Friday Five
Jan. 9, 2026 | This week's latest on Maryland business and government
1 — Maryland’s legislative session will shape its next decade
Maryland will enter the 2026 legislative session next week facing mounting economic pressure, with high taxes, rising costs and policy uncertainty driving residents, income and business growth to other states. Recent data shows significant population loss, a sharp slowdown in net new businesses, and low survival rates for startups, limiting job creation and opportunity. Business leaders argue that competitiveness depends on tax reform, regulatory predictability, affordable energy and housing policies, and fiscal discipline that does not treat employers as a revenue source. Lawmakers’ decisions during this 90-day session are framed as pivotal to reversing current trends and restoring long-term growth, investment and confidence in Maryland’s economy.
Data review: In 2024, Maryland opened 19,289 businesses but watched 17,008 close — a net of just 2,281 new businesses and a 43 percent drop from the year before. Even more troubling: only 12 percent of new businesses survived long enough to create jobs.
2 — Speaker Peña-Melnyk makes changes to House leadership
Newly-elected House Speaker Joseline Peña-Melnyk has moved quickly to assert her leadership by reshaping House committee structures and appointing new chairs and vice chairs across key panels. The most significant change is the creation of a new Labor, Elections and Government Committee, along with leadership shifts in Judiciary, Economic Matters and Ways and Means. Peña-Melnyk framed the changes as a response to economic, workforce and affordability challenges facing Maryland, emphasizing collaboration and effective governance. She also pledged bipartisan engagement and greater inclusion of rural regions through regular meetings with House Republicans and the formation of a new Rural Caucus.
Quoted: “Consistent with my reputation, I will speak the truth but I will also listen with respect to different points of view,” Speaker Peña-Melnyk said.
3 — Senate President says state's economy must change
Maryland Senate President Bill Ferguson argues the state must pivot toward a private sector-driven economy as federal job cuts and reduced spending erode a long-standing foundation of growth. Heavy reliance on federal employment has left Maryland vulnerable, contributing to job losses and a projected $1.2 billion budget shortfall for fiscal year 2027. Ferguson sees the disruption as a chance to rethink the state’s economic model, pointing to assets like the Port of Baltimore, universities and health care institutions as potential engines of growth. He says the challenge now is fostering competitiveness and expansion without raising taxes, even as economic uncertainty intensifies.
Where we stand: Maryland currently ranks 46th in the U.S. for the cost of doing business, according to CNBC. State lawmakers should think long and hard before making Maryland any less competitive in the coming legislative session.
4 — More data center regulations could be coming to Maryland
Maryland lawmakers are gearing up for new data center regulations as proposals proliferate and concerns grow about their enormous energy demands and strain on the electrical grid, with local jurisdictions currently holding much of the approval power. A legislative study on data center impacts was reinstated over the governor’s veto, and bills are being crafted to require state certification for large facilities and incentives for them to curb peak-time energy use or build battery storage to ease grid stress. Supporters of regulation argue these measures will bring transparency and prevent costs from being passed to ratepayers, while industry groups emphasize the significant jobs and tax revenue data centers can generate if the state remains competitive.
From the grid operator: Under current policies, all electricity ratepayers share the costs of system expansion and maintenance. But there is a growing push to require very large users to fund the power boosts that they require. Leaders at PJM Interconnection, the operator of the nation’s largest electric grid, which includes Maryland, Washington, D.C., and a dozen other states, are currently considering a host of possible policy changes related to data centers.
5 — After being ‘blindsided’ in 2025, advocates look to make climate part of the 2026 conversation
Climate and clean-energy advocates in Maryland are regrouping ahead of the 2026 legislative session after being surprised by energy policy moves in 2025 that accelerated permitting for natural gas plants even as the state pursues ambitious emissions reduction goals. Supporters of stronger climate action plan to push bills that expand solar and battery storage and defend against new fossil-fuel infrastructure, especially as federal support for renewables wanes. Some lawmakers acknowledge the need to balance aggressive climate objectives with keeping energy affordable for residents, leaving room for debate over the role of natural gas alongside renewables. With statutory targets to cut emissions deeply by 2030 and reach 100 percent clean energy in the longer term, advocates see the session as a crucial opportunity to realign policy with the state’s commitments.
Senate President: We have options that include renewables and natural gas,” Senate President bill Ferguson said. “I think we have to have a really challenging conversation this session about the balance between the aggressiveness of our climate policies and the affordability for everyday Marylanders — and there’s a balance in between.”
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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.
