Greetings from Annapolis,

It has been an honor and a pleasure serving the citizens of Harford and Cecil Counties during this 447^th Session of the Maryland General Assembly. Thank you for your support and encouragement over the past 90 days.

The 2025 General Assembly Session has ended, and we have been working hard for District 35 and all of Maryland.  In this session, I sponsored 15 pieces of legislation and co-sponsored an additional 28 pieces of legislation.  Most of these initiatives were geared toward increasing public safety, reducing taxes on individuals and small businesses, reducing regulations on our farmers, getting violent criminals off our streets, protecting the Second Amendment, and giving our parents more transparency when it comes to their child’s education. 

A total of 3,281 pieces of legislation were introduced this past Session. Governor Moore has until May 30^th to sign bills into law, veto them, or allow them to go into law without his signature.

If you have any questions, concerns, or thoughts on future legislation, please do not hesitate to contact our office by email at jason.gallion@senate.state.md.us or by phone at 410-841-3603. Once again, thank you for allowing me to represent you here in Annapolis.

Sincerely,

Senator Jason Gallion

District 35

Legislation I Sponsored

SB481 – On-Farm Home Processing License – Revenue Limit – Prohibition

This bill, as drafted, would have removed the revenue cap that an on-farm home processor must comply with. After introduction the Maryland Department of Health agreed to remove the revenue cap for meats and cheeses under the on-farm home processing license. This is a significant win for our value-added agricultural producers.

SB483 – Public Utilities – Alternatives to Construction of New Transmission Lines

This bill would have required the Public Service to examine alternatives to constructing a new transmission line when historical, environmental, or agricultural preservation areas are affected. With the rushed proposal of the Piedmont Reliability Project, it is critical for the state to ensure careful consideration of community impact when building such large, disruptive projects. This legislation would have safeguarded the various community concerns that might be adequately addressed before any construction can proceed, while ensuring that valuable history and productive agricultural land are protected.

SB 479 – Building Energy Performance Standards – Public Safety, Emergency, and Public Utility Buildings – Exclusion

This bill would’ve exempted public safety, emergency, and public utility buildings from state energy performance standards. With building costs rising out of control in large part due to burdensome state mandates, it is important that we not burden public safety infrastructure with these extra costs. I will always fight for the safety of our community, and that includes making important safety structures as affordable to build and maintain as possible. While this legislation did not receive a vote, my suggestion of exempting hospitals was adopted into HB49, which will potentially save the Maryland hospital system billions of dollars.

SB478- Public Utilities – Solar Energy Generating Stations – Local Approval

This bill would have restored local control in the zoning and approval of Solar Panel Projects. The counties and municipalities closest to the communities we serve must have a direct say in these large projects. My legislation would have ensured that community voices are heard and projects that violate the will of the citizens are not forced through over their objections.

SB 640 – Public Utilities – Solar Energy Generating Stations – Eminent Domain

Prevent the use of eminent domain for solar development, and the other would have rolled back a piece of a bill from 2018 that was determined by the courts to allow the state Public Service Commission to pre-empt local zoning decisions on solar development (basically return power to local governments to control their own zoning for solar). 

SB779 Climate Solutions Now Affordability Act

SB 779 was an attempt to roll back the burdensome environmental policies passed in 2021. Specifying that certain requirements under the Climate Solutions Now Act are to be carried out to the extent economically practicable, including requirements concerning:

• Achieving certain direct greenhouse gas emissions reductions from certain buildings
• Measuring and reporting direct emissions data to the Department of the Environment
• Achieving certain greenhouse gas emissions reduction goals, achieving zero-  emission vehicle goals relating to the State vehicle fleet and local school buses
• Payment of a certain prevailing wage by contractors and subcontractors participating in  certain projects undertaken by investor–owned electric companies or gas and electric companies

SB 480 – Department of General Services – Clean Energy Procurement Program – Establishment

This bill would’ve evaluated the potential role of biogas as a traditional and complementary energy source for the state’s transportation and building sectors. SB 480 would’ve further diversified Maryland’s energy strategy, creating stable and cost-effective energy solutions.

SB482 – Public Middle and High Schools – Student Discipline (Right to Teach Act of 2025)

This bill would have authorized middle school and high school teachers to remove a student from their class who has repeatedly interfered with the teacher’s ability to teach and the student’s ability to learn effectively. A principal may not return a student to the teacher’s class without the teacher’s consent unless the principal, guidance counselor, and teacher agree that the placement is the best or only option available. Additionally, a county board may not take disciplinary action against a teacher who removes a student from the classroom.

SB1047 – Election Law – State Elected Officials – Fundraising Activities During General Assembly Session

We have laws prohibiting all state lawmakers, including the Governor, from fundraising during session. These laws were established for one simple reason: to avoid even the appearance of impropriety. There are some exclusions: 1. Running for a County Position, like County Executive or 2. Running for a federal office, like Congress. 

This is an issue that everyone in the General Assembly takes very seriously, as we should. There is not a single member who fundraises during session. That’s because its illegal and has been illegal for 35 years.

In the waning days of session, our Governor, Wes Moore, hosted a fundraiser for a PAC that was created just last year to advance his political interests. Of course, some political consultants and PAC lawyers say it’s legal. But at the least, it does not live up to the spirit of our law. It doesn’t pass the smell test. This is a dark money loophole that needs to be closed immediately. Unfortunately, the bill was not given a hearing due to its late filing, but I plan to re-introduce this issue and bill at the beginning of the 2026 session.

District 35 and Harford County Funded Projects

Our Harford County Senate and House Delegations were able to secure funding for a number of projects. In many cases, these are matching funds to pair with private and/or local government funding that’s been raised.

Harford County

Schucks Road Regional Park – Installation of restroom facilities to support Miracle League baseball. $300,000

Aberdeen Family Swim Center. $500,000

Havre de Grace STAR – Sports Theatre Arts Recreation – Centre. $150,000

Maryland Center for the Visual and Performing Arts. $150,000

Ashley Addiction Treatment. $375,000

iHomes. $200,000

Upper Bay Counseling and Support Services. $100,000

Harmer’s Town Art Center. $50,000

Izaak Walton League of American Conservation and Education Center. $50,000

Sgt. Alfred B. Hilton Memorial Post No. 55. $50,000

Maryland Polo Club. $25,000

Cecil County

Fair Hill Training Center. $1,000,000

NorthBay Environmental Education Center. $375,000

Principio Rail Spur. $1,500,000

Plumpton Park Zoo Tiger-Lion Habitat. $100,000

FY26 Operating Budget

Prior to the start of the 2025 Session in January, we knew that we had to contend with a $3 billion budget deficit, which is projected to grow to nearly $7 billion within the next three years.

The Maryland Democrat Supermajority attempted to deflect blame for the state’s fiscal woes on the Trump Administration, however, Maryland’s financial challenges existed long before Inauguration Day, and are a direct result of two things:

• Years of passing of aspirational spending mandates with no funding source – like the Blueprint for Maryland’s Future – that were passed over Republican opposition and Governor Larry Hogan’s vetoes
• A long-standing overreliance on the Federal government to balance the budget. For more than two decades, economists have warned that Maryland was exceptionally vulnerable to changes in federal spending. Instead of supporting efforts to grow and develop Maryland’s private sector to reduce this dependency, Maryland Democrats continue to pass new taxes and fees that chase them away.

Passing a budget is the only constitutionally-mandated duty of the General Assembly, and this year, it took until Sine Die to pass the $67 billion operating budget. The Operating Budget is made up of two pieces of legislation – the Budget Bill and the Budget Reconciliation and Financing Act (BRFA). The BRFA is the piece of legislation that travels along with the budget bill to make the legislative changes necessary to balance the budget, and is where the plethora of taxes and fees are hidden.

The Democrat Supermajority is touting an income tax cut for two-thirds of Marylanders, which amounts on average to just $60 per person. However, when you look at the overall impact of the new taxes and fees contained in this Budget, every Maryland family and business owner will pay net “Moore”, not net less.  This year’s BRFA included $1.8 BILLION in new and increased taxes, making it the largest tax increase in Maryland’s history.

The biggest losers this year are individual taxpayers and Maryland businesses, as well as local governments that will be absorbing costs that were punted to them by the State. These costs will still be paid by taxpayers – they’ll just be writing that check to their local government instead of the State of Maryland.

This budget did not have to include tax increases. My GOP colleagues and I offered amendments to the budget that would have cut the $1.8 billion needed to eliminate new revenue sources. The cuts proposed by our caucus to get there included:

• A 5% across-the-board spending cut for state agencies
• A state employee hiring freeze and pause in planned cost-of-living salary increases
• Pausing spending increases for the Blueprint for Maryland’s Future
• Rolling back Medicaid eligibility that had been significantly expanded during the COVID-19 pandemic. Currently, a family of four making $100,000 is eligible for Medicaid.

Unfortunately, these proposed cuts and many others were rejected, and Maryland’s families and businesses will pay more.

Below are a few of the major new and increased taxes and fees in the FY26 Budget package.

“Tech Tax”

This year’s budget package creates a new 3% sales tax on a range of data and IT services, including data, information technology, and software publishing, that will touch every Marylander and business owner. Even during the debate on final passage, Democrats still had no details on who or what specific services would be taxed or how the tax will be collected. This new tax alone is projected to bring in nearly $500 million per year.

Maryland businesses are on high alert, and many are considering relocating based on how this new tax will impact their bottom line and competitiveness with vendors from other states. It is ironic that Democrats claim this is a “pro-growth budget” but are taxing the very services and sectors Maryland businesses need to grow and thrive. At the eleventh hour, cybersecurity, intellectual property, and the burgeoning “quantum” industry at the University of Maryland, College Park, received a special carve-out.

It will take time to learn exactly what services are being taxed and how it will impact everyday Marylanders and business owners.  A report from the Comptroller is expected in the coming months.

Income Tax Changes

• Creation of a “half millionaires” tax by establishing two new tax brackets for taxable income between $500,001 and $1,000,000 (6.25%) and $1,000,000+ (6.5%)
• Phasing out itemized deductions for Federal Adjusted Gross Income above $200,000

Local Income Tax

• Enables local jurisdictions to increase the local income tax rate or “piggyback tax” from 3.2% to 3.3%.

Capital Gains

• Establishes a new 2% surcharge on capital gains income over $350,000

Sports Wagering

• Increases sports wagering tax rate from 15% to 20%

Cannabis Tax Rate

• Increases the tax rate on cannabis sales from 9% to 12|%

Vending Machines

• Applies the 6% sales tax to vending machine sales

New Transportation Revenue

• Vehicle Excise Tax: Increase the excise tax on vehicles to 6.8%
• Registration Fees: Accelerates the increases to the annual vehicle registration fees passed during the 2024 session.
• Vehicle Emissions Inspection Fees: Increases the maximum fee from $14 to $30
• Certificates of Title: Doubles fees for new/used vehicles to $200
• New Tire Tax: $5 tax per new tire
• Tire Recycling: $1 per tire recycling fee that will increase automatically with inflation

2025 End-of-Session Wrap-Up – Energy

Other than the budget, Maryland’s energy crisis and skyrocketing electric bills were the dominant issue this session.

Marylanders across the state are facing steep increases in electricity and gas prices, and they want to know why. The culprit is recent legislation passed by Democrats in the General Assembly in the name of climate action and clean energy that is driving up costs for families and businesses.

As they continue to sell these policies as necessary steps toward a greener future, they are ignoring the immediate and painful financial burden of these policies on ratepayers. The state is pursuing an aggressive transition to renewable energy without a realistic plan to manage costs, improve grid reliability, or provide sufficient alternatives for consumers. Instead of balancing environmental concerns with economic common sense, lawmakers pushed an agenda that makes energy more expensive and less reliable.

As the 2025 Session began, lawmakers were inundated with complaints from constituents demanding action to lower their utility bills, and ultimately, there was no magic solution to provide immediate relief.  Democrats did pass a package of three main energy bills, but they fell woefully short in giving real ratepayer relief or making the necessary policy changes to reduce Marylanders’ energy rates. The bills additionally do not give enough confidence to potential investors to seriously look at Maryland as a friendly place to invest in generation infrastructure.

The Next Generation Energy Act (SB 927) was originally proposed as a bill to incentivize in-state generation of electricity, but was amended in to a “Christmas Tree” of a bill with a variety of proposals added on:

• “Legislative Energy Relief Fund” – this is the laughable “rebate” that is actually a return of overpayments already made by Marylanders to fund clean energy policies. The average household will receive $80 over the next year, split into two payments – one in the summer, and one in the winter. This amount is insufficient, as many families are contending with energy bills that are as much as their mortgage.
• Removal of “waste-to-energy” trash incinerators as a renewable energy source
• Creation of a new procurement process for new nuclear energy generation
• Addition of new requirements for utilities to justify spending on new natural gas pipelines
• Created additional requirements for utilities to secure a multi-year rate plan, which allows utilities to set rate increases for several years at one time.

Renewable Energy Certainty Act (SB 931) was problematic for me as it puts in statute the ability for the Public Service Commission to approve large-scale solar projects across the state and override local zoning decisions, putting agricultural land and greenspace at risk. In 2019, A Maryland Supreme Court decision granted the PSC authority to override local zoning decisions when it comes to the zoning and placement of large-scale solar farms. This bill caps solar farms at 5% of Maryland’s total priority preservation area. Even at 5%, the State would have much more land than it needs to achieve its solar goals. I attempted to amend the bill in committee to cap it at 2%, but unfortunately, it failed along party lines. The final amended bill does require tree plantings and maintenance to shield the unappealing visuals of these solar farms.

Energy Resource & Adequacy Planning Act (SB 909) will create a new “Strategic Energy Planning Office” within the Public Service Commission to research and report back on Maryland’s energy needs and grid risks and vulnerabilities to improve the data available for making decisions on energy policy. This could easily be done by outsourcing to a consultant for a fraction of the cost, instead it was stated that it could create up to 24 new government positions

2025 End-of-Session Wrap-Up – Education

The Excellence in Maryland Public Schools Act (SB 429) was the Governor’s bill that made tweaks to the implementation and funding plan for the Blueprint for Maryland’s Future (Kirwan). The Blueprint costs the state $4 billion/year and is the biggest driver of Maryland’s projected budget deficit in the coming years. I appreciated that the Governor recognized that the current trajectory of the Blueprint was unsustainable and was willing to make funding cuts and changes, but would have liked to see him do significantly more to reduce costs and increase flexibility at the local level.

The Governor’s bill was amended in the House, and the final version passed by the Senate was a compromise that does the following:

• Freezes funding for “collaborative time” for three years, but allows the implementation to go forward. Collaborative time refers to the time that teachers spend outside of the classroom for lesson planning and coordinating with other support staff at the school. The current ratio of time spent in the classroom to collaborative time is 80/20. The Blueprint phases in a new ratio of 60/40. Collaborative time is expensive to implement because it requires the hiring of thousands of additional teachers to ensure classrooms are covered.
• Directs $70 million/year to the Consortium on Coordinated Community Supports – the part of the Blueprint that deals with mental health, behavioral health and other wraparound services. The Governor’s original bill had cut this funding to $40 million/year.
• Preserved funding formula for “community schools” – schools that receive Concentration of Poverty grants to provide additional services such as academic support, health and mental health services, and family engagement activities. ​

The Blueprint continues to be an enormous financial concern as implementation continues, driving deficits at both the state and local levels. This year, my GOP colleagues and I proposed a number of measures to bring down costs and increase flexibility, including a pause in additional Blueprint funding and eliminating the increase of collaborative time, holding the current standard at the 80/20 ratio. Unfortunately, those proposals were defeated, however, conversations about the costs of the Blueprint will undoubtedly be front and center as we look ahead to 2026.