2026 Legislative Priorities

2026

Legislative Priorities & Anticipated Critical Issues for Maryland

mdchamber.org

The contents of this report are provided for informational purposes only, and should not be construed as legal, tax, investment, financial or other advice. © 2025 Maryland Chamber of Commerce

A letter from our President & CEO Step inside any Maryland business — into the early morning hum of a bakery in Frederick, the precision of a manufacturing operation on the Eastern Shore, or the buzzing co-working spaces where Baltimore entrepreneurs are building what’s next — and you’ll see the same thing: people turning ideas into opportunity. These businesses are the backbone of our economy and the heartbeat of our communities.

Maryland is at a pivotal moment. Employers across the state are creating jobs, investing locally, and driving innovation — yet too often their success is shaped by policies that don’t fully reflect the challenges or opportunities they face. We can continue on our current trajectory, or we can choose a more competitive and forward-looking path.

As we enter the 2026 legislative session, the Maryland Chamber of Commerce is committed to elevating the voice of Maryland’s business community and championing policies that help employers grow and thrive. Last year, our members helped stop harmful tax proposals, advance more practical regulatory approaches, and strengthen the business climate — clear proof that advocacy works and that business leaders make a powerful impact when unified.

But the work ahead is urgent. Maryland has tremendous advantages — our location, talent, and innovation capacity — yet we continue to compete with states experiencing faster job growth and stronger investment. To secure a brighter future, we must modernize the policies that shape our competitiveness.

Our member-driven committees have identified clear priorities for the year ahead: •

Business Taxes & Fiscal Strategy — Support growth while avoiding measures that hurt our overall competitiveness.

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Transportation Funding — Secure long-term, sustainable solutions for the state’s Transportation Trust Fund.

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Energy & Climate Policy — Balance climate goals with cost, reliability and affordability.

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Data Privacy & AI — Fix inconsistencies and ensure clear, innovation-friendly rules.

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Workforce Development — Expand apprenticeships, childcare access and job pipelines.

These priorities reflect our long-term vision: a Maryland where businesses of all sizes can grow, communities thrive, and opportunity is within reach for every resident. The Chamber’s work is more than advocacy — we are conveners, problem-solvers and partners advancing solutions alongside state leaders, local chambers and community organizations.

And we need you with us. Maryland’s competitiveness depends on business leaders willing to engage and shape decisions in Annapolis. The stakes in 2026 are high, but so is our opportunity. Together, we can build a more competitive, dynamic Maryland — one that attracts investment, supports job creation, and strengthens communities across the state.

Mary D. Kane President & CEO

Your Voice Matters: Here’s How to Make an Impact Maryland stands at a pivotal moment, and the voice of our business community has never been more essential. As the Maryland Chamber of Commerce advances a bold, data-driven agenda to strengthen our state’s competitiveness, we need engaged business leaders at the table — shaping solutions, amplifying priorities and ensuring lawmakers understand what it takes for employers to grow and thrive here. Your involvement directly fuels our ability to drive meaningful change in Annapolis and across the state.

JOIN A POLICY COMMITTEE Shape the Maryland Chamber’s agenda and priorities.

ADVOCATE IN ANNAPOLIS Speak up on proposed legislation affecting Maryland businesses.

CONNECT LOCALLY Attend events to network, share ideas and support community initiatives.

SHARE YOUR STORY Highlight how your business is creating jobs and driving innovation.

INFLUENCE IN ACTION: OUR RESULTS FROM SESSION 2025

400+ business leaders

100,000+ total emails sent

3,700+ patch through calls

registered to testify (in-person & virtually)

to Maryland legislators; 5,200+ individual-initiated

connecting constituents directly to lawmakers

20,000+ total page visits

330 impact surveys filled

2.5M+ social impressions

16,300+ primary landing page views tracked

that were used to build our session action base

28,290+ link clicks; 2.89% click rate; 397,400 reach

271,079 impressions

2.5%+ average click rate

Earned media footprint

on programmatic social display ads

from advocacy campaign email broadcasts

largest in the Chamber’s recent history

Every action strengthens Maryland’s business climate. Your involvement makes a difference.

2026 Legislative Priorities 1 Business Taxes Tax policies that promote business creation and retention generate critical economic opportunities for all Marylanders. As Maryland addresses future budget deficits, the Maryland Chamber stands ready to work with the legislature and administration to achieve solutions that prioritize economic growth, responsible government spending and job creation. Policies that promote business creation and retention expand Maryland’s tax base and ensure sustainable revenue streams that support vital public services. We urge Governor Moore and the General Assembly to develop well-balanced fiscal strategies that promote economic stability and foster job creation without disproportionately impacting Maryland’s business community. Tax policies that reduce Maryland’s competitiveness with surrounding states constrain economic opportunities for all Marylanders and risk longterm fiscal challenges for the State. Policymakers must carefully consider the trade-offs between generating new revenue and enhancing Maryland’s economic competitiveness.

2 Transportation Funding Solutions As Maryland continues to incentivize electric vehicle adoption and the use of fuel-efficient vehicles grows, it is imperative the General Assembly take steps to address the sustainability of the Transportation Trust Fund (TTF) and its reliance on the gas tax as a key funding source. The TTF serves as Maryland’s primary source of funding for infrastructure and transportation needs.

Enhanced and sustainable long-term funding solutions are essential to support Maryland’s economy and ensure the safe and efficient movement of people and goods. The Maryland Chamber looks forward to being a collaborative partner in discussions with the legislature and administration to identify solutions that secure Maryland’s transportation future.

3 Business-Driven Data Privacy & AI Solutions The Maryland Chamber supports the development of a regulatory framework that addresses both data privacy and artificial intelligence in a manner that balances innovation with consumer protection. Maryland’s current data privacy law, passed in 2024, contains inconsistencies and compliance challenges compared to other states. It is crucial to address issues with the current law to provide businesses with clarity and reduce the burden of navigating a patchwork of regulations.

Additionally, as AI continues to evolve, policymakers and business leaders must collaborate to ensure a flexible and balanced regulatory approach that fosters innovation while safeguarding privacy and ensuring ethical use and fair competition. Such an approach will enable Maryland businesses to harness the potential of AI while maintaining consumer trust and market integrity.

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2026 Legislative Priorities (cont.)

4 Climate Tax Policies & Energy Reliability The Maryland Chamber advocates for a balanced approach to achieving the state’s climate goals that fosters economic growth. As Maryland strives to meet the ambitious goals established under the Climate Solutions Now Act, it is imperative that we pursue strategies that do not impose undue financial burdens on our businesses and consumers. Proposed measures to raise revenue to pay for climate mitigation threaten to introduce over $1 billion in additional taxes annually, undermining the state’s economic stability amid growing budget deficits and slow economic growth. The Maryland Chamber of Commerce urges policymakers to prioritize cost-effective solutions that enhance grid reliability, embrace an all-of-the-above energy strategy that advances the development of a diversified and inclusive energy portfolio and foster innovation.

5 Job Creation & Workforce Development The Maryland Chamber supports legislation and budget initiatives that create jobs and expand economic opportunity for every Marylander. Policies that incentivize job creation and workforce development generate growth and economic mobility. Expanding apprenticeship ratios, improving access to childcare, and investing in programs that directly connect Marylanders with job opportunities create direct pipelines to success for Maryland’s businesses and workers. The Maryland Chamber of Commerce will continue to support legislative and budget initiatives in the 2026 session that create jobs and promote workforce development for all Marylanders.

Diversity, Equity & Inclusion At the Maryland Chamber of Commerce, our mission is to advance inclusive partnerships for a Maryland where all businesses and their communities thrive. We believe that no matter the industry, diversity, equity and inclusion are business imperatives. Greater diversity benefits Maryland’s economy, businesses, communities and employees.

To engage more fully in the complex challenges surrounding equity, we are prepared to listen, learn and take proactive steps toward meaningful change in the workplace and in our communities.

2026 Legislative Priorities & Anticipated Critical Issues • 4

Business Regulations & Operations We address regulatory issues affecting daily operational activities and support legislation that allows market force principles to work in the state’s economy.

ANTICIPATED CRITICAL ISSUES: Regulatory Reform: Regulatory reform remains an important component to attracting and retaining businesses. It is critically important that the administration continue to remove red tape and jobkilling regulations.

Procurement Reform: Comprehensive procurement reform is necessary to address a system that is notoriously cumbersome and often leads to a lack of competition among service providers. To provide consistency and uniformity in the procurement process across all levels of government, we support state procurement mirroring federal procurement laws when possible.

Permitting Reform: Streamlining Maryland’s permitting process is essential to fostering a competitive business environment. Lengthy and unpredictable approval processes add unnecessary costs and hinder business growth. We support efforts to remove barriers and create a more efficient, predictable system that encourages investment and helps businesses bring products and services to market faster, ultimately driving job creation, development, and economic growth.

Antitrust: We oppose changes to state antitrust laws and regulations, such as new premerger notification requirements and changes to pro-competitive mergers and acquisitions, that would place Maryland businesses at a competitive disadvantage to those in other states.

Civil Liability We believe the civil law system should not punish lawful commerce. Issues related to tort reform and civil liability are of interest, including opposing efforts to expand exposure to liability and damages that weaken businesses’ defenses.

ANTICIPATED CRITICAL ISSUES: Non-Economic Damages: The Maryland Chamber opposes any erosion or repeal of Maryland’s longenacted caps on non-economic damages, as this would negatively impact the affordability and availability of liability insurance and expand liability exposure, creating significant risks for Maryland businesses and reducing employment opportunities.

Punitive Damages: We oppose any change to Maryland’s current standard for the award of punitive damages, especially a change that could increase the cost of doing business in the state.

Contributory Negligence: The Maryland Chamber supports maintaining Maryland’s long-standing doctrine of contributory negligence, a vital defense for businesses that limits undue liability exposure and provides a fair standard for allocating fault. We oppose any efforts to weaken or replace it with comparative fault, which would tip the current balance in Maryland’s fault allocation system, expand legal liability, and create additional risks for Maryland businesses.

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Cyber & Technology The fields of cyber and technology are important and growing sectors of Maryland’s economy.

We support the development of policies that encourage growth, entrepreneurship and innovation.

ANTICIPATED CRITICAL ISSUES: Broadband Expansion and Connectivity: We support policies that encourage and remove barriers to the continued deployment of broadband technology, including 5G, throughout the state. We also support policies that ensure any expansion process is transparent and competitive to ensure equitable access to all parties.

Data Privacy: We support addressing the inconsistencies and compliance challenges that exist in Maryland’s data privacy law passed during the 2024 session compared to the laws adopted by other states. Addressing the inoperable components of the law will provide certainty to Maryland’s business community and reduce the challenges of patchwork compliance in this complicated and nuanced regulatory area.

Net Neutrality: We closely monitor any policy that would reinstate rolled-back federal regulations on the internet that creates challenges and inconsistencies for businesses that work across state lines.

Artificial Intelligence: Policymakers and business leaders must work together to develop a balanced and flexible regulatory framework that allows companies the freedom to utilize AI in a positive and ethical manner. It is vital to foster innovation while safeguarding privacy, ensuring fair competition, and aligning Maryland’s policies with those of other states to maintain a consistent and competitive regulatory environment.

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Education & Workforce Development We support an educational and vocational ecosystem focused on developing, retaining, and attracting a more globally competitive workforce. We believe in strategies that seamlessly link education and workforce development and embed skills-based learning into academic instruction.

ANTICIPATED CRITICAL ISSUES: Apprenticeship and Intern Tax Credits & Reform: Expand the pool of apprenticeship and career technical education opportunities for the next generation of workers, while also simplifying the process to apply for a credit. We also support the recruitment and retention of skilled trades to meet current and future workforce demands for transportation and infrastructure upgrades.

Apprenticeship Statutory Definition: Expand the definition of a qualifying apprenticeship to capture a greater segment of the work training population and increase the number of employers who can access apprenticeship related incentive programs. We continue to support expanding apprentice-tojourneyperson ratios in non-building trades to open more pathways to economic opportunities Second Chance Employment: Expand career and education opportunities and attainment for justiceimpacted individuals, including individuals in the addiction recovery community and those who are currently or formerly incarcerated, while ensuring employers are protected from liability associated with hiring.

Military Retirement Relief: Recognizing the many benefits veterans bring to their communities, Maryland’s neighboring states have made it a priority to recruit and retain military retirees. As a result, Maryland continues to suffer brain drain as military retirees take their talents and experiences elsewhere. With a high concentration of cybersecurity, intelligence, and defense related jobs alongside major workforce challenges, it is time Maryland’s elected leaders get serious about retaining our veterans. The Maryland Chamber supports the elimination of the state income tax on uniformed services retirement pay. The elimination of said tax will make Maryland competitive in retaining veterans and their families while solving a major workforce challenge.

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Energy & Environment We support community and business endeavors that sustain, enhance, protect and conserve Maryland’s natural resources for present and future generations. At the same time, we work to balance environmental protection with Maryland’s energy, economic and reliability needs. Our focus includes strategies that ensure a resilient, affordable and reliable energy system.

ANTICIPATED CRITICAL ISSUES: Climate Change and Greenhouse Gas Emissions: •

We closely monitor initiatives regarding renewable energy portfolio standards, clean energy and climate goals, and transportation sector requirements. We support the development of clean and renewable energy sources and transportation initiatives by advocating for voluntary, incentive-driven strategies that encourage innovation while avoiding unnecessary costs to businesses. It is essential that any policy implementation follows a reasonable timeline. These key components limit the impact on the state’s economy and ensure the protection of the manufacturing and transportation sectors.

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Transitioning to electrification, especially with aggressive timelines, places significant cost burdens on consumers, businesses, and households while straining the grid’s ability to handle increased demand. With the growing state budget deficit, we urge fiscal responsibility and a focus on cost-effective solutions that prioritize reliability and avoid placing excessive financial strain on the state, ratepayers and businesses. Careful consideration must be given to avoid unreasonable increases in electric rates, ensuring that the transition does not worsen the overall financial impact.

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Finally, we support a diversified, equitable and inclusive energy portfolio, which enhances energy security, reduces dependence on a single source and ensures a reliable energy supply for all.

Chemical Regulation: We support a science-based regulatory structure that recognizes and considers the many unique properties and applications which exist within a single class of substances. We advocate for feasible, practical regulations grounded in sound evidence, particularly for substances that are essential for safety.

Recycling: We support market and science-based solutions for recycling that benefit the environment while balancing the needs of manufacturers, businesses and individuals.

Permitting Reform: We support the streamlining and modernization of permitting processes to identify and eliminate unnecessary obstacles and timelines. An efficient and effective permitting process reduces the cost of doing business and attracts investment.

2026 Legislative Priorities & Anticipated Critical Issues • 8

Health Care & Biopharma We believe in meaningful health care reform that allows employers to best meet the needs of their employees. We oppose mandated health benefit demands, as well as regulatory oversight and requirements. We also address issues in legislative interaction in the pharmacological discovery and development processes.

ANTICIPATED CRITICAL ISSUES: Pharmaceutical Pricing and Availability: We are sensitive to the concerns regarding cost and availability of prescription drugs and are supportive of developing comprehensive, long-term solutions to help slow the ever-increasing costs of health care in Maryland and to promote public policies that will help improve the overall health and well-being of Maryland’s citizens and our employees. Maintaining a viable health insurance market with affordable and accessible pharmaceuticals is essential to making Maryland a competitive place to do business.

Drug Dispensing Fees: We oppose the adoption of state mandated pharmaceutical dispensing fees on private employer drug benefit plans. These fees enhance neither the quality nor availability of healthcare services in Maryland but instead drive up the cost of healthcare for Maryland’s employers and employees.

Employee Development: We support workforce development initiatives that help produce qualified employees for Maryland’s ever increasing healthcare demands. A well-trained healthcare workforce is critical to ensuring the health and well-being of patients.

Professional Employer Organizations: We recognize the importance of open access to Professional Employer Organizations (PEOs) for small and mid-sized businesses. Allowing PEOs to offer aggregated health plans can provide greater flexibility and a streamlined approach to managing employee health benefits. Access to these services will enhance Maryland businesses’ ability to attract and retain talent while improving access to affordable health care options for their employees. Changes to Maryland’s existing PEO policies must ensure transparency and partnership with existing health care partners.

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Labor & Employment We seek to maintain a balance in the relationship between employees and employers within the state and work to ensure policies are created that promote fairness and reduce excessive mandates.

ANTICIPATED CRITICAL ISSUES: Pre-Emption: We support legislative language allowing for a single law for the state instead of a patchwork among hundreds of jurisdictions.

Paid Family Leave Benefits: During the 2022 legislative session, the Maryland General Assembly passed a paid family leave program inconsistent with many of the best practices and definitions used in other states. After initial enactment, the Maryland General Assembly made changes to the law during the 2023, 2024 and 2025 sessions, which included modifying definitions and delaying implementation. Despite the changes, we continue to have significant concerns regarding the program’s eligibility criteria. Specifically, allowing employees to qualify for the program after working 680 hours for any employer in the state will create challenges for workforce management.

Additionally, we continue to seek clarity on the provisions for self-employed individuals, and we continue to support legislation that aligns Maryland’s FAMLI program more closely with the federal FMLA, which would ensure the program works for both employers and employees.

Collaboration with the Maryland Department of Labor is essential to address the program’s workability and regulations. As we near the beginning of contributions on January 1, 2027, and the rollout of benefits by January 3, 2028, we urge the Department to prioritize public outreach and education to ensure employers and employees are prepared for the program.

Cannabis — Adult-Use Legalization: Following the enactment of the adult-use legalization bill on July 1, 2023, we support an employer’s right to maintain their existing testing and workplace policies, and we oppose any bans on testing or taking employment action as a consequence of test results.

The Maryland General Assembly and the state must continue to consider the impacts on employers and Maryland’s workforce while implementing and regulating this policy. We advocate for consistent testing standards across all substances, including alcohol and other drugs, ensuring employers can use established testing methods when there is reasonable suspicion of impairment to maintain a safe workplace for both employees and customers.

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Taxation We support tax policy reform that reduces the cost of doing business. It is our goal to strengthen the state’s competitive tax climate to help attract and retain businesses, talent and investment.

ANTICIPATED CRITICAL ISSUES: Business Tax Environment, Combined Reporting and Throwback Rule: We oppose the adoption of tax reapportionment schemes such as the “throwback rule”, mandatory unitary combined reporting, or any other system which creates an economic disadvantage for Maryland businesses. Combined reporting is especially problematic in uncertain and poor economic climates as it makes already volatile corporate tax revenues more unstable. Further, combined reporting has been extensively studied by Maryland and surrounding states and has been found to offer little to no economic benefit.

We oppose any attempt to increase the tax on Maryland businesses organized as Pass Through Entities (PTE’s) who pay their business taxes as personal income. Maryland PTE’s are some of the state’s smallest businesses who already pay taxes at a higher rate than other personal income at 5.75%. Raising the rate to match the corporate 8.25% places Maryland’s smallest businesses at a competitive disadvantage to those in surrounding states or to other businesses organized under different structures.

Expanding the Sales Tax on Services: We oppose any expansion of the sales tax on services not currently listed in Maryland law. Taxing services places a disproportionate burden on small businesses as they are more likely to contract out professional services. These increased costs are often passed on to consumers, driving up prices of critical services.

Evaluation of Maryland’s De-coupling Provisions: We support a thorough evaluation of Maryland’s current de-coupling law related to the federal tax structure and the advantages and disadvantages that exist.

Growing Maryland’s Economy: We encourage the General Assembly to evaluate all other alternatives to raising taxes on businesses in Maryland’s ever-changing economic environment. Maryland policy makers must rely on strategies encouraging business investment and creation to bring about longterm sustainable growth and revenues for the future. Making it more costly to operate a business in Maryland will have a deleterious impact on Maryland’s long-term economy and investment. We look forward to working alongside Governor Moore and other legislative leaders who are committed to a vision of economic growth, business investment and job creation.

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Transportation & Infrastructure We believe improved state infrastructure boosts economic opportunity. We support policies that advance short- and long-term solutions to statewide transportation and transit needs. We support sustainably funded solutions that safely and reliably transport people and goods.

ANTICIPATED CRITICAL ISSUES: 5G, Small Cell and Broadband Expansion: We support the expansion of technology infrastructure such as 5G, small cell, and broadband to address the need for increased connectivity across all Maryland communities. Further, we support market incentives that may aid in faster deployment to more quickly address Maryland’s digital divide.

Transportation and Infrastructure Funding: We support policies that prioritize the state’s investment in critical infrastructure projects, connect communities and support economic growth, aiming to enhance the safe and efficient movement of people and goods. This includes addressing the Transportation Trust Fund (TTF) structural deficit, addressing the transportation needs of underserved communities, and adopting a comprehensive approach to sustainable, long-term funding sources.

Vehicle Emission Reductions: Any policies aimed at meeting greenhouse gas reduction goals should take into account all the costs, both direct and indirect, associated with implementation. Further, policy decisions tied to other state standards should consider the inherent differences between states and populations.

Workers Compensation & Unemployment Insurance We work to achieve a fair balance between the employer and employee in workers’ compensation claims. Similarly, we work toward policies to provide fair unemployment insurance benefits to workers without creating an undue burden on job creators.

ANTICIPATED CRITICAL ISSUES: Solvency of the Maryland Unemployment Trust Fund: Every effort should be made by the state to ensure a healthy balance of the unemployment insurance trust fund. Any new funding proposals should consider the current economic landscape and cost implications for Maryland businesses.

Unemployment System Reform: The business community supports an unemployment insurance system that balances the interests of both employees and employers and provides employers with clarity and transparency of the program’s operations and financial impact. Every effort should be made to evaluate potential changes against the programs of neighboring states so that Maryland businesses are not shouldered with excess burden compared to those in surrounding jurisdictions. Additionally, any new employer fees to cover administrative costs must be closely scrutinized to ensure they are fair and equitable in relation to the existing taxes employers already pay into the trust fund.

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