Fact Checks

On Monday, April 7th, Maryland Democrats passed a responsible, forward-thinking budget agreement that closes the more than $3 billion deficit, grows our economy, and cuts taxes for the middle class – all while shielding Marylanders from the financial pain Donald Trump is inflicting on the state. 

 

Here’s what you need to know about the budget agreement:

 

Donald Trump is taking direct shots at Maryland’s economy that will cost our state billions of dollars. Maryland leaders crafted a budget that best prepares our state for the economic fallout that Trump’s policies will cause.

 

• Tens of thousands of federal workers have already been laid off, while countless federal contractors have less work because of Donald Trump’s reckless spending cuts. Federal worker layoffs alone have already cost the state approximately $280 million – with even more significant harm to come.

 

• Trump is starting reckless trade wars that will cost Maryland’s economy at least $2 billion. All Marylanders, regardless of where they live, will feel the effects of disrupted supply chains and rising prices on goods. Farmers on the eastern shore, dock workers in Baltimore, and small business owners across the state are especially vulnerable to higher prices and disrupted supply chains.

 

• Trump is making drastic cuts to pledged spending that the state relies on. Late last month, the Trump Administration announced it’s clawing back $418 million in federal funds meant to bolster public education in Maryland – even though the money has already been spent. Similarly, the Administration announced it was canceling $200 million in federal funds earmarked to fund public health efforts in Maryland.

 

• Maryland Republicans are spreading misinformation about the budget deal to try to distract people from Trump’s disastrous policies. Shadowy Republican groups are using debunked talking points to direct attention away from Trump.

 

The budget cuts taxes for working and middle class Marylanders by modernizing our tax code.

 

• Under the budget agreement, 94% of Marylanders will either get a tax cut or see no change on their tax bill. The vast majority of new revenue would be paid for by the top 1% of Marylanders, who currently pay the smallest percentage of their income in taxes.

 

• Maryland needs to modernize the tax code. This plan would have us join red and blue states across the country in taxing certain services in thoughtful and measured ways. Maryland currently relies on less than ⅓ of our economy to provide 100% of sales tax revenue – a ratio that no longer makes sense in a services-based economy. 

 

The budget invests in growing our economy and protecting the critical services Marylanders rely on.

 

• The budget agreement grows our economy by investing in the industries of the future – like cyber, quantum, and A.I. – that our state is poised to lead, while protecting key sectors like trade and transportation.

 

• Maryland will become the best place to start, grow, and build a business. The budget cuts red tape, encourages entrepreneurship, and diversifies our economy so we’re less reliant on Washington, DC. It also supports a strong workforce by prioritizing education, public safety, health care, and infrastructure.

 

• The budget agreement reduces government spending more than any budget in 16 years, while safeguarding the critical services that vulnerable Marylanders depend on. Where appropriate, the proposal reduces funding for programs that are underutilized, underperforming, or growing at unsustainable rates.

 

Maryland will turn its long-predicted deficit into a cash surplus.

 

• The budget agreement turns Maryland’s long-predicted $3 billion deficit into a cash surplus. Experts have been warning about Maryland’s structural deficit since 2017. Federal COVID-19 relief funds created a short-term surplus that gave Republican Governor Larry Hogan an excuse to avoid working with the legislature and kick the can down the road. Unlike the former governor, Maryland leaders are taking decisive steps to ensure long-term fiscal health.