TEDCO defends stem cell and innovation investments as fiscal 2026 allowance drops by $5 million

Troy L. Stovall, chief executive officer of the Maryland Technology Development Corporation (TEDCO), told the Education and Economic Development Subcommittee that TEDCO’s fiscal 2026 allowance decreases about $5,000,000 to an estimated $53,000,000 and that much of the change reflects lower proposed funding for the Maryland Stem Cell Research Fund.

Elizabeth Bridal (Office of Legislative Services) briefed the subcommittee on TEDCO’s budget breakdown, saying roughly 29% of TEDCO’s proposed fiscal 2026 allowance (about $15,500,000) is slated for the Stem Cell Research Fund, roughly 25% (about $13,000,000) for social impact investment funds, and about 14% (approximately $7,000,000) for university research and commercialization programs including the Maryland Innovation Initiative (MII). The analysis noted a $5,000,000 decrease in stem cell funding from the prior year and that Cyber Maryland funding falls to a legislatively mandated minimum of $99,000; contingent language would zero out that Cyber Maryland appropriation if pending legislation moves the program to the Department of Labor.

Rishika Najera, executive director of the Maryland Stem Cell Research Fund, told lawmakers that the fund has supported hundreds of projects across public and private entities in Maryland and has evolved from basic research grants to also include translational, clinical and manufacturing awards. Hyde’s analysis cited a fund history dating to 2007 and a total of about $242,000,000 routed through the fund since that date; the analysis also noted the statute permits both grants and loans, though TEDCO has used grants so far.

"The MSCR funding isn't just about biotechnology funding in general," Vinnie Jindal, co‑founder and CEO of Secretome Therapeutics, told the subcommittee. He said the MSCRF grant his company received helped move research to development and helped unlock private investment. Jindal said his company has raised about $23,000,000 in investor capital and that early state grants helped secure patents, FDA clearances and manufacturing capacity that enabled upcoming Phase 1 clinical trials.

Patient testimony underscored the clinical stakes lawmakers are weighing. Angela Freeman described two stem cell procedures she received, including treatment that restored vision in a previously affected eye. "I came back two weeks later and I said, I can see," Freeman said. "I closed my right eye and I can see letters and I can see numbers and I can see my grandchildren." Freeman urged continued funding for stem cell research, saying cutting the program "would be completely awful."

TEDCO and partner programs also emphasized commercialization and job creation. Stovall said TEDCO measures economic impact in the aggregate and highlighted follow‑on investment and job metrics, including claims that TEDCO activity has helped catalyze follow‑on investment and the creation of thousands of jobs in the state. Abhishek (executive director, Maryland Innovation Initiative) said MII has deployed more than $60,000,000 across universities and start‑ups since its 2012 founding and described a leverage rate of roughly $10 in private funding and $3 in federal funding for every state dollar committed.

Committee members questioned TEDCO leaders about reporting and follow‑up for applicants who are denied funding. Stovall and MII representatives described applicant feedback processes and programs to help founders become "venture ready," and Vinnie Jindal described reapplying after receiving guidance from TEDCO’s expert committee: after addressing recommended changes, his company later received funding.

DLS (the Department of Legislative Services) recommended concurrence with the governor’s fiscal 2026 allowance for TEDCO. The subcommittee concluded the TEDCO hearing after members asked several follow‑up questions on reporting, outcomes, and workforce development.