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A bill meant to regulate so-called 鈥渆arned wage access鈥� loans for the first time in Maryland will become law without the governor鈥檚 signature and over the objections of a聽.
聽is one of a handful of bills that Gov. Wes Moore (D) will allow to become law without his signature, including a measure to clarify provisions of a clean-energy building standard and another to increase oversight of the Department of Information Technology. Moore cited beneficial elements for each bill, but also pointed to provisions that were potentially troublesome, leading him to withhold his signature.
The bills are the last gasp of a month in which the governor signed almost 800 bills from the 2025 General Assembly into law and they come a week after he announced vetoes of 23 measures, including his controversial veto of a bill to create a commission to study possible reparations. Lawmakers are expected to override that veto, if not others.
In Maryland, there is no pocket veto for the governor, who must veto a bill to reject it. Of the left-over bills, the most contentious may have been HB1294, which aims to regulate 鈥渆arned wage access鈥� programs that advance workers money they have earned but have not yet received, then requires them to pay it back with interest.
Critics say the bill as drafted exempts app-based lenders from state laws that 鈥減rohibit lending that is discriminatory, is deceptive, or carries extremely high interest rates.鈥� The Center for Responsible Lending said in a statement that the new law makes it easier for Marylanders to be sucked into 鈥渇inancial quicksand鈥� because of payday loan apps.
鈥淭he bill becoming law but without the governor鈥檚 signature is indicative of serious, widespread concerns about these payday loan apps, including from the governor鈥檚 administration,鈥� said Whitney Barkley, deputy director of state policy and senior policy counsel for the Center for Responsible Lending.
The center was part of a coalition of more than three dozen advocates, including the NAACP Maryland State Conference, that had urged Moore to veto the bill.
Earned wage access programs typically come in two versions 鈥� one offered by employers to their employees and another offered by private companies directly to workers. The loan is typically paid back through automatic deductions, usually with a fee or 鈥渢ip.鈥�
Opponents said the tips are finance charges. Often those charges exceed 300% interest, higher than the state鈥檚 33% limit. They said the new law 鈥渞emoves the best defense against predatory lending鈥� in Maryland.
聽explaining his decision, the governor said early access to earned wages can 鈥減rovide a tangible benefit to workers鈥� with unexpected expenses such as flat tires, medical copays and veterinarian bills.
While he commended lawmakers, including House Economic Matters Chair Del. C.T. Wilson (D-Charles), for 鈥渁dvancing a path on regulating these products,鈥� Moore also acknowledged concerns with the bill.
Roughly 345,000 residents used wage access apps more than 11 million times between 2019 and 2024, in transactions totaling about $108 million. Nearly one in four accessed the service every two weeks, 鈥渟uggesting habitual use,鈥� Moore wrote. About half pay 鈥渆xpedited fees.鈥�
Those who default on the loans tend to be 65 or older, earning less than $50,000 a year and users tend to live 鈥渋n the lowest income communities in the state,鈥� Moore wrote, adding that 鈥減rotections are warranted.鈥�
He called for a cap on amounts that can be borrowed from a single or multiple lenders, and said the law should not exempt lenders from existing commercial financial protection laws. Finally, soliciting a tip for a loan 鈥渋s inappropriate,鈥� Moore wrote.
The governor also took a pass on聽, which would help clarify key provisions of the Building Energy Performance Standards. Some building owners could receive credits, including for generating renewable energy on-site.
The bill was requested by the Department of the Environment, Moore withheld his signature over changes made by the legislature.聽聽explaining his decision, Moore cited 鈥渃onstrained (budget) resources鈥� and 鈥渟ignificant operational challenges鈥� for the department, which must implement the law.
鈥淎nd overall, this bill, as amended by the General Assembly, undermines the Department鈥檚 regulatory flexibility to meet the climate goals set out in the Climate Solutions Now Act,鈥� Moore wrote.
The bill, as requested by the department, was intended to聽聽who must comply with electrification requirements and reach net-zero greenhouse gas emissions by 2040. Failure to do so will result in fees 鈥� some as much as $600,000 for poor performing buildings 鈥� levied by the Maryland Department of the Environment.
But lawmakers amended the bill to exempt hospitals and some manufacturing facilities. Also exempted are emissions associated with steam sterilization and back-up generators at medical facilities, nursing homes and laboratories.
Moore said he is also 鈥渃oncerned with the study requirement included in the bill,鈥� which calls on the department to analyze other potential changes to the BEPS program. The governor said the amended bill 鈥渋ntroduces uncertainty into an already complex regulatory effort 鈥� It is not clear that the expectations of this study can be met by the department, given the fiscal constraints and timeline challenges the law has put in place.鈥�
Moore will also allow聽听补苍诲听聽to become law without his signature.
The identical bills 鈥� sponsored by Del. Anne Kaiser (D-Montgomery) and Sens. Sens. Katie Fry Hester (D-Howard and Montgomery) and Stephen S. Hershey Jr. (R-Upper Shore) 鈥� aim to refocus the Department of Information Technology on major projects and ensure compliance with auditors鈥� recommendations.
The law imposes new oversight and reporting requirements on a department who has come under fire from lawmakers and the聽. One top lawmaker characterized the agency as聽.
A key part of the bill expands and defines the responsibilities of the department secretary on oversight of major IT projects, and it bars the department from contracting for IT services or products that are not consistent with its master plan. The law also requires the department secretary to meet quarterly with the chief information officer of agencies or departments with planned or ongoing IT projects.
It also sets up an expert panel to advise the legislature on IT issues and requires the Senate Budget and Taxation and House Health and Government Operations committees to convene a work group to evaluate the bill and other potential changes. The work group will determine if other actions are needed to resolve issues raised by the auditor.
Moore, in a聽, said he agreed that changes needed to be made to how major information technology projects are overseen. But while the bills are 鈥渨ell-intended,鈥� he said 鈥渕any of its provisions recycle ineffective policies from the past, mirror reforms that are already underway or are overly prescriptive.鈥�
