Friday Five
April 24, 2026 | This week's latest on Maryland business and government
1 — Maryland taxes rise most in 2026 under new policies
Federal tax changes taking effect in 2026 are expected to increase overall tax burdens for many Maryland residents, even as higher-income households and corporations receive significant tax cuts. The shift stems from provisions that extend earlier tax cuts while limiting certain deductions and offsetting costs through spending reductions, contributing to a growing state deficit. Maryland’s tax climate ranks among the higher burden states, and federal changes add another layer. Property tax assessments in the state are also rising, compounding pressures for some households independent of federal income tax adjustments.
Ongoing debate: Proponents argue the cuts foster investment and growth that eventually benefits all. Critics contend the structure favors capital owners without sufficient trickle-down to wage earners.
2 — Battles over data centers intensify in the State House, communities
Debates over data centers are intensifying across Maryland as lawmakers, industry groups and local communities clash over how — and whether — to expand the fast-growing sector. While supporters highlight potential benefits like job creation, tax revenue and innovation, critics raise concerns about energy demand, strain on the power grid, environmental impacts and limited community input. The General Assembly considered numerous bills this session to regulate the industry, with a focus on ensuring data centers help cover infrastructure costs and don’t drive up utility rates for residents.
In support: Kelly Schulz, CEO of the Maryland Tech Council, said some benefits of data centers include job creation, local tax revenue, the likelihood of innovation and the importance “to move forward in a technology-centered society.”
3 — Maryland families say the cost of raising kids here is pushing them out
Maryland is now the second most expensive state in the country to raise a child, according to an analysis of state costs published this month by LendingTree. Families are facing rapidly rising costs for essentials like housing, childcare, groceries and energy, forcing many to make significant financial trade-offs. These pressures are contributing to concerns about long-term affordability, with some families reconsidering staying in the state and policymakers facing calls to expand tax relief and reduce regulatory costs to ease the burden.
True story: Jennifer Brown, a single mother of two living in Harford County, said Maryland leaders do not appear to be acting in the interest of families, citing new taxes and fees passed last year. “Basic necessities such as food and clothing have become increasingly expensive over the last few years,” she said. “Energy costs have continued to increase rapidly. Gas has remained high in Maryland. The 46-cent-a-gallon gas tax, the seventh highest nationwide, keeps gas prices high.”
4 — Gridlock nation: Exclusive look at federal push to fix the DMV’s worst traffic chokepoints
Severe traffic congestion across the D.C.-Maryland-Virginia region is drawing federal attention, with officials urging states to identify and address major bottlenecks like the American Legion Bridge and Baltimore’s I-695 corridor. A proposed “Freedom to Drive” initiative would encourage solutions such as public-private partnerships to fund infrastructure upgrades, though questions remain around tolling, oversight and costs. As pressure mounts, state leaders must decide whether to pursue these approaches to ease congestion and improve mobility.
Where we stand: Reliable transportation infrastructure is essential to Maryland’s economic competitiveness, and addressing congestion in critical corridors must be a top priority. The Maryland Chamber supports innovative, fiscally responsible solutions that accelerate improvements, reduce delays and keep goods, workers and commerce moving efficiently.
5 — Maryland loses 5.5K jobs in February as Moore seeks to grow state economy
Maryland recorded an estimated loss of about 5,500 nonfarm jobs in February, driven largely by declines in construction, transportation, warehousing and hospitality sectors, according to state labor data. While private-sector employment continued modest growth and the unemployment rate remained near the national average, federal job reductions and broader economic uncertainty continue to weigh on the state’s overall labor market as Governor Moore pursues long-term job creation goals.
The numbers: The hardest-hit sectors during February’s employment dip include construction, which lost 4,100 jobs, followed by transportation, warehousing and utilities at 2,000 cuts.
Advancing inclusive partnerships for a Maryland where all businesses and their communities thrive
The Maryland Chamber of Commerce is the state’s leading business advocacy organization — committed to working with our alliance of partners on critical public policy issues. With a focus on economic development and grassroots advocacy, we impact policies that directly affect Maryland business.
