Maryland’s 2026 Legislative Session Will Shape Our Competitive Future — Business Must Lead the Charge

Maryland’s 2026 legislative session has begun at a pivotal moment for employers, job creators, and the families who rely on a thriving economy here in our state.

Recent data shows Maryland opened 19,289 businesses in 2024 but saw 17,008 close that same year. That means only 2,281 net new business starts — a significant slowdown from prior years. Worse yet, just 12 percent of new businesses survived long enough to create jobs. These trends tell a deeper story about the challenges facing our economy and the urgency for policy that supports, not hinders, growth.

Maryland carries one of the highest overall tax burdens in the country. That tax load affects employers, families, and workers and plays a measurable role in both workforce mobility and business location decisions. From 2020 to 2024, more than 120,000 residents left the state, taking income and taxable earnings with them.

Our state has assets. Maryland is home to world-class research institutions, strategic military and federal infrastructure, and talented professionals across industries. These strengths should translate into economic dynamism and population growth. But the current combination of high costs, regulatory complexity, and fiscal uncertainty is creating headwinds instead of momentum.

Competition Doesn’t Wait
Neighboring states actively pursue business investment, tax reform, and regulatory predictability. Many offer more competitive tax rates and incentives designed to attract companies at all stages of growth. Maryland must match or exceed those incentives if we want employers to invest here rather than across state lines.

The 2026 General Assembly must prioritize policies that:

• Create a tax environment that encourages business formation and retention, not one that drives companies away.
• Ensure regulations are clear, efficient, and consistently applied so businesses can plan for the long term.
• Address workforce shortages with practical solutions that align education and training with employer needs.

These are not abstract ideas. They are the building blocks of economic growth and community stability. A competitive business climate means more jobs, higher wages, and stronger local economies across Central Maryland and beyond.

Legislative Decisions Will Impact the Next Decade
With a projected $1.2 billion budget gap confronting lawmakers this session, tough decisions lie ahead. Lawmakers have signaled they intend to address the shortfall without adding new taxes after recent increases, but that means hotly debated budget cuts and prioritization across programs.

Those choices have real consequences for our business environment. Funding priorities, tax policy, licensing requirements, and fiscal discipline all impact whether Maryland becomes a magnet for investment or continues to lag behind peer states.

Businesses cannot afford to remain on the sidelines while these debates unfold. Decisions made in Annapolis this session will echo through our economy for years.

Business Must Be at the Table
At the Central Maryland Chamber, we believe that strong, engaged business leadership must drive this conversation. Employers of all sizes have firsthand insights into the challenges of operating here. Your voice matters.

When business leaders engage with policymakers we achieve results. When we act together we are more influential. Chambers of commerce are not just advocates; we are builders of economic opportunity.

Join the Central Maryland Chamber and Be Part of the Solution
Maryland’s competitiveness and prosperity should not be left to chance. We can shape it — but only if business speaks with one powerful voice.

Membership in the Central Maryland Chamber means:

• Being part of a collective voice that lawmakers hear and respect.
• Access to insights on legislative priorities and economic data that affect your bottom line.
• Opportunities to shape policy that expands job creation and business investment.

Maryland can be a leader in business growth. But it will take coordinated effort, clear priorities, and the strength that comes from unity.

​If your business is not yet part of the Central Maryland Chamber, now is the time to join. Together we are stronger. Together we can make Maryland more competitive.

​www.centralmarylandchamber.org