Friday Five
Nov. 21, 2025 | This week's latest on Maryland business and government
1 — Maryland has ‘no choice’ but to find cuts before tax or fee increases, top Dem says
Maryland House Majority Leader David Moon emphasized at yesterday's Policy Forum for Maryland's Future, hosted by the Maryland Chamber of Commerce at the University of Maryland, that closing the state’s projected $1.4 billion deficit will require additional spending cuts before lawmakers consider raising taxes again, noting that last year’s revenue increases already exceeded $1 billion. He cautioned that Maryland’s heavy reliance on the federal workforce means the state has yet to feel the full impact of President Trump’s federal job cuts, which could worsen the budget outlook by fiscal 2028. Despite the $2 billion in reductions already included in the fiscal 2026 budget, Moon warned that more restraint will be necessary as federal layoffs accelerate, pointing to early signs such as declines in D.C.-area fine dining as indicators of broader economic strain.
Other legislative outlooks: Del. Vanessa Atterbeary, chair of the House Ways and Means Committee, echoed the focus on economic development and said her committee will revisit growth-oriented legislation set aside during last year’s budget-heavy session, while signaling little appetite for new taxes in an election year. House Minority Whip Jesse Pippy argued that the state’s costly Blueprint for Maryland’s Future education plan is the primary driver of the deficit, calling for scaling it back and contrasting Maryland’s struggles with Virginia’s more diversified and resilient economy.
2 — Data center regulations rejected as Marylanders’ electricity costs rise
PJM Interconnection stakeholders rejected all 12 proposals for managing the rapid expansion of data centers, leaving the Maryland region without a clear plan as electricity demand and customer bills continue to climb. Leaders of PJM, the nation’s largest grid operator, called the outcome part of a longer process and said the board will now review elements from each proposal to craft its own recommendations, potentially shifting expected timelines for federal filings. Environmental groups and consumer advocates warned that unchecked data center growth is straining the grid and pushing costs onto households, urging the board to prioritize ratepayer protections. Rising electric bills across PJM states have intensified pressure from governors, legislators and watchdog organizations, who argue that outdated processes and utility influence have hindered reform.
What's next: With an estimated 32 gigawatts of new demand expected by 2030, PJM is expected to outline its next steps within weeks, marking a pivotal moment for reliability, affordability and responsible energy planning.
3 — Cost projection for new Key Bridge doubles, with expected opening far later than first hoped
The projected cost for rebuilding the Key Bridge has been revised upward to between $4.3 billion and $5.2 billion — more than double the original estimate of around $2 billion — and the expected opening has been pushed from 2028 to late 2030. The revised numbers reflect sharp increases in material costs, detailed design work and the addition of an enhanced pier-protection system to prevent another maritime impact like the March 2024 collapse that killed six workers. The Maryland Transportation Authority noted that the preliminary figure was used only to secure emergency federal relief, and deeper design and pre-construction efforts have since revealed higher expenses.
Unwavering commitment: State officials have emphasized their commitment to rebuilding efficiently and working with the federal government, while pursuing litigation against the container-ship owner to avoid passing costs onto taxpayers.
4 — With battle lines drawn on redistricting, Ferguson and Moore work to shift line in their favor
Governor Moore is pushing to redraw Maryland’s eight congressional districts ahead of the 2026 elections, a move that could shore up his party’s power but faces resistance in the Senate. While the House of Delegates appears supportive, Moore still needs 24 votes in the 47-member Senate — and Senate President Bill Ferguson has already rallied a majority of his caucus against the plan, citing legal risks and the danger of backfiring politically. Some Democrats quietly back Moore’s proposal, particularly those who want to eliminate Maryland’s lone Republican-held seat, but others warn that the time and energy spent on redistricting would be better devoted to policy issues like jobs, health care and climate change. Ferguson’s opposition also touches on deeper concerns around gerrymandering, arguing that drawing maps for partisan gain could undercut the party’s long-standing opposition to race-based districting.
Happening now: Moore has set up a redistricting advisory commission and is weighing a special legislative session to advance his agenda. “I think if you eliminate the only remaining Republican congressional district, you’re going to find yourself in court with, again, extreme partisan gerrymandering, and I think, quite frankly, the state will lose,” said Karl Aro, former executive director of the Maryland Department of Legislative Services.
5 — Governor Moore tells business leaders to ‘take big bets’
Governor Moore urged business leaders at a Greater Washington Board of Trade event to take bold risks in 2026, calling for a shift away from the state’s traditional reliance on education, the federal government and health care. He argued that Maryland must speed up its economic diversification by making it easier for companies to locate, grow and stay in the state. Rejecting cautious, long-term analyses, Moore encouraged a culture of “yes and now” rather than “no and slow” as the foundation for growth. He also highlighted the value of regional cooperation — particularly with Washington, D.C. and Virginia — to attract business to the DMV area, while still positioning Maryland as a competitive leader committed to next‑generation industries.
Make small business a priority: The federal government shutdown led to a decline in small business optimism in Maryland, along with concerns about potential tax hikes due to a state deficit. With the state facing a projected $1.4 billion shortfall, small business owners are understandably worried that future tax increases could squeeze them even as their confidence erodes. Annapolis must make small business a priority, and soon.
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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.
