ANNAPOLIS, Md. — The governor’s office announced earlier this week that it would implement a hiring freeze on new positions and offer buyout packages for retiring employees. The state aims to cut $121 million from the personnel budget to close the gaps in the 2026 budget that Gov. Wes Moore signed into law in May. The freeze will likely be in effect through July 2026, when the next fiscal year begins.
In a letter shared with state employees, Moore wrote, “We are moving with care and intentionality to minimize impact on current employees and be transparent throughout the process.”
The plan excludes the University of Maryland, which has already made its own cuts in light of federal funding uncertainty. “24/7” prisons, hospitals and juvenile facilities are also exempt, as are sworn state troopers, according to Chief of Staff Fagan Harris.
Layoffs are not currently part of the plan to address what the governor calls a “historic fiscal challenge.” The budget passed in 2026 included tax increases of more than $1.6 billion in new tax and fee revenue, mostly from a 3% tech tax and a 0.5% increase on income tax for those earning between $500,001 and $1 million annually.
The announcement comes on the heels of a program to fast-track laid-off federal employees into new roles in the state or other agencies.
Edith J. Patterson of District 28, representing Charles County, said it’s “unfortunate to have a freeze at the state level, but it does not impact the recruiting of federal workers laid off under the Trump administration.” Patterson said that this freeze did not dismantle that program, but is prioritizing bringing eligible federal workers into the state workforce, which is “good for us in Southern Maryland.”
Southern Maryland doesn’t have the same concentration of state-employed workers as northern counties, like Anne Arundel, Howard or Montgomery. Most of the state job openings in the southern counties are in health care or public services — though most aren’t in the “24/7” category Harris said was exempt, and many aren’t unionized.
A hiring freeze would undoubtedly strain public health and services in critical areas like addiction services, family services and health clinics, which already face nationwide shortages. Recent graduates addressing an uncertain job market will also be looking at limited prospects for roles in social services, where state and local governments typically hire more than in the private sector.
Delegate Patterson added that there are still programs that are considered critical for the state, such as healthcare and workforce certification, though it’s unclear how those roles will be protected outside of the “24/7” criteria.
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