Report Highlights Federal Employees’ Contributions to Maryland Economy

A new report from the Comptroller of Maryland finds the federal government is “an economic engine for the state of Maryland, and a driver of the state’s employment growth.”

Produced with the University of Maryland Robert H. Smith School of Business, the report provides a quantitative analysis of how the federal government impacts the economy of Maryland, which is home to 14 major military installations and more than 60 federal agency offices.

As the analysis notes, Maryland has the third-highest number of federal jobs in the nation, representing 6% of the state’s overall employment and 10% of its overall wages. According to the report, Maryland federal employee wage income for tax year 2023, federal fiscal year 2024 was $26.9 billion. Federal employee retirement income for that span was $8.8 billion. Other key findings include:

• An estimated 229,000 Maryland residents are employed by the federal government and work in either Maryland, Washington, D.C. or Virginia. These employees are represented in the defense and non-defense civilian workforce (not including active-duty service members).
• About 153,000 Maryland households receive $8.8 billion in federal retirement income annually.
• Maryland is home to 50% of all jobs under the Department of Health and Human Services.

According to a press release highlighting some of the report’s key findings, a second analysis will be shared later this summer, and will examine the consequences of current and potential federal spending and employment reductions by the Trump administration. The second report will be accompanied by an interactive tool enabling users to model the potential effects of additional cuts on Maryland communities, according to the Comptroller.

“We are excited to partner with the Comptroller, enabling our outstanding faculty and students to analyze extensive data on federal spending impacts at the state and county levels,” Robert H. Smith School of Business Dean Prabhudev Konana said in a statement.

“These insights and the digital interface will significantly inform policy decisions, supporting the critical work of the Comptroller’s Office and other local agencies.”