The Maryland 2025 legislative session adjourned on April 7. Over the course of the 90-day legislative session 2650 bills were introduced by the House and Senate and an additional 664 legislative bond initiatives were filed. In total, 236 bills have been enacted as of publication with hundreds more awaits consideration by Governor Wes Moore.
RAISE ACT
One of Governor Moore’s top priorities entering the 2025 legislative session was expanding pathways to middle class jobs. His proposal, which the legislature took up, was the Registered Apprenticeship Investments for a Stronger Economy (RAISE) Act. The measure establishes a program that assists employers in hiring and training apprentices. It also creates the Maryland Office of Registered Apprenticeship Development to scale apprenticeships across industries and occupations in the state. “Apprenticeships are key to building an economy that leaves no one behind,” said Maryland Secretary of Labor Portia Wu at the signing ceremony. “This will help thousands of Marylanders move into high-demand, middle-class careers in a huge range of sectors, from healthcare and infrastructure to cybersecurity.” The bill takes effect October 1.
Healthcare
On the last day of session, the Senate unanimously passed HB 820, which outlines requirements for the use of artificial intelligence by carriers, pharmacy benefits managers, and review agents during the utilization review process. Similar legislation is being considered in Maine, Massachusetts, and New York among other states. Multiple bills regulating the use of step therapy in Maryland were also sent the governor. HB 970/SB 646 prohibits insurers from requiring step therapy if a prescription drug is insulin or an insulin analog used to treat the insured's or enrollee's type 1, type 2, or gestational diabetes. HB 1087/SB 921 prohibits insurers from imposing a step therapy or fail-first protocol for a prescription drug approved by the U.S. Food and Drug Administration (FDA) that is prescribed by a treating physician to treat a symptom or side effect of stage four advanced metastatic cancer. Both bills awaits consideration by Governor Moore.
Studies
Several bills establishing working groups and task forces that will provide future recommendations were passed in 2025. HB 956 was signed by Governor Wes Moore on April 22. The bill creates the Workgroup on Artificial Intelligence Implementation. The workgroup is to study and make recommendations on a number of factors related to artificial intelligence, including deployer and developer obligations related to labor and employment and protection of individual privacy rights and general AI disclosures. The bill received testimony from several interested parties throughout the year, which ultimately led to revisions to the composition of the workgroup. The workgroup is to report its findings on July 1 of 2026, 2027, 2028, and 2029.
HB 270/SB 116 is another bill that passed both chambers and is awaiting consideration by Governor Wes Moore. The bill directs the Maryland Department of the Environment, Maryland Energy Administration, University of Maryland School of Business, and Department of Legislative Services to study the environmental, energy, and economic impacts of data center development in Maryland. A final report must be submitted by September 1, 2026. This bill comes a year after Governor Moore signed the Critical Infrastructure Streamlining Act of 2024 which was passed with the intent to bring data centers to Maryland.
Budget
On the last day of session, legislators approved a $67 billion budget for the 2026 Fiscal Year. Key provisions in the budget include:
- Authorization for mobile sports wagering licensees to retain 80% of the proceeds from the online sports wagering received by the licensee.
- An increase in the sales and use tax for cannabis beginning fiscal year 2026 to 12%.
- A decrease in the cap on total amount of film tax credits that may be distributed for fiscal year 2026 to $12 million.
- A sales and use tax exemption on the sale of cloud computing to a qualified cybersecurity business, the sale to a qualified company located in an emerging technology development area made in connection with the work of the company, or the sale by a qualified company located in an emerging technology development area.
What’s Next
Governor Moore has until May 27 to sign or veto any bill sent to him. Legislators may begin prefiling bills for 2026 on November 1 of this year. The 2026 legislative session will convene on January 14, 2026.
The legislature is anticipating returning to Annapolis in the fall for a special session to address the impacts that federal policy could have on Maryland. The state created a bipartisan joint committee to analyze the impact of federal policy, which could lead to a special session. The session would likely address a federal funding freeze as well as the increased number of Marylanders who are impacted by mass layoffs at the federal level.