Maryland Gov. Wes Moore says federal layoffs may impact already-troubled state budget

ANNAPOLIS, Md. - Maryland Governor Wes Moore says the state’s budget troubles are bad and could get worse as federal agencies in the state face cutbacks, and federal workers in Maryland face layoffs.  

The governor testified on his controversial budget plan, calling for income tax hikes and new taxes on delivery fees. 

The governor told FOX 5 that he is "locked in" on his budget proposal which he announced the week before President Donald Trump was inaugurated. Now, one month into the Trump administration, the governor is warning the entire state to prepare for difficult times ahead, as Annapolis absorbs the impact of the president’s Department of Government Efficiency cuts from Washington.

Moore Testifies 

What He Said:

Moore testified to the state General Assembly Thursday on his budget. Maryland is already facing a huge $3 billion budget deficit. The governor is proposing $2 billion in cuts, along with increased revenues from hikes on wealthy Marylanders, raising state fees and a $0.75 tax on deliveries. 

Moore says his tax hikes won’t touch 83% of people, but warned all Marylanders must brace for a DOGE impact.

"What I saw in Washington, it did not just concern me as a governor, it disturbed me as a Marylander," Moore said. "This was going to be hard during normal circumstances and these are not normal circumstances — finding ourselves actively pushing back against what we’re seeing in Washington."

Lawmakers Weigh In

Dig deeper:

Democrats have raised concerns about some proposed cuts, like in higher education and mental disabilities programs. The governor wants two new higher income tax brackets for people making $500,000 and another for people making $1 million a year. 

"They’re not wealthy but under some aspects of your proposal, their taxes would go up and I’m getting a sense from you that’s crucial to your budget plan," Delegate Jason Buckel said.

But Republicans warn he’s not doing enough to attract businesses and the tax and fee hikes will hurt people.

"What we’ve been hearing is the reason for this stagnant economy. Do you think this goes far enough to make that happen?" said Republican Delegate Wayne Hartman. 

What's next:

Despite Republican concerns, it’s Maryland Democrats who hold the cards in Annapolis, controlling both the Senate and the House of Delegates. 

By law, Maryland has to have a balanced budget passed by April 7 – just 39 days away.