State Hiring Freeze To Start In July As Maryland Seeks $121M In Additional Personnel Cost Reductions

By WBAL TV
Posted on 06/24/25 | News Source: WBAL TV

Maryland plans to implement a hiring freeze next month as state officials examine options to cut costs.

The governor's office outlined in an email sent to state workers on Tuesday the state's efforts. Gov. Wes Moore said a state hiring freeze will take effect on July 1.

This comes as state leaders are working to find "cost savings and enhanced efficiency" without personnel reductions, such as consolidating facilities.

"As a critical means to achieve that end, the budget requires the executive branch to make $121 million in General Fund personnel cost reductions in fiscal year 2026," Moore said in the email that was sent from the Maryland Department of Budget and Management.

Changes to state workforce to find cost reductions

The governor's email detailed how the state plans to launch a voluntary separation program, details of which will be announced in the coming weeks. Additionally, the state is working to assess options to eliminate vacant positions.

The governor's message said the state is working with unions to minimize impact on current employees.

What led to this point

The governor called current circumstances "unprecedented times," citing an historic fiscal challenge unseen since the Great Recession and federal cuts that impact Maryland.

The governor pointed to an FY2026 state budget signed during this year's legislative session that targeted more than $2 billion in cuts and spending actions, in addition to changes to taxes and fees.

Republicans: Actions may come as 'too little, too late'

Maryland House Republican leaders issued statements Tuesday afternoon as follows.

House Minority Leader Jason Buckel, R-District 1B, said in a statement: "It is good to see the governor is finally facing the realities of our state budget crisis and addressing them in a serious way. Our caucus called on the governor to put a hold on state hiring months ago, and we offered a budget amendment in March that would include a hiring freeze. The level of government employee growth under this administration is unaffordable and unsustainable. I am glad they finally realized it."

House Minority Whip Jesse Pippy, R-District 4, said in a statement: "I wish Gov. Moore had taken this step sooner. I worry that, given the mass hiring his administration has championed, this may end up being too little, too late. We do not want to see furloughs and layoffs like we did in the O'Malley administration, but if we do not get our fiscal house in order, that is where we will end up."

The Republican leadership cited March data from the Maryland Department of Legislative Services that indicated the Moore administration filled about 4,200 positions between January 2023 and January 2025, with more than 3,000 of the positions being created during that period.