Friday Five
Dec. 5, 2025 | This week's latest on Maryland business and government
1 — Maryland lawmakers look to regulate utility companies, PJM in coming 2026 session
Maryland leaders are preparing a sweeping effort in the 2026 legislative session to curb rising utility bills. Lawmakers, advocates and energy experts agree that ratepayers are increasingly frustrated as costs climb, without a corresponding improvement in service. Building on 2025’s energy reforms, legislators plan to expand investments in battery storage, solar development and competitive procurement for large-scale solar projects using existing renewable energy funds. They are also revisiting major debates from last session, including disagreements over rebate programs, the phaseout of fossil fuels and whether Maryland should accelerate its nuclear and gas investments.
What to expect: Certain lawmakers are seeking to reshape how data centers interact with the grid by requiring them to provide or manage their own energy capacity, reduce loads when needed and undergo stricter approval processes to prevent strain on PJM’s multistate grid. Additional proposals aim to modernize the grid with new technology, improve transparency in load forecasting and push utilities to adopt cost-containment plans.
2 — Audit finds gaps in oversight of $8.5B in exempt state spending
A legislative audit uncovered that 42 state units in Maryland collectively reported about $8.5 billion in non-payroll operating spending in fiscal 2024 while operating under exemptions from standard state procurement rules. Many of these units either lacked required written procurement policies or had written policies that failed to include key protections such as competitive bidding, sealed solicitations, minority business‐enterprise goals, or public notice procedural safeguards. In some cases, thresholds for internal approvals were significantly higher than those applied to non-exempt agencies, and several exempt entities did not consistently publish contract awards, raising considerable concerns about transparency and oversight.
Possible solution: The audit offers considerations for reform, including consolidating exemptions under one statute, designating a central oversight entity, strengthening publication and approval requirements for exempt units, as well as better tracking of the volume of exempt procurement activity statewide.
3 — One Big Beautiful Bill Act brings tax changes for Maryland businesses, individuals
The One Big Beautiful Bill Act is set to reshape financial planning for both Maryland businesses and individuals by making key provisions of the 2017 tax law permanent and introducing new incentives. For businesses, the restoration of full deductions for domestic research and experimental costs is expected to boost cash flow for research-heavy industries, strengthening Maryland’s biotech and life sciences sectors. Manufacturers gain the ability to fully deduct the cost of building or upgrading facilities, encouraging expansion, modernization and potentially more onshoring — an area where Maryland’s infrastructure and manufacturing base give it a competitive edge. New tax credits for workforce training and apprenticeships in advanced manufacturing are also poised to generate local job growth across industries such as chemicals, aerospace, and defense.
Impact on individuals: Year-end tax planning has become more important for individuals, with charitable deductions becoming more valuable in 2025 before stricter limits take effect in 2026.
4 — Maryland’s moment: Solving competitiveness in 2026
Maryland is facing a decline in economic competitiveness, ranking low nationally for business climate, with high taxes and significant population loss each year. Business formation is sluggish, with closures nearly matching openings and startup survival rates dropping sharply, while neighboring states maintain stronger growth. High costs, new taxes and regulatory pressures are driving companies to expand or relocate out of state, limiting job creation and economic opportunity for residents. The state’s heavy tax burden, rising cost of living and shrinking talent pool create a cycle where limited business growth reduces revenue, forcing higher taxes or reduced public services. Maryland’s policy decisions in 2026 on taxation, energy, housing and regulation will be pivotal in determining whether the state can reverse these trends.
What Maryland needs: Our state needs practical solutions, including lowering costs, streamlining regulations, expanding housing affordability and creating conditions for businesses to invest, hire and grow locally. Aligning policymakers, business leaders and communities around these measures is essential to ensure economic vitality, career opportunities and stronger communities.
5 — Baltimore-area business leaders call for investment in port, airport and transit projects
Baltimore is positioning itself as a major logistics hub, leveraging its cargo infrastructure at Tradepoint Atlantic, BWI Airport and regional ports to drive economic growth. Business leaders are exploring ways to fund expansion projects amid state budget constraints, projected deficits and uncertain federal transportation funding. The Greater Baltimore Committee’s Vision 2035 summit aims to bring together business, government and community leaders to discuss public-private partnerships, infrastructure investments and legislative priorities that enhance transit, freight and livability. Key projects include the $1 billion Sparrows Point container terminal, BWI cargo facility expansions, modernization of the Central Light Rail Line and potential Chesapeake Bay passenger ferry routes.
Challenges remain: Despite some funding and grants, challenges remain, which will require collaboration between the private sector and government to prioritize spending and identify new revenue opportunities.
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.
