The Prince George General Assembly Committee convened on April 29, 2025, to discuss the state budget and its implications for local residents, particularly in light of recent federal actions. The meeting began with an overview of the budget, which was passed at a total of $67.9 billion. This budget included $1 billion in revenue additions and $2.6 billion in budget cuts, with over $2.4 billion allocated to mitigate the negative impacts of federal actions on Maryland residents.

A significant portion of the budget, approximately $2.1 billion, was set aside for the rainy day fund, while the governor's transportation budget received full funding. The state's support for public schools was highlighted, totaling around $9.8 billion, which included a $594 million increase in direct aid for local schools, marking a 7.3% increase from the previous year.

The committee addressed the challenges posed by federal layoffs, particularly in Prince George's County, which is home to approximately 73,000 federal workers. The state has already seen a loss of over 3,500 public sector jobs, with around 2,700 of those being federal positions. The impact of these layoffs on local revenue was a major concern, especially as more than 3,000 contract employees have received layoff notices.

The meeting also discussed Maryland's financial outlook, with Moody's rating service identifying the state as one of the most at risk, which could threaten its bond rating. The committee noted that less favorable grant policies and a reliance on federal contracting, which constitutes 9% of personal income in Maryland, could further complicate the state's financial situation.

In response to the layoffs, the committee reviewed the Federal Workers Act, which was recently signed into law. This emergency legislation aims to assist those affected by federal job losses by creating a federal grant and emergency loan fund. Eligible residents can apply for interest-free loans of up to $700, with an additional $1.5 million allocated for the attorney general to investigate and address civil or criminal suits related to federal actions.

The discussion included inquiries about the cap on the number of federal employees who could apply for assistance and the duration of the funding, emphasizing the need for a first-come, first-served approach until the funds are depleted.

The meeting concluded with a review of budget spending highlights, underscoring the committee's commitment to addressing the financial challenges facing Maryland residents in the wake of federal actions. The committee plans to continue monitoring the situation closely, particularly in anticipation of a potential special General Assembly session in September, contingent on federal budget developments.