The National Federation of Independent Business (NFIB), Maryland’s leading small business advocacy organization, issued the following statement from NFIB Maryland State Director Mike O’Halloran on the end of the Maryland General Assembly legislative session:

“While the General Assembly did not pass large tax and fee increases as it did in 2025, lawmakers did miss an opportunity to provide meaningful relief for Maryland’s small businesses. Main Street is breathing a sigh of relief that a $25 minimum wage and a dramatic increase to unemployment insurance taxes did not pass, but unfortunately, it has become the norm for small businesses to celebrate a bill not passing rather than legislation that provides real regulatory and tax relief getting across the finish line.

“Next year promises to be an exceptionally tough budget year. Hopefully, the General Assembly will hold the line again on another round of tax increases on Main Street.”

Read NFIB’s 2026 legislative summary here:

The 2026 session of the Maryland General Assembly was shaped by rising costs, budget pressure, and a continued shift toward increased regulation. For NFIB members, the overall impact was not one single sweeping law, but a steady expansion of compliance obligations, local authority, and cost exposure.

At the highest level, lawmakers were dealing with a large state budget deficit ($1.4 billion), persistent energy price concerns, and workforce challenges. In response, the General Assembly passed a mix of targeted relief measures and new regulatory frameworks. While some efforts – such as energy-related legislation (Utility RELIEF Act – HB1532) – aimed to stabilize utility costs, they did not fundamentally reduce long-term expenses. For small businesses, utilities remain a volatile and largely uncontrollable cost.

One of the most important trends from the session was the continued shift from broad-based taxation to more targeted fees and regulatory costs. Rather than large statewide tax increases that were passed last year, policymakers increasingly relied on licensing structures, permit requirements, and industry-specific fees. These mechanisms often fall more heavily on small operators, who lack the scale to absorb or spread costs across multiple locations.

Labor and employment policy also continued to evolve. Lawmakers focused on worker protections, wage-related issues, and classification standards. While many of these policies were framed around fairness and workforce stability, they add complexity and administrative burden for small businesses. Small business owners breathed a sigh of relief when legislators failed to pass a $25 minimum wage (SB886/HB1229) or an increase to the state’s overtime exemption threshold (HB69).

Perhaps the most significant structural shift is the expansion of local authority. Counties and municipalities are increasingly empowered to regulate specific industries through licensing, zoning overlays, and operational restrictions. This creates a patchwork system where requirements can vary significantly from one jurisdiction to another. For small businesses operating in or expanding across multiple counties, this fragmentation increases complexity and risk.

Notably, the session did not produce major small business tax relief or broad deregulation. Instead, the trajectory remains toward a more regulated environment with incremental increases in cost and oversight. Larger companies are generally better positioned to navigate these changes due to greater resources and operational flexibility, while small and independent businesses face tighter margins and fewer buffers.

Overall, the 2026 legislative session reinforced an existing trend rather than creating a new one: a gradual but meaningful increase in regulatory complexity, cost pressure, and local variability. For small businesses, success will increasingly depend on the ability to anticipate, track, and adapt to these changes. NFIB will continue to promote its members’ right to own and operate their businesses without undue and costly government regulations.