Maryland Department of Health FY26 overview: budget dip, ‘End the Wait’ funding reduced and overdose/crisis programs examined

At a Health and Human Services (HHS) Subcommittee hearing, Department of Legislative Services analysts Naomi Camaro and Ann Braun presented the Maryland Department of Health's fiscal 2026 overview, reporting a roughly 1.3% decrease in the agency's total budget to approximately $21.5 billion and flagging major fiscal 2025 deficiencies and contingent reductions tied to the Budget Reconciliation and Financing Act (BRFAA).

The nut graf: DLS identified several high‑priority issues for the committee: large deficiencies in Medicaid and developmental disability services, persistent home‑and‑community‑based services (HCBS) registries and wait lists (the ‘‘End the Wait’’ efforts), the state’s overdose response funding and opioid settlement distributions, and a stressed cigarette restitution fund (CRF) with declining revenues and statutory restrictions on uses.

Major budget figures and DLS findings

- DLS reported proposed fiscal 2025 deficiencies that net to an increase of about $2.25 billion to the fiscal 25 appropriation for MDH, including roughly $740 million for Developmental Disabilities Administration (DDA) community services and about $650 million for shortfalls in Medicaid and behavioral health Medicaid services. - DLS noted cost containment actions (approved by the Board of Public Works in July 2024) including a $12 million reduction in core public health services funding for local health departments. - Contingent BRFAA reductions total about $240.6 million in general funds in the fiscal 26 allowance if BRFAA provisions take effect; examples include $92 million in contingent Medicaid savings tied to a hospital assessment change and other contingent…