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Understanding Maryland’s Proposed DDA Budget Cuts: What You Need to Know

January 23, 2026

Governor Moore recently released his FY2027 budget proposal, which includes significant changes to the Developmental Disabilities Administration’s (DDA) budget.  

Here’s a breakdown of what’s being proposed—and what it could mean for people with disabilities across Maryland.  

The Big Picture 

The FY2027 budget proposal includes a $150 million cut in state funding (which is about $300 million in total when federal matching funds are included). Even with the cuts, the DDA’s overall budget will still grow by 8%.  

This is because FY2026 costs were higher than originally budgeted, and those higher costs are carried into FY2027. In other words, the FY2027 budget starts from a higher baseline than expected, which is why the overall budget is growing despite specific funding cuts. Good news: Despite a current $300 million state budget deficit, the administration has stated it will not reduce DDA funding in FY2026.  

Three Things to Watch 

Fello is closely watching several proposed changes that could directly affect people who rely on DDA services and the providers who support them.  

There are three main changes that have been proposed, including stricter rules for one-to-one staffing, new budget caps, and changes to Self-Directed Services. 

1. Stricter Rules for One-to-One Staffing (Dedicated Hours) 

What’s changing: The DDA would more strictly enforce existing rules that limit when a person can receive one-to-one (dedicated) staff support instead of shared staffing.  

Who’s affected: About 3,800 people with disabilities and over 200 community providers. 

What this could mean: 

  • Providers would be required to complete additional training on how the rules are applied.  
  • Increased oversight of how dedicated staffing hours are approved and used. Ongoing concern about whether people with higher or more complex support needs will get the level of staffing they require. 

Estimated Budget Impact:

  • $54.2 million in savings for the State of Maryland 
  • $108.4 million total with federal matching funds. 

2. New Budget Cap Per Person 

What’s changing: The proposal would set a new $500,000 annual limit on how much the state can spend on services for any one person receiving DDA supports. 

Who’s affected: About 1,600 people currently have budgets at or above this amount, with 824 already spending $500,000 or more. 

What this could mean: 

  • An exceptions process will be created for people who need more support. 
  • This change would require state approval and a public comment period (expected in March). 

Estimated budget impact: 

  • $33 million in savings for the State of Maryland 
  • $66 million total with the federal matching funds 

3. Changes to Self-Directed Services 

What’s changing: 

  • Wages for employees of Self-Directed Services participants would be set using standard labor data, instead of individually determined rates. 
  • The current wage exception process would be eliminated so that all employees make wages aligned with the defined customary and reasonable rates. 

Who’s affected: About 4,000 people using Self-Directed Services and their 10,000+ employees. 

What this could mean: Self-Directed Services employees will be paid wages that are more like what employees with similar job roles and responsibilities as employees at community providers are paid. 

Estimated budget impact:  

  • $62 million in savings to the State of Maryland 
  • $124 million total, including federal matching funds

What Happens Next 

The Governor’s proposed budget will be reviewed by the General Assembly during the legislative session. Lawmakers may accept, change, or reject different parts of the proposal before a final budget is approved.  

Several of the proposed changes, especially the new budget cap and updates to Self-Directed Services, would require additional state approval and public input before they could take effect. 

Fello is working closely with the Maryland Association of Community Services (MACS), other advocacy groups, the DDA, the Governor’s Office, and legislators to better understand how these proposals would be implemented and who would be affected.  

Fello’s leadership is particularly focused on the impact these changes will have on:

  • young adults transitioning to services 
  • people on the DDA waiting list 
  • People with more complex support needs 

More information will become available as the budget process continues through the legislative session. 

Join Us in Advocacy  

As we head into the 2026 legislative session, consider joining our efforts. Whether it’s contacting your representatives, attending advocacy events, or staying informed, your involvement matters.  

Together, we can continue to push for policies that make a meaningful difference for people with disabilities and their families.  

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