Maryland governor unveils economic growth plan for 2025 legislative session

Maryland’s Governor Wes Moore is announcing an economic growth agenda to guide the state’s 2025 legislative session and outline budget priorities for fiscal year (FY) 2026.

“Together, we have laid out an economic growth strategy that plays to Maryland’s unique strengths—so we can spur business growth and build an economy that works for everyone,” said Gov. Moore. “In partnership with the General Assembly, we will make Maryland a place where businesses want to grow and thrive, create good-paying jobs in industries of the future and connect more Marylanders with opportunity. Gone are the days of being asset-rich, but strategy poor.”

The comprehensive economic growth package outlines the state’s priorities for the upcoming legislative session and budget year, including funding for new targeted investments, legislative reformations and strategic public-private partnerships (P3). The agenda seeks to redefine the state’s economic landscape, drawing on its proximity to major research institutions, federal agencies and diverse, skilled workforce to establish a competitive, future-ready economy.

At the heart of Moore’s economic growth plan is a proposed budget of over $750 million in operating and capital funding for FY 2026, with a particular focus on economic development, workforce training and infrastructure. The budget will include funding for a variety of initiatives poised to improve key business and technology sectors, such as advanced manufacturing, quantum computing, business support andP3s.

Of the FY 2026 funding, $128.5 million is intended for targeted investments that are expected to generate significant economic activity, including job creation, private investment, enhanced business competitiveness and infrastructure project expedition.

These target investments include:

$25 million for the Economic Development Opportunities Program Fund, or “Sunny Day Fund,” at the Department of Commerce. The initiative seeks to attract major economic development, business relocations and to expand economic opportunities across the state.

$15 million to a redevelopment project at the Port of Baltimore. The Terminal Container Project, led by Tradepoint Atlantic, will redevelop approximately 168-acres of land to generate more than $1 billion in private sector investment, create more than 1,000 new union jobs and reinforce the port’s competitiveness on the East Coast.

$10 million for the Strategic Infrastructure Revolving Fund at the Maryland Economic Development Corporation. The fund, which provides long-term loans, supports a variety of initiatives, including transformative placemaking, transit-oriented development, community development and equitable economic growth objectives.

$2.2 million in additional funding for the Child Care Capital Revolving Fund, which delivers funding to childcare providers. The investment will bring the fund’s total for FY 2026 to $10 million.

$2 million to John Hopkins University for the construction of a new multidisciplinary design center in Baltimore. The proposed center will serve as a hub for the university’s artificial intelligence, design-focused undergraduate curriculum and data science initiatives.

$1.5 million for a cybersecurity initiative intended to build cyber ranges at community college campuses and expand workforce opportunities.

The FY 2026 budget will also prioritize investments for P3s that pursue innovative technologies to keep Maryland competitive in global markets and catalyze private investments into state industries.

The state’s P3 efforts are highlighted by the landmark “Capital of Quantum” initiative, which will receive $27.5 million from the FY 2026 budget. Led by the State of Maryland, University of Maryland and other partners, the project will research and develop quantum information science and technology.

Maryland’s economic growth strategy also includes funding for a variety of workforce, apprenticeship, business support and p3 incentive programs, including:

$10 million for the Build Our Future Innovation Economy Infrastructure Program, which will provide grants to stimulate economic growth and expansion. The program will support infrastructure projects that enhance key technology sectors, such as wet laboratories, cyber ranges and prototype manufacturing centers.

$7 million to the newly established Maryland Business Ready Sites Program. Enacted through executive order in December 2024, the program will deliver matching grants to local governments and private developers that leverage additional public-private investment to expedite infrastructure projects.

$6 million for the Maryland Manufacturing 4.0 program, a state funding program that targets small- to medium-sized businesses. The 4.0 program supports investments in Industry 4.0-related technologies, machinery and robotics and digital business practices to keep Maryland businesses competitive.

$5 million in supplemental funding for the EARN Maryland Program, which finances apprenticeship and workforce training programs in certain industries and sectors in the state. The program now has access to a total of $24.5 million for FY 2026.

$5 million to the Cyber Maryland Program. Designed to address workforce vacancies, the program is designed to create a wide and diverse talent pipeline in cybersecurity, while coordinating the research and development of new cybersecurity innovations.

$2 million for the workforce development-oriented BioHub Maryland Program, which intends to accelerate growth in the life sciences industry by expanding the state’s domestic biopharma manufacturing talent pipeline.

In addition to budget adjustments, Maryland’s economic growth agenda outlines several legislative proposals designed to enhance the state’s business climate, address housing inequities and develop pathways for a new workforce.

The DECADE Act is part of a larger statewide approach to improve economic development and expand opportunities for business growth. The bill seeks to streamline and modernize the state’s economic development programs by reallocating funds from underperforming programs to more impactful initiatives.

The agenda also proposes the Housing for Jobs Act, which would increase housing production in regions where housing shortages hinder the creation of jobs and growth of businesses. The proposal looks to reduce housing costs and help businesses attract and retain skilled workers.

Another piece of proposed legislation, the RAISE Act, would prioritize the expansion of access to high-quality registered apprenticeships and training programs around the state. The bill will establish the Maryland Office of Registered Apprenticeship Development, create two new workforce programs and explore pathways to automatic licensure for certain apprentices.

Maryland’s final proposed bill, the Procurement Reform Act, is seeking to substantially upgrade the state’s procurement processes to better secure state contracts. The bill will support small businesses’ access to state contracts by creating a merit-based pathway to success and improving overall economic competitiveness.

Maryland’s targeted investments, new programs and legislative actions look to position the state as a leader in economic growth by strengthening its business climate, expanding key industries and fostering a skilled workforce and supportive ecosystem. According to an analysis conducted by the Jacob France Institute, the state’s economic growth strategy is anticipated to generate approximately $515.6 million in economic activity.

Photo courtesy Martin Falbisoner, CC BY-SA 3.0 https://creativecommons.org/licenses/by-sa/3.0, via Wikimedia Commons