Maryland House adopts conference budget, BRFA after heated debate over taxes and fees

The Maryland House of Delegates adopted the conference committee reports for the fiscal 2026 operating budget and the budget reconciliation and financing act on March 22, finishing a marathon floor session that included extended debate over new taxes and fees introduced to balance the state books.

The conference committee chair presented the reconciled budget, saying the package "provides a structurally balanced budget" and restores funding for education, Medicaid and transportation while leaving cash reserves in the rainy day fund. The chair said the plan closes a gap left when federal uncertainty and a prior write-down widened a deficit to roughly $3.5 billion and that the compromise leaves nearly $2.0 billion in rainy day reserves.

Supporters said the package protects priorities including school funding formulas, transportation projects and health programs. "Together . . . we present a budget that protects our shared values and priorities while putting Maryland on strong footing," the conference committee chair said on the floor.

Opponents called the revenue and fee package excessive and warned of long-term economic consequences. Several delegates criticized new or expanded levies in the package, pointing to a combined set of revenue measures that conference materials show would generate more than $1.6 billion in ongoing general fund revenue and additional special fund and fee increases. Critics said the package included a sales tax on specified digital and IT services, increases to vehicle-related fees and taxes, and a per‑tire fee. "This is the largest single tax and fee increase in Maryland history," a delegate opposing the budget said during debate.

The conference committee moved first to adopt its report; the House adopted the report by voice vote and then moved House Bill 350 to the end of the third‑reading calendar. Later in the day the House took final passage votes. House Bill 350 (operating budget) passed on final passage with 101 affirmative votes on the floor. The companion budget reconciliation and financing act, House Bill 352, also passed after floor action and roll calls; the bill was adopted by the House with a final affirmative vote recorded as 97.

Floor debate included repeated questions about specific revenue provisions and how revenue streams would be applied. Delegates asked about the proposed digital/IT services tax, exemptions for cyber‑security and certain discovery/innovation districts, transfers from special funds (including the cigarette restitution fund), and the status of supplemental or contingent Medicaid funding lines. Committee and floor leaders responded that most revenue measures had received hearings in the Ways and Means Committee and that some carve‑outs (for cyber security, and for an innovation district) had been negotiated in conference.

The House also debated and voted on related conference items: the budget reconciliation report, the allocation of transportation trust fund resources, and the use of special fund balances to cover certain fiscal 2026 needs. Delegates repeatedly expressed concerns that the state may face structural pressure in the next three to five years requiring further fiscal adjustments.

What passed: adoption of the House Bill 350 conference committee report and final passage of House Bill 350 (fiscal 2026 operating budget), and adoption and final passage of House Bill 352 (Budget Reconciliation and Financing Act), with the tallies recorded on the floor as 101 yes for HB 350 and 97 yes for HB 352.

The bills as adopted now proceed toward enrollment and the governor for signature. The budget package includes many program level decisions and revenue measures that require implementation and, in some cases, subsequent regulations or follow‑on legislation.

Votes at a glance (budget items) House Bill 350 (Fiscal Year 2026 operating budget) — conference report adopted; final passage recorded as: 101 yes; outcome: passed. House Bill 352 (Budget Reconciliation and Financing Act of 2025) — conference report adopted; final passage recorded as: 97 yes; outcome: passed.

Sources: Floor debate and conference committee presentation on March 22, 2025 (House floor).