy, and future. These measures reflect our commitment to ensuring that Maryland remains strong and resilient, no matter the challenges at the federal level. Below are key bills we’ve championed to safeguard the interests of all Marylanders:

HB1424 – Catastrophic Event Account and Federal Government Shutdown Employee Assistance Loan Fund - Alterations (Protect Our Federal Workers Act), provides financial and legal tools to support Maryland’s 142,876 federal employees who are affected by cuts to the federal workforce.  This bill expands existing funds and accounts to provide interest-free loans to federal workers impacted by

unforeseen employment disruptions. The bill also provides an additional $1.5 million to the Attorney General to sue the Trump Administration for their wrongful and illegal firing of federal workers.

HB504 – Excellence in Maryland Public Schools Act, retains essential funding for community schools, for students from low-income families, for multilingual learner services, and for teacher collaborative time. Additionally, with targeted investments in teacher recruitment, retention, and professional development, along with strategic enhancements to community school programs, the bill as amended will continue our progress to build a resilient and inclusive education system.

As the Blueprint enters its third year of full implementation, we have expanded access to pre-K, given teachers a raise, and improved student achievement. Cuts to education funding will stunt this extraordinary growth and force us to pick winners and losers when it comes to the education of our students. Maryland House Democrats keep the promises we made through the Blueprint to meet our diverse educational needs and create safer and stronger environments where every student and teacher can succeed.

The destruction of the federal Department of Education requires more strength and support for our State’s education system. At a time when the Trump Administration is attempting to dismantle the Department of Education and target our most vulnerable students, the Maryland House Democrats are fighting back to protect teachers, students, and families in the State of Maryland by fully funding the Blueprint this year.

HB718 – MD Health Insurance Coverage Commission, this legislation creates a commission to monitor and assess the impact of potential and actual federal changes to programs such as Patient Protection and Affordable Care Act, the Mental Health Parity and Addiction Equity Act Medicaid, MD Children’s Health Program, Medicare, and the MD All-Payer Model. The Commission will provide recommendations annually to ensure that access to affordable healthcare is protected.

HB974 – Preventative Services Enforcement, preserves Biden-era insurance carrier coverage requiring preventive services with zero cost sharing. Types of preventative services protected include immunizations, annual wellness checks, cancer screenings, birth control, physicals, vaccines, and more. By keeping Marylanders healthy, overall cost of care drops. Studies show that for every dollar we spend on preventative care we save $6 in healthcare costs.

HB1045 – Health Insurance and Family Planning Consumer Protections, updates 2017 legislation which made Maryland the first state in the nation to guarantee continued funding for family planning and women’s health services if the Federal Government defunded clinics. The bill gives both the Insurance Commissioner and the Maryland Commission on Civil Rights the authority to address discrimination in health insurance. This bill makes necessary changes to update the law and ensure it accurately reflects policies provided as of December 31, 2024.

HB1082 – State Based Insurance Subsidy Program, will establish a state–based health insurance subsidies program to mitigate the effects of the possible elimination of federal advance premium tax credits. Eliminating the subsidies program would increase monthly premiums by $3K per family and put 190 thousand Maryland residents at risk of losing some or all of their financial support for their health insurance.

The state will kick in subsidy funding provided by the state reinsurance program to fund the gap until the legislature is able to find long term funding solutions. However, if Congress extends the advanced premium tax credits, the state program will end, and the reinsurance funds will be untouched. These tax credits are critical for hard working families to afford health insurance for themselves and their families and helps reduce the number of uninsured.

HB424 – Prescription Drug Affordability Board - Authority for Upper Payment Limits (Lowering Prescription Drug Costs for All Marylanders Now Act), makes healthcare more affordable for everyday families by expanding the authority of the Prescription Drug Affordability Board (PDAB).

Under this bill, the board’s authority to use cost savings measures, such as setting upper payment limits, is expanded to include the commercial market. By including all purchases in the state, Maryland is in a better position to negotiate with pharmaceutical companies.

By allowing carriers in the commercial market, as well as state and local governments, to purchase prescription drugs more efficiently, Marylanders will see savings on their healthcare premiums. By reducing the amount that Maryland spends on big pharma, insurance premiums decrease, and taxpayers get the benefit.

My Legislation 

I’m pleased to share that two of my bills—focused on minority business development and college scholarships—have passed.

House Bill 473, Maryland Community College Promise Scholarship Program - Revisions, revises the Maryland Community College Promise Scholarship to give part-time students enrolled in an associate degree program the chance to receive the scholarship for up to six years. This is an important adjustment, as many part-time students balance their education with work or family responsibilities, which can extend the time needed to complete their degree. Similarly, the bill guarantees that students working towards professional licensure, certification, or participating in registered apprenticeship programs can receive the award for up to three years. I’m grateful to my colleagues for demonstrating their commitment to ensuring all Maryland students, regardless of their circumstances, have the opportunity to achieve their educational and professional goals by passing this important legislation. 

House Bill 991 State Procurement - Minority Business Enterprise Program - Extension and Reports, ensures the extension and ongoing operation of Maryland’s Minority Business Enterprise (MBE) Program, specifically for the Offshore Wind Project and Video Lottery Terminals, promoting continued opportunities for minority-owned businesses in these industries has gone to committee. I appreciate the support this bill received and look forward to seeing its positive impact on Maryland’s economy and minority business community.