Gov. Wes Moore is proposing a small cut to the Maryland Department of Health in an attempt to keep the state’s looming deficit under control.

Maryland is likely facing a nearly $3 billion deficit for fiscal 2026 and MDH makes up the largest slice of the pie for the state’s budget.

Moore proposed a $21.5 billion budget for MDH for 2026, a 1.3% decrease, according to budget analysts who testified before the General Assembly on Thursday.

The largest cut in the budget comes from a $12 million decrease to local health departments across the state.

Payments to providers for Medicaid, behavioral health and Developmental Disability Administration reimbursements make up a vast majority of the MDH budget.

However, Moore’s administration is planning on increasing funding for mental health and substance use disorder programs to more than $1.4 billion. The state is also planning on using about $71 million to provide health coverage for non-citizen pregnant women in the state.

MDH will also increase its funding for vaccines for uninsured people by nearly $3 million.

Moore’s total budget for 2026 is about $67.3 billion, the budget reduces the budget by $2.25 billion and puts the state in the black when new revenue is factored in.