Well-intentioned though, recent measures targeting housing and artificial intelligence are poised to complicate Maryland’s burgeoning bureaucracy even further.
This week, Governor Wes Moore, a Maryland Democrat, put his signature to more than 270 laws. While public attention centered on crime- and immigration-related bills, several statutes expanding government reach to tackle housing shortages and to weave AI into public schooling slipped by largely unnoticed. Here are five illustrations.
1. The Maryland Housing Certainty Act
Maryland is facing a shortfall of roughly 100,000 housing units. Projections from the Maryland Department of Housing and Community Development indicate that to keep up with a growing population, the state would require about 590,186 additional units by 2045. At first glance, the Maryland Housing Certainty Act seems to address the problem by targeting a principal barrier to construction: the frequently shifting regulations that create uncertainty for builders.
That objective is ambitious, given that Maryland ranks sixth nationwide for housing-regulation intensity, with construction costs about 27 percent above the national average. In the past, approved housing projects could still be altered by changes in local regulations, even after initial consent.
The act would freeze local zoning laws and land-use policies for housing developments, allowing only regulations in effect “at the time of submission” to influence project approval. It also bars the collection of development impact fees and excise taxes until after a project is completed, effectively easing upfront costs for new construction and lowering a barrier to entry for smaller developers.
Unfortunately, the measure appears to counteract its deregulation aims by reinforcing local jurisdictions’ authority to require approvals or permits for each phase of a housing development project.
Maryland issued roughly 3,500 fewer building permits in 2025 than the year before—even as housing officials acknowledged that the current permitting framework raises housing costs and pushes residents to relocate out of state. Rather than removing rules that prolong project timelines, the act ends up trading one layer of control for another.
2. The Maryland Transit and Housing Opportunity Act
In the Maryland Transit and Housing Opportunity Act, lawmakers acknowledge that density caps and parking requirements are common regulatory tools used to curb new housing construction.
The act designates transit-adjacent housing projects as “enterprise zones,” supporting their development with property and income tax credits. It also prohibits land-use restrictions on publicly owned land and prevents local jurisdictions from imposing off-street parking requirements on developments within a quarter-mile of a public transit hub.
However, the bill makes clear that none of its provisions should be understood as restricting a local government’s authority to deny projects on environmental or natural-resources concerns, public health and safety considerations, or adequate public facilities grounds. In other words, developments can still be rejected if a locality deems there is insufficient infrastructure such as schools, roads, water, sewer, and EMS. Meanwhile, the use of tax credits amounts to the government selecting winners and losers based on location, effectively propping up certain housing projects that might otherwise struggle in the market.
3. The Maryland Fair Chance Housing Act
Under the Maryland Fair Chance Housing Act, landlords managing or owning five or more rental units may not require applicants to undergo drug or alcohol testing prior to a conditional offer. They are also prohibited from requesting or requiring consent to disclose information about drug-prevention or treatment programs. If a landlord checks one applicant’s criminal history, they must apply the same scrutiny to every prospective tenant.
Leases remain voluntary arrangements. The measure intrudes on private landowners’ discretion in favor of government mandation. The added paperwork, including mandatory assessments and periodic re-evaluations, could translate into legal expenses or lost rental income while units sit vacant. At the same time, a $500 per violation fine creates a potential financial trap for property owners who inadvertently run afoul of the new rules.
4. Artificial Intelligence Ready Schools Act
When it comes to AI, Maryland’s policy approach aims to “do no harm” first. For lawmakers, that tendency often translates into more regulation.
The Artificial Intelligence Ready Schools Act establishes statewide AI guidance and governance structures for K–12 education. It requires the Maryland State Department of Education to provide guidance to local school systems, educators, parents, and students on which AI tools are acceptable for use, as well as a rubric for evaluating AI tools employed by teachers.
The bill also introduces a host of new administrative duties for schools, including designating AI coordinators, additional reporting requirements, guidance systems, training programs, and procurement frameworks—adding to the administrative layer that already consumes a large portion of Maryland’s school funding.
5. Maryland Artificial Intelligence Partnership
Maryland’s initiative to regulate AI includes creating an Artificial Intelligence Partnership with the state’s university system. While the bill intends to foster AI innovation and integration across public institutions, it does so by establishing a new regulatory office with a director, partnership hubs, sub-cabinets, fellowships, annual reports, and planning structures.
By favoring government-backed innovation hubs over a decentralized market-driven approach that rewards entrepreneurship, the legislation steers resources—capital and labor—toward preferred projects. Requiring technology development to align with the government’s framework could slow innovation in a fast-moving field like AI.
Maryland’s path to growth begins with deregulation. Unfortunately, progress may be slowed as the state continues to incrementally expand the administrative state unless lawmakers curb their appetite for regulatory expansion.