Maryland Gov. Wes Moore’s proposed fiscal year 2026 budget could face up to an additional $1.5 billion in cuts, Maryland Senate president Bill Ferguson (D-Baltimore City) said in a press conference Friday.

Moore’s proposed budget includes more than $2 billion in cuts as the state grapples with a $3 billion deficit. Ferguson said the additional possible reductions are due to President Donald Trump’s proposed tax cuts, reduced federal funding for Medicaid and removal of federal civil servants.

[National uncertainty, $3 billion deficit headline Wes Moore’s State of State address]

“The reality is it’s worse than we expected,” Ferguson said during the press conference. “We are going to have to have a very sobering conversation about what this budget looks like in the next 30 days.”

U.S. Sen. Chris Van Hollen (D-Maryland) met virtually with Ferguson and other state lawmakers Friday morning to relay Congressional Republicans’ plans about shifting Medicaid cost assessments to states to pay for major tax cuts.

“We are doing everything within our power in the Congress to slow things down and get our Republican colleagues engaged,” Van Hollen told the Baltimore City Delegation on Friday. “They’re just marching to the tune of Elon Musk and Donald Trump.”

[USM could cut 400 jobs as state grapples with $3 billion deficit]

The additional cuts will impact Maryland’s ability to invest in its priorities and advance its economic growth plan, Ferguson explained.

Under Moore’s proposed budget, $111 million would be cut from the University System of Maryland. University system chancellor Jay Perman told state lawmakers last month the proposed cut could lead the system to cut 400 jobs across its higher education institutions.

“We’re looking through each of these programs and making sure we are getting the highest and best value that we can because it’s going to get tighter and tighter,” Ferguson said at Friday’s press conference.

During his annual State of the State address last Wednesday, Moore talked about “two storms” facing Maryland: the state’s budget deficit and the new Trump administration’s actions.

“Easy decisions are off the table,” Moore said during his address. “We only have difficult decisions ahead.”