Maryland employees offered $20,000 buyout amid statewide hiring freeze

Maryland employees are being offered incentives to resign from their jobs as the state faces a historic fiscal challenge, according to the governor's office. 

The buyout offer, or Voluntary Separation Program, went into effect on July 10, about one week after a statewide hiring freeze was enacted.

Both programs are part of a broader effort to tackle Maryland's $3 billion budget deficit. 

Maryland state employee buyout offer

Under the program, the Moore-Miller administration is offering a lump sum of $20,000, plus another $300 for each year that an employee worked for the state. 

The buyout offer is only available for full-time, permanent state employees in the executive branch who have at least two years of continued service. 

Employees who accept the voluntary buyout would remain on a state health insurance plan for six months after separation and would be paid for unused leave. 

State employees have until midnight on August 4 to apply for the offer. Acceptance is not guaranteed, the governor's office said. 

The final day of employment for those who are approved for the buyout is on September 30, 2025. 

Find more information here. 

Maryland hiring freeze

The buyout was enacted shortly after a statewide hiring freeze went into effect.

In announcing the effort, Gov. Wes Moore said the state's political climate was the worst since the Great Depression. He partly attributed the challenges to "a federal administration that continues to harm Maryland's people and the economy."

Maryland's last hiring freeze was in 2020. 

In addition to the hiring freeze and buyout program, the governor's office also announced it would be eliminating vacant state positions. 

The effort to cut state costs is expected to save nearly $121 million during Fiscal year 2026, according to the administration. 

Higher education and judiciary positions are exempt from the freeze. 

Maryland Republicans share concerns 

The Maryland Senate Republican Caucus said it pushed for similar cost-cutting measures during the 2025 legislative session as state leaders worked to address Maryland's deficit. 

On Friday, they raised concerns about the buyout program, calling it a "short-term fix for a long-term problem."

"This program likely won't do enough," Republican leaders said in a statement. "The incentive is too small to prompt meaningful participation from higher-paid employees – the very group whose departure would deliver the most savings. In many cases, $20,000 is barely two months' salary."

The group of leaders said Gov. Moore should focus on scaling back the size of the state government and embracing fiscal discipline to avoid more workforce reductions or tax hikes.

Maryland's 2026 budget cuts 

Maryland's 2026 budget, which was signed into law in May, includes about $1.8 million in tax and fee increases. It also includes the largest number of cuts to state spending in 18 years.

The $67 billion budget addresses Maryland's $3 billion deficit. 

"We turned a $3 billion inherited deficit into a surplus, while still reserving 8% in the rainy day fund above the recommended levels," Gov. Moore said. "We made over $2 billion in targeted cuts, which was hard, but it's the largest amount of cuts that we've seen from a Maryland budget in 18 years."

On the other hand, nearly 94% of Marylanders will see a tax cut or no change to their state income taxes. The highest earners in the state were separated into new tax brackets.