Overview

• Maryland’s credit rating was downgraded by Moody’s to Aa1 with a stable outlook, increasing borrowing costs for the state.
• The downgrade follows the state legislature’s resolution of a $3 billion budget deficit through spending cuts, tax increases, and Rainy Day Fund preservation.
• Moody’s cited Maryland’s reliance on federal funding and its exposure to federal job cuts as key vulnerabilities in its economy.
• Gov. Wes Moore attributed the downgrade to federal policies under the Trump administration, while others pointed to the costs of the Blueprint for Maryland’s Future education plan.
• The downgrade aligns with similar recent action on Washington, D.C.’s credit rating, reflecting broader regional economic pressures linked to federal spending cuts.