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Maryland

Maryland, like all states, has a unique early childhood policy landscape that is shaped by economics, demographics, political history, coalitions, and other factors that create a state-specific environment for policy advocacy.

State early childhood policy progress is dependent both on the state’s environment and the numerous efforts—by the organizations listed on this page, other organizations, parents, policymakers, practitioners, and more—who work both independently and collaboratively to achieve wins for young children.

2025 State Early Childhood Policy Environment and Progress

Early Childhood Landscape:

Research shows that family economic security is foundational to children’s overall wellbeing. Research also shows that widespread disparities in opportunity (especially by race) drive wide disparities in outcomes. States with policies that offer strong support to young children and their families are more likely to see 1) declining numbers of children in low-income households and 2) low racial disparity among those children. 

Young Children in Low-Income Households: Declining

Approximately 30 percent (188,000) of the state’s children 0-8 live in households below 200% FPL (2022). This number represents a decrease from 31 percent (199,000) in 2017.1

Racial Disparity Among Young Children Living in Low-Income Households: High

Black, Hispanic/Latino, and/or Native children aged 0-8 are significantly more likely to be living in households below 200% FPL than are Asian and non-Hispanic White children.2

(NOTE: Selecting for age 0-8, state, and race can yield small cell sizes that can make percentages less accurate. Bars marked with S indicate data with extremely small cell sizes, which is not displayed. Bars marked with C should be interpreted with caution. Though the cell sizes are larger, they still fall below a threshold of reliability.)

Advocacy Landscape:

State General Fund Appropriations: Declining 

In May of 2025, Maryland’s governor approved the state’s fiscal 2026 budget and separate legislation, the Budget Reconciliation and Financing Act of 2025. The budget provides $67.0 billion in all funds appropriations, an increase of $423.4 million, or 0.6 percent, from the fiscal 2025 budget. The budget includes $26.9 billion in general fund appropriations, a decrease of $391.7 million, or 1.4 percent, compared to the fiscal 2025 budget. The March 2025 revenue forecast estimates general fund revenues of $25.4 billion in fiscal 2026, an increase of 0.95 percent over the revised fiscal 2025 estimate. Final legislative action on the budget leaves a general fund cash balance of $321.5 million in fiscal 2026 and an estimated balance of $2.1 billion is projected for the Rainy Day Fund.3

Key Revenue Sources (after federal transfers):4

      • Individual Income Taxes ($3,183 per capita)
      • Property Taxes ($1,870 per capita)

Maryland uses all major state and local taxes.

State Budget Rules:4

Maryland uses an annual budget. The legislature must pass a balanced budget, but it can carry a deficit over into the following year. While the General Assembly recommends a spending limit to the governor, there are no enforced tax and expenditure limits. There are, however, limits on total authorized debt and debt service incurred by the state.
Permanent State Funding Stream Dedicated to Early Childhood: Yes

Maryland collects gambling fees that go into the Maryland Education Trust Fund. These funds are used to support prekindergarten programs as well as K–12 systems.5

Political Alignment: Aligned Democratic

During the 2025 session, the state’s Senate and House were both Democrat controlled. The state’s Governor was also a Democrat.6

Types of Ballot Measures Available:  Three

    • Legislature-initiated state statute – Appears on a state’s ballot as a ballot measure because the state legislature in that state voted to put it before the voters.
    • Legislature-initiated constitutional amendment – A constitutional amendment that appears on a state’s ballot as a ballot measure because the state legislature in that state voted to put it before the voters.
    • Veto referendum – When the citizens of Maryland disagree with a statute or legislative bill enacted by the state legislature, they can collect signatures to force the issue to a vote. If enough signatures are collected, the bill is placed on the statewide ballot.7

Key State Policy Advocacy Organizations Include:

Early Childhood Policy Advocacy Multi-State Initiatives Include:6

2025 Policy Progress:

Highlights from the state’s early childhood policy advocacy community include:9

Passed by the General Assembly and signed into law by the Governor, HB 785 ensures family child care is considered a residential and a permitted activity. Steps cannot be taken to limit the number of children in care below the number authorized by the State’s Office of Child Care and access to common elements of the community may not be restricted. In testimony before the Committee, the State Department of Education predicted, “The bill may result in a potential increase in family child care homes, which will provide more options for families seeking child care.” Alliance grantee Maryland Family Network has undertaken a concerted effort to increase and sustain the supply of family child care in recent years, primarily through our Growing Opportunities for Family Child Care Program (Go FCC). In just 25 months, the Program has opened 198 new businesses  and added 1,375 child care slots across 19 jurisdictions. This includes 312 slots specifically for  infants and toddlers. Some potential Go FCC participants did not fully complete the licensing pathway due to restrictions put in place by their communities. 

Passed by the General Assembly and signed into law by the Governor, HB 389 reforms the property tax credits that counties are authorized to offer child care programs and allows a credit for child care providers’ real property (buildings and land). It also allows a similar credit for businesses that create on-site space for child care. Four counties in Maryland currently offer one of both of the credits. The bill raises the maximum allowed property tax credit for child care providers from $3,000 to $10,000. 

A proposal to expand statewide a universal newborn nurse home visiting program was amended to establish a workgroup that will assess Maryland’s home visiting landscape, identify gaps, and funding sources. Alliance grantee Maryland Family Network will play a key role in staffing the workgroup.

HB 185 reestablishes a mandated appropriation for the Therapeutic Child Care Grant  Program (TCCP), administered by the Maryland State Department of Education (MSDE). As a result, the Governor must include a $3.7 million appropriation for the program in the annual  budget bill from fiscal 2027 through 2029. The purpose of the program is to provide grants  to providers that specialize in providing child care and early childhood education to  children younger than age six who have developmental delays; physical disabilities; or delays in social, emotional, or behavioral functioning.

HB 859 promotes access to health insurance for child care professionals. This bill requires the Maryland Health Benefit Exchange (MHBE) to promote access to  health insurance for child care professionals by (1) partnering with the Maryland State  Department of Education (MSDE), prekindergarten provider hubs, child care associations,  and relevant nonprofit organizations; (2) helping child care professionals obtain health  insurance though MHBE or Medicaid; (3) assisting child care professionals who lose Medicaid coverage with finding alternative health insurance options. 

HB 881 will enable child support payments to pass directly to the child, rather than to the State, and for those payments to be disregarded when a custodial parent’s eligibility for benefits is determined. The child support pass-through and disregard will be phased-in starting in Fiscal Year 2028.

HB 1083 requires Maryland’s Department of Health (MDH) to convene a workgroup including early childhood behavioral health experts to ensure the behavioral health  benefits covered by Medicaid (Early and Periodic Screening, Diagnostic, and Treatment- EPSDT)  meet the needs of all of Maryland’s children including young children. Currently in Maryland, early child behavioral health clinicians cannot bill for behavioral health services unless that child has a diagnosis. There are many states that allow behavioral health providers to bill for codes related to Social Determinants of Health including housing instability, food insecurity, and many issues that families living in poverty face. 

HB 1121 aims to improve foster youth access to child care scholarships as a part of the Successful Adult Program. The bill’s sponsor testified, “HB 1121 would establish a three-year pilot program to help remove these barriers for foster youth parents by simplifying the application process. It eliminates the need for non-custodial parent signatures and removes the requirement for proof of employment or enrollment in educational or job-training programs. These requirements often create emotional and logistical burdens, preventing young parents from pursuing meaningful opportunities. By removing these obstacles, the program would encourage parenting foster youth to seek career opportunities or education without the fear of childcare issues. Ultimately, these changes would likely increase program participation and support foster youth in successfully transitioning to independent adulthood while raising their children.” 

Ongoing Grantee Areas of Advocacy:

Our lead ally in Maryland, Maryland Family Network (MFN), is a voice in Annapolis and Washington, D.C. making sure that the needs of young children and their families are a priority with lawmakers. They administer the state’s network of Family Support Centers and Child Care Resource Centers.

Maryland Family Network is working to advance early childhood policies in several areas that align with the Alliance’s birth-through-eight policy framework

Early Care and Education

Child Care

Child Care Workforce

Preschool and Pre-K

Child and
Maternal Health

Home Visiting

Welfare Early Intervention 0-3

Family
Supports

Family Economic Security 

Paid Family Leave

Early Childhood Infrastructure

Data Systems

Early Childhood Finance and Cost Modeling

RECENT ADVOCACY SNAPSHOT:

NOTES:

1 Kids Count Data Center, Annie E. Casey Foundation, Children Ages 0 to 8 Below 200 Percent Poverty, January, 2024. 

2 National Center for Children in Poverty, Children Ages 0 through 8 Below 200 Percent Poverty, October 2024, NCCP analysis of ACS 5-Year Estimates – Public Use Microdata Sample 2018-2022.

3 National Association of State Budget Officers, Proposed and Enacted Budgets, FY 2026.

4 Urban Institute, State Fiscal Briefs, April 2025.

5 Alliance for Early Success, State Examples of Dedicated Funding Streams, 2025

6 National Conference of State Legislatures, 2025 State & Legislative Partisan Composition, January 31, 2025.

7 Ballotpedia, Ballot Measures by State, Kids Count Data Center, 2025.

8 Alliance for Early Success, Multi-State Initiatives for Early Childhood Policy Advocacy, July, 2024.

9 Alliance for Early Success, State-Wide Advocacy Highlights Survey, April-October, 2025. 

More State Policy Data:

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More State Child Data:

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