Friday Five
Oct. 10, 2025 | This week's latest on Maryland business and government
1 — As shutdown drags on, Moore faces pressure to curb Maryland’s reliance on Washington dollars
As the federal government shutdown drags on, Maryland’s intense reliance on Washington has come under scrutiny. Governor Moore has pledged that the state will try to keep federally funded programs — like Medicaid, SNAP and veterans services — running as long as possible using contingency plans, while also protecting furloughed workers from evictions or utility shutoffs. But officials warn the state cannot sustain those efforts indefinitely, especially since roughly one-third of Maryland’s budget depends on federal funds and tens of thousands of state jobs are tied to federal contracts. Lawmakers from both parties are now wrestling with how to reduce that dependency and make Maryland more resilient in the face of federal instability.
Impact on Maryland: A federal government shutdown has a greater impact on Maryland's economy than most other states. Maryland is home to more than 60 federal facilities, 260,000 federal workers and over 200,000 federal contractors.
2 — What a prolonged government shutdown could mean for Maryland, according to the White House
The White House warns that a prolonged federal government shutdown could severely strain Maryland’s economy and social safety net. Each week of shutdown is estimated to shave about $282 million off the state’s gross output. Roughly 5.9 percent of Maryland’s workforce are federal employees, many of whom may be furloughed or working without pay. Programs such as SNAP could face interruption after about 30 days — impacting 668,000 residents, including over 250,000 children. Meanwhile, the WIC program may halt immediately, senior citizens receiving mailed Social Security checks could experience delays and small businesses awaiting SBA loans or federal contract payments could see funding frozen — potentially putting up to $41 million in delayed funds and $1 billion in contracts at risk.
State-by-state impact: The White House recently provided a state-by-state breakdown on the impact an extend government shutdown could have.
3 — Ways a government shutdown could affect your business
A federal government shutdown could hit individuals and businesses hard in five key ways, the U.S. Chamber warns: small businesses may lose access to SBA loans and financing, stalling growth; infrastructure and permitting work could slow or stop due to backlog in approvals; businesses reliant on federal contracts or federal workers may see revenue losses and delayed payments; travel and tourism could suffer via delays in passport and visa processing, thinning TSA staffing and closures of national parks; and local economies could feel ripple effects as reduced federal spending dampens consumer and business activity.
Ripple effect: Not paying federal workers on time could cost the economy billions of dollars and leave American families in the lurch. The situation is especially serious for federal government contractors who do not get backpay once a shutdown ends.
4 — Maryland launches $1M grant to create cyber, AI clinics, fortify digital infrastructure
Maryland’s Department of Labor and its Cyber Maryland initiative have launched a new $1 million grant program to establish Cyber and AI Clinics statewide. The aim is two-fold: to help fill the state’s acute cybersecurity talent gap, and to strengthen the digital defenses of resource-constrained institutions like schools, hospitals and small businesses. Eligible entities such as colleges, nonprofits and training providers can compete for up to $500,000 each. Grantees must train at least 100 cybersecurity professionals annually between 2027 and 2029, embedding AI into both training and service delivery to ensure these clinics deliver real-world protective services.
Quoted: “This initiative puts AI into practice by preparing Marylanders for the jobs of the future while delivering real protections to the places that need them most urgently,” said Seeyew Mo of Cyber Maryland.
5 — City lawmakers, manufacturers talk growing workforce, competing with China
Baltimore manufacturers are increasingly concerned about competition from China — particularly lower labor and production costs there — which is squeezing profit margins locally. To stay competitive, these companies say they need a more skilled workforce, better access to advanced training and supportive trade policies. Labor shortages, rising wages and regulatory burdens on U.S. manufacturers are also cited as challenges. Some suggest that automation, reshoring parts of the supply chain and partnerships with educational institutions could help Maryland firms adapt and maintain manufacturing jobs in the face of global pressure.
Voices for Manufacturing: A statewide initiative of the Regional Manufacturing Institute of Maryland and the Maryland Chamber, Voices for Manufacturing is dedicated to growing our manufacturing base and strengthening our economy.
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.
