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Friday Five

July 11, 2025 | This week's latest on Maryland business and government

1 — America’s top states for business in 2025

North Carolina took first place in this year's in CNBC's annual Top States for Business. To rank America’s top-performing states, CNBC scores all 50 on 135 metrics across 10 broad categories of economic competitiveness. The fundamentals of the study, now in its 19th year, are the same as they have always been — identifying the factors companies consider year after year when making site selection decisions, and that states pitch in their efforts to woo business. Maryland slipped to 32nd from 31st last year.

More on Maryland: Our state's current competitiveness story is one of contrasts — with some notable progress in key areas, but persistent weaknesses that continue to drag us down. Maryland improved in the workforce, infrastructure, economy and education categories, but the core business fundamentals continue to lag other states, especially our neighbors. In business friendliness the state ranks 37th; 46th for cost of doing business; 43rd for cost of living.

2 — Tech firms greet new sales tax warily, long-term impacts

Maryland recently implemented a new 3 percent sales and use tax on data and IT services — covering things like cloud storage, software publishing, data processing, internet publishing, and technical support — aimed at helping close a projected $3 billion budget deficit, with estimated revenue of about $480 million in its first year and roughly $750 million by 2030. While Governor Wes Moore defends the measure as essential for fiscal stability and job growth — claiming a turnaround from deficit to surplus and over 100,000 private-sector jobs added since 2023 — local business leaders, especially small tech and defense subcontractors, warn that the tax could drive firms out of state, raise consumer prices, complicate compliance (due to its reliance on NAICS definitions), and impair Maryland’s competitiveness compared to neighbors like Virginia.

Quoted: “If you’re a small company that provides these services to larger companies and those services would now have to be taxed, you may ultimately see less of a market for the services you provide,” said Maryland Chamber Vice President of Government Affairs Grason Wiggins. Those larger customers “might choose to bring services in house to avoid the 3 percent tax,” he said.

3 — Spending bill stalls in U.S. Senate amid fight over Maryland as FBI HQ destination

A key fiscal 2026 Commerce‑Justice‑Science spending bill in the U.S. Senate has hit a roadblock following a partisan fight over the location of the new FBI headquarters. President Trump recently announced plans to shift the FBI’s HQ to the Ronald Reagan Building in downtown Washington instead of the previously approved suburban Greenbelt, Md. site. In response, Senator Chris Van Hollen introduced an amendment, adopted 15–14 with GOP Senator Lisa Murkowski’s support, to restrict funds only for the Greenbelt plan — a move that prompted several Republicans to withdraw support and ultimately stalled the full bill, with Chair Susan Collins calling for a recess ahead of next week’s session.

Our take: While the Maryland Chamber applauds the selection of Greenbelt as the new FBI headquarters location, we also recognize that relying too heavily on federal resources is not a sustainable policy—particularly when those resources are subject to frequent political shifts.

4 — The return of the skilled trade: Why young professionals are choosing hands-on careers

Many young professionals are increasingly drawn to skilled trades — like plumbing, electrical work, HVAC, carpentry and welding — due to the promise of solid pay, low debt, job security and hands‑on craftsmanship. Apprenticeships and vocational programs are gaining traction as compelling alternatives to traditional college, offering clear career pathways, real-world experience and opportunities to work with advanced technologies in fields like green energy and infrastructure. This trend is fueled by rising vocational enrollments, supportive employer partnerships and changing mindsets among Gen Z, who value tangible work, independence and work–life balance — viewing skilled trades not as fallback options, but as viable and rewarding career choices in today’s evolving economy.

Food for thought: Careers in the skilled trades are essential to Maryland’s diverse economy and long-term competitiveness, and they should be presented as an equal alternative to college pathways in secondary education curricula.

5 — Maryland economy could lose $1 billion if international students don’t return

Maryland stands to lose as much as $1 billion if international student enrollment drops off, according to The Baltimore Banner, which reports that the state welcomed over 10,000 such students — many at Johns Hopkins University — contributing significantly to local economies through tuition, housing, dining and other spending. Their presence sustains jobs, supports educational institutions financially and adds cultural and intellectual diversity, all of which would suffer if enrollment numbers decline.

From Washington: The Trump administration has specifically targeted Chinese international students. Secretary of State Marco Rubio has stated that the U.S. State Department will “aggressively revoke visas” for Chinese students, including those from Hong Kong, while also implementing increased restrictions and a lengthier application process.

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