$148.3 Million in Budget Cuts: Maryland Allocates Funds to Child Care and Medicaid Amid Record Demand

The Maryland Board of Public Works led by Governor Wes Moore approved $148.3 million in budget cuts to fund child care and Medicaid amid rising demand.

Maryland Cuts Budget to Fund Child Care and Medicaid Amid Increased Demand

The Maryland Board of Public Works led by Governor Wes Moore approved $148.3 million in spending cuts to balance the budget and direct more funds to child care and Medicaid. Moore said these cuts are necessary for the state’s financial health and long-term economic growth. The board made these cuts due to increased demand for Medicaid and the state’s child care program which are key priorities for Moore’s administration.

Recently, the number of children in Maryland’s child care scholarship program grew from about 24,000 to over 40,000, exceeding the fiscal 2024 budget’s expectations. At the same time and the Maryland Health Department processed over 1.5 million Medicaid renewal applications approving more than 70%, which led to a big increase in Medicaid enrollment. Helene Grady, the governor’s budget chief, said the cuts are meant to reallocate unused funds and delay new spending aiming to make healthcare and child care more affordable and support economic growth, according to the report of Washington Examiner.

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(photo: Maryland Matters)

Maryland Republicans Slam Budget Decision as ‘Fund Transfer

However, Maryland Republicans criticized the board’s decision, calling it a fund transfer rather than real budget cuts. Senate Minority Leader Steve Hershey said the board used budgeting tricks to cover the Medicaid funding gap caused by bad projections. Despite the criticism, Moore and his team are determined to tackle the state’s economic problems and ensure the financial stability of important social programs.

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