Friday Five
Nov. 7, 2025 | This week's latest on Maryland business and government
1 — Moore defends redistricting as effort to ensure fairness; Republicans prepare to go to court
Governor Moore announced a mid-cycle redistricting effort in Maryland, launching a five-member advisory commission led by Angela Alsobrooks to propose new congressional maps aimed at ensuring fairness and representation. Moore framed the move as a defense of democracy amid partisan redistricting battles nationwide, particularly in Republican-led states, asserting that Maryland should not remain idle while others reshape political boundaries. Republican leaders immediately criticized the plan, with Delegate Kathy Szeliga calling it “Kabuki theater” and accusing the governor of political posturing. They are preparing legal challenges, pointing to their successful 2022 lawsuit that overturned Maryland’s congressional map for “extreme partisan gerrymandering.” Some Democrats also voiced caution, including Senate President Bill Ferguson, who warned that the effort carries legal and political risks and could distract from other legislative priorities.
Special session: Moore did not rule out calling a special session to consider the commission’s recommendations, suggesting one could occur by December. Republican lawmakers argue the process is a partisan maneuver designed to eliminate their representation, with Senate Minority Leader Stephen Hershey describing it as “a power grab disguised as reform.”
2 — Power plant owner Constellation exploring billions worth of energy projects for state
Baltimore-based Constellation Energy plans to invest up to $20 billion in new generation and storage projects that could add 5,800 megawatts of capacity in Maryland — enough to power several million homes. The proposal, one of three submitted under a new state law to boost in-state energy production and lower utility bills, outlines potential expansions in nuclear, natural gas and battery storage. Near-term plans include advanced battery systems at the Perryman station in Aberdeen and redeploying six gas-fired units from other regions, which could later run on hydrogen. Longer term, Constellation proposes extending the life of the Calvert Cliffs nuclear plant and possibly adding new reactors there. The company says the effort would not raise electricity rates, noting that most cost increases come from transmission infrastructure, not generation. The Public Service Commission will choose projects within about nine months, as environmental groups urge quick approval of clean energy options before federal incentives expire.
Policy Forum 2025: Hear from Constellation President & CEO Joe Dominguez, elected officials and business leaders at our Policy Forum for Maryland's Future event on Nov. 20 at the University of Maryland.
3 — Maryland schools make slight gains on annual report card, but rating system could be changed
For the 2024‑2025 school year, 43 percent of schools in Maryland earned either a four‑ or five‑star rating — up from 41 percent the prior year — and 98 schools achieved five stars, an increase from 91. Despite this uptick, about 76 percent of schools retained the same star rating as the year before, prompting concerns that the current system fails to sufficiently reward student growth or distinguish among schools. In response, state education leaders are exploring replacing the five‑star system beginning in the 2026‑2027 school year to create a more nuanced accountability model.
Our take: Maryland’s slight gains in school report card ratings are encouraging, but the limited movement under the current system highlights ongoing challenges in measuring student growth and school performance. For businesses considering relocation or expansion, a strong K‑12 education system is a key factor in attracting and retaining talent. Without a more nuanced and growth-focused accountability model, Maryland risks sending mixed signals about workforce readiness.
4 — 2025 Business climate rankings: Texas tops business climate rankings again
Texas remains widely recognized as the top U.S. state for business climate, consistently attracting major investments and relocations. According to rankings by Business Facilities Magazine, it secured the No. 1 spot for the third year in a row in 2025, thanks to its favorable tax environment (including no personal income tax), a large and skilled workforce, infrastructure capable of supporting growth and strong appeal to corporate expansion — more than 1,300 qualified investment projects were reported for 2024. At the same time, in the annual survey by CNBC of 2025, Texas ranked No. 2 overall, with particular strength in workforce quality and innovation metrics but scored lower in quality‑of‑life categories. In short, Texas’s consistent top‑tier ranking signals to businesses that it remains a highly competitive environment for growth, though states also must continue improving ancillary factors such as livability and long‑term infrastructure to maintain that edge.
In other rankings: The Tax Foundation’s 2026 State Tax Competitiveness Index highlights the impact of Maryland’s aggressive 2025 tax package. The state added two new brackets on high earners, raising the top marginal individual income tax rate to 6.5 percent, increased the county income tax cap to 3.3 percent and introduced a 2 percent surtax on capital gains for high earners. Additionally, Maryland imposed a new 3 percent sales tax on data, IT, and other business-to-business services. These measures pushed Maryland down one spot overall to 46th and dropping five places on the sales tax measure (from 35th to 40th), underscoring the state’s growing tax burden relative to other states.
5 — Government shutdown becomes longest ever as Trump pressures GOP senators to end it
The government shutdown has entered its 37th day, having become the longest in U.S. history. Democrats have failed to vote on a clean continuing resolution (CR) put forth by Republicans — the same CR which passed Congress earlier this year. President Trump has pushed for ending the Senate filibuster to advance Republican priorities, but Senate leaders have resisted, leaving negotiations largely in the hands of centrist senators from both parties. Democrats, emboldened by recent blue state and city election wins, continue to push for funding health care subsidies, while moderate members show more willingness to compromise. Key congressional leaders are working on smaller, bipartisan funding packages to restore basic government operations, including agriculture and military construction programs.
Impact on Maryland: For Maryland’s economy, the shutdown slows federal contracting, delays regulatory approvals and risks workforce instability, particularly in sectors like defense, aerospace and federal services where the state has a large employment footprint.
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