At an August 11, 2025, hearing before the Maryland General Assembly’s Joint Federal Action Oversight Committee, Comptroller Brooke E. Lierman and Deputy Comptroller for Policy Ben Seigel presented key findings from a June 2025 report examining the role of federal spending and employment in Maryland’s economy prior to the second Trump Administration. 

The report was produced in partnership with the University of Maryland Robert H. Smith School of Business.

Lierman emphasized Maryland’s deep economic ties to the federal government, noting that “Maryland has enjoyed a close, mutually beneficial, and symbiotic relationship with the federal government. We have benefited from a high concentration of jobs and significant investment in the form of contracts, grants to Maryland businesses and nonprofits, and to research that supports our economy.”

According to Lierman, approximately 229,000 Maryland residents were employed by the federal government during the last fiscal year. However, Maryland experienced the largest single-month drop in federal jobs in nearly 30 years, losing about 3,500 positions in June 2025 and 13,000 since January, according to the Maryland Department of Labor.

She cautioned that federal spending in Maryland, which once totaled $150.2 billion, may decline further as a result of policy shifts and federal workforce reductions.

Deputy Comptroller Seigel outlined plans for a follow-up study, also in partnership with the University of Maryland, that will analyze the potential effects of different federal funding scenarios. The report will be accompanied by an interactive tool enabling policymakers and the public to model changes in federal funding and estimate their impact on local budgets and revenue forecasts. The release is anticipated in September.

Additionally, Lierman said the Bureau of Revenue Estimates is preparing a 60-day analysis of how recent changes to the Internal Revenue Code will affect Maryland’s revenues and taxpayers. That report is also expected in early September.

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