Maryland faces a cash shortfall of $1.4 billion in fiscal year 2027, driven by economic fallout from the Trump administration’s policy decisions, unanticipated spending on entitlement programs like Medicaid and lower-than-expected revenue, according to budget projections released on Wednesday.

The depth of the budget hole came as a surprise to state leaders, who raised taxes and fees by $1.6 billion and cut about $2 billion from the state budget this year to avoid grappling with a deficit next year ahead of the 2026 midterm elections.

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