Friday Five
Jan. 23, 2026 | This week's latest on Maryland business and government
1 — Moore proposes $70.8B budget, $1.8B in spending reductions
Governor Moore unveiled a $70.8 billion FY2027 budget that closes a $1.4 billion structural deficit without new taxes by relying on roughly $1.8 billion in cuts, fund transfers and cost-saving measures. The proposal includes significant shifts from reserves and capital funds, reduced pay adjustments and provider rate increases, and notable cuts such as $150 million to the Developmental Disabilities Administration, drawing sharp criticism from Republican leaders who argue the plan relies on one-time fixes and accounting maneuvers rather than long-term fiscal reform and change.
Quoted: “I have seen nothing in the Governor’s budget proposal that addresses the long-term issues that have created these giant budget holes,” Del. Jefferson Ghrist of the Upper Eastern Shore said in a statement. “We are just setting Marylanders up for another round of tax increases after the election. It is disappointing.”
2 — Moore, other PJM governors push for changes at the nation’s biggest electric grid
Governor Moore has joined a bipartisan group of 13 governors and Trump administration officials in backing a “Statement of Principles” calling for urgent reforms to PJM, the regional grid operator serving much of the Mid-Atlantic, to address rising electricity costs and reliability challenges amplified by energy-hungry data centers and other large loads. PJM later released its own plan to handle data center demand, and the push surrounding these grid reforms reflects shared concern about cost burdens on ratepayers and how to ensure adequate power generation and fair cost allocation as data center development continues.
From the White House: A spokesperson of the Trump administration said their plan with regional governors is an “unprecedented bi-partisan effort urging PJM to fix the energy subtraction failures of the past, prevent price increases, and reduce the risk of blackouts.”
3 — Moore, legislative leaders look to curtail ‘dynamic pricing’ in Maryland grocery stores
Governor Moore and top Maryland legislative leaders introduced this week the Protection from Predatory Pricing Act to ban “dynamic pricing” in grocery stores, aiming to stop retailers from using surveillance or algorithm-driven data to change prices during the day or charge different customers different amounts for the same item, while requiring prices to stay fixed for at least one business day and empowering the attorney general to enforce the measure if passed. Retailers say this bill solves a problem that doesn’t exist — claiming that prices change according to customer data are "simply inaccurate."
Where we stand: As recently enacted taxes and regulations continue to pressure businesses and consumers, proposals that restrict pricing tools risk unintended consequences and deserve careful scrutiny. Policies shouldn’t reduce flexibility or open the door to broader market disruption via government-imposed pricing rules.
4 — 'Everybody needs to survive': Labor leaders, workers rally in Annapolis for $25 minimum wage
Labor leaders, workers and advocates rallied in Annapolis Tuesday pushing for Maryland’s minimum wage to be raised to $25 an hour and for subminimum tipped wages to be phased out, launching a new campaign and citing struggles with high living costs. Supporters point to strong public backing for the proposal while business groups warn such an increase could strain small businesses and the broader economy. Mike O'Halloran, director of the National Federation of Independent Businesses Maryland, said: "Despite the rhetoric surrounding a living wage, raising Maryland's minimum wage to $25 will only stifle Main Street growth and job creation throughout the state."
The simple truth: Maryland's business climate is already among the toughest and most expensive in the country. On top of that, businesses are shouldering $1.6 billion in new taxes and fees passed last session, many of which directly affect their operations and ability to grow. Raising the minimum wage to $25 would add even more strain, forcing some businesses to cut staff or close.
5 — Maryland second-worst state to start a business, study finds
Maryland ranked 49th in WalletHub’s 2026 Best & Worst States to Start a Business study, making it the second‑worst state in the nation for launching a new business — besting only Rhode Island. The ranking reflects a combination of challenges for entrepreneurs, including high labor costs, limited availability and affordability of office space and a lack of diversity across key industries. Despite having a strong workforce and infrastructure in some areas, these obstacles contribute to a difficult environment for startups and small businesses looking to grow in the state, signaling potential economic hurdles for Maryland’s business community.
On competitiveness: The Maryland Chamber is concerned that the state’s latest ranking highlights ongoing challenges to Maryland’s economic competitiveness, including high costs and limited opportunities for new enterprises. This underscores the need for policies that reduce barriers, attract investment and support sustainable growth for employers and entrepreneurs across the state.
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.
