On April 13, the 449th session of Maryland’s General Assembly came to a close. Lawmakers passed a state budget that includes changes to the Developmental Disabilities Administration (DDA). These changes will affect people with disabilities, the services they rely on, and the providers who support them.
At the same time, the session brought meaningful legislative wins for the disability community and for housing across Maryland.
Every legislative session brings unique challenges—and this year was no exception. But it also served as a powerful reminder that advocacy matters. When people speak up, it moves our entire community forward.
Operating Budget Cuts to DDA
The final budget includes significant reductions to DDA funding. These cuts will affect services and supports across Maryland.
A total of $126.9 million ($253.8 million with matching federal funds) was cut from the DDA, including:
- $62.2 million in cuts to community providers
- $64.7 million in cuts to self-directed services
Additionally, $72 million was included in a supplemental budget to address a deficit in Fiscal Year 2026.
Cost Containment Measures
To manage costs, the state implemented changes affecting both community providers and self-directed services.
Community Providers
- A dedicated hours policy will be enforced.
- Community service rates for providers and coordinators will be reduced by 2%.
- Personal and other support services will be capped at 102% of fully loaded “brick” rates.
Self-Directed Services
- Wages for non-family staff were adjusted.
- Unlicensed vendors will no longer be approved.
- A weekly hourly cap of 60/40 will apply to family members working as staff.
Additional Budget Provisions
A few other important details from the final budget:
- DDA cannot make additional rate reductions in Fiscal Year 2027 beyond the cost containment measures listed above.
- DDA must submit monthly reports to budget committees on how these changes are implemented and their impact.
- The Maryland Department of Health will evaluate a proposed rate increase for Coordination of Community Services (CCS).
- Language was included to ensure that people receiving State-only funded services will continue to receive them.
Legislative Victories
Alongside the budget measures, several bills were signed into law that strengthen protections for people with disabilities and create new housing opportunities.
Disability Rights
SB 721 / HB 1015 – Ralph’s Act
Creates a faster, clearer path for people with disabilities who move to Maryland after losing a parent or primary caregiver to access DDA services, including crisis support if eligible.
SB 742 / HB 1445 – Maryland Protecting People With Disabilities Act
Helps ensure that people with disabilities do not lose Medicaid or waiver services due to administrative errors. The law requires agencies to follow federal eligibility timelines, prevents improper terminations, and restores coverage when services are wrongly ended.
SB 22 / HB 226 – Department of Disabilities – Housing Programs and Affiliated Foundations – Establishment
Authorizes the Maryland Department of Disabilities (MDOD) to develop affordable and accessible housing programs for people with disabilities and to establish affiliated nonprofit foundations to support these efforts.
Housing
SB 325 / HB 548 – Maryland Housing Certainty Act
Gives approved housing projects five years of protection and sets clear timelines for local government review.
SB 389 / HB 894 – Maryland Transit and Housing Opportunity Act
Allows development on more than 300 acres of State-owned land near transit hubs, supporting approximately 7,000 new housing units and generating an estimated $1.4 billion in State and local tax revenue.
Capital Budget: Easton Crossing
Fello is honored to have been awarded $2.5 million in the Governor’s capital budget to support the Easton Crossing development in Easton, MD—an investment that helps expand inclusive housing options in the region.
Reflecting and Looking Ahead
At the close of the 2026 legislative session, we are balancing real challenges with meaningful progress.
DDA budget cuts are real, and their impact will be felt by people with disabilities, their families, and the providers who support them. Still, advocacy made a difference.
Meanwhile, there are real reasons for optimism. New laws will strengthen protections, expand housing, and make it easier for people with disabilities to access the services they need.
“This session showed that progress isn’t always linear,” said Jonathon Rondeau, President & CEO of Fello. “While these budget cuts will have real impacts on people with disabilities, our community’s advocacy made a difference, and we’ll keep pushing forward to expand opportunity and support for Marylanders with disabilities.”
Fello will continue working alongside the disability community to protect funding, advance inclusive policies, and build a Maryland where everyone can live, work, and belong.
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