Maryland Governor Wes Moore addressed state lawmakers, emphasizing the need for Maryland to reduce its reliance on federal jobs and strengthen other economic sectors amidst budget challenges and federal workforce downsizing efforts by President Trump. Moore highlighted a $3 billion budget deficit and the impact of the new administration’s actions on Maryland’s economy as significant hurdles. He expressed concerns about the federal government’s policies negatively affecting the middle class and disrupting the longstanding relationship between Maryland and Washington.

With Maryland, Virginia, and DC hosting about 20% of the nation’s federal workers, Maryland’s economy heavily relies on federal employment and procurement. Moore identified life sciences, information technology, and aerospace and defense as key industries for future growth. He proposed a budget plan for the upcoming fiscal year that includes higher income tax rates for high earners and spending reductions to address the budget deficit. The plan aims to stimulate economic diversification, boost the middle class, and reduce dependence on federal funding.

However, Maryland Republicans attributed the state’s financial struggles to policies and regulations enacted by the Democratic Supermajority rather than the change in federal leadership. Governor Moore’s budget proposal includes tax adjustments for higher-income individuals and corporations, with the majority of Marylanders expected to see tax cuts or no change. The plan seeks to address the budget shortfall while promoting economic growth and reducing reliance on federal support.