A new report from Maryland’s comptroller warns that the state faces staggering economic consequences from climate change, with costs already reaching into the tens of billions of dollars from past weather events. The analysis emphasizes that failing to act decisively will amplify these financial burdens, affecting everything from public infrastructure and state budgets to the livelihoods of individual residents. The document frames future spending on climate resilience not as a liability, but as a critical economic necessity to prevent far greater expenses down the road.

The report, the second in the comptroller’s “State Spending Series,” quantifies the escalating price of climate-related disruptions and positions proactive investment as the most fiscally responsible path forward. It reveals that Maryland has already sustained $10 billion to $20 billion in recovery costs from 85 separate extreme weather events over the past four decades. Arguing that these backward-looking figures are only a prelude to future challenges, the analysis concludes that every dollar invested today in resilience and disaster preparedness could prevent an estimated $13 in damages and recovery costs, offering a stark financial incentive for immediate and strategic action.

The High Price of Inaction

The comptroller’s office makes a clear case that inaction is the most expensive option for Maryland. The report details how unchecked climate-related hazards drive up the costs of materials, put severe strain on public health systems, and deplete the state’s vital natural resources. These impacts create a cascade of economic obstacles that hinder growth, including inflated housing prices and sharp increases in insurance premiums for homeowners and businesses alike. The failure to make substantive investments in climate resilience and mitigation measures will only magnify these financial burdens over time, creating a progressively unstable economic environment.

Economic sectors across the state are vulnerable. The report identifies significant risks to agriculture from shifting weather patterns and to tourism, a major economic driver. In Western Maryland, for example, fewer pleasant-weather days directly threaten the region’s $600 million tourism sector. Furthermore, the analysis points to broader consequences like workforce disruptions, interruptions to critical supply chains, and damage to essential infrastructure, all of which translate into direct financial losses for the state and its residents. These are not abstract future threats; they are present-day costs that are already impacting Maryland’s budget and economy.

A History of Costly Disasters

Maryland is no stranger to the destructive power of extreme weather, and the report provides a clear accounting of the financial toll. Between 1980 and 2024, the state endured 85 distinct weather and climate disasters, each leaving a trail of damage that required significant public and private resources to repair. The cumulative recovery costs for these events, as tracked by the National Oceanic and Atmospheric Administration, fall between $10 billion and $20 billion. These expenses covered a wide range of needs, including repairing and replacing damaged property and public infrastructure, compensating for widespread crop loss in the agricultural sector, and absorbing the loss of revenue for businesses forced to close or curtail operations.

This historical data serves as a baseline for understanding the state’s exposure to risk. The events are becoming more frequent and intense, suggesting that the costs incurred over the past 40 years could be dwarfed by the expenses of the coming decades. The report also highlights that safeguarding Maryland from the single threat of chronic flooding could require an estimated $27.4 billion by the year 2040. This figure underscores the scale of the challenge and the need for a financial strategy that moves beyond reactive recovery and toward proactive protection.

Economic Vulnerabilities and Disparities

The report emphasizes that the economic impacts of climate change are not distributed equally. Climate-related events disproportionately harm low-income neighborhoods and communities of color. These communities often have fewer resources to prepare for, evacuate from, or recover from disasters. The financial shock of a severe storm or flood can be devastating for families and small businesses without a deep reserve of capital, leading to displacement and long-term economic hardship. The lack of investment in resilient infrastructure in these areas further exacerbates their vulnerability.

Beyond the direct impacts of disasters, the analysis points to systemic economic strains. These include rising costs for essential resources and the potential loss of critical public services when infrastructure is compromised. As stated by Comptroller Brooke Lierman, the goal is to equip all Marylanders with the information they need to build more resilient neighborhoods and invest in long-term sustainability. The report suggests that effective climate policy must also be effective economic policy, addressing these underlying disparities to ensure that the entire state can withstand and recover from future shocks.

Investing in a Resilient Future

The central argument of the comptroller’s report is that strategic, upfront investment is essential to managing Maryland’s long-term climate costs. The document strongly advocates for a shift in perspective, viewing spending on resilience not as an expense but as a high-return investment. The finding that each dollar spent on preparedness can save $13 in future damages provides a powerful economic rationale for this approach. This calculation includes the avoided costs of rebuilding, the prevention of economic disruption, and the protection of the state’s tax base.

Thoughtful planning and coordination between public agencies and private authorities are presented as key components of a successful strategy. This involves more than simply building stronger sea walls; it requires a comprehensive approach that integrates climate considerations into all aspects of state and local governance. By making smart investments now, the report concludes, Maryland can protect its communities, preserve its environment, and ensure its long-term economic survival in the face of a changing climate. Delaying action, conversely, will only increase the ultimate price tag.

Legislative and Policy Implications

The report lands in a policy environment where state leaders are already grappling with how to finance climate adaptation. During its 2025 session, the Maryland General Assembly passed legislation directing the comptroller’s office, in partnership with the state’s departments of Environment and Commerce, to conduct a comprehensive study assessing the total cost of greenhouse gas emissions in Maryland. This study is intended to quantify the cost-driving effects of emissions and determine the financial burden passed on to taxpayers.

A key aspect of this legislative push is the consideration of making fossil fuel companies share in the financial responsibility for climate damages. Some states have already passed or are considering laws that would require these companies to contribute to adaptation and mitigation funds. The findings of the comptroller’s new study, which are due to legislative committees by December 1, 2026, will provide critical data to inform these policy debates. By formally assessing the costs attributable to greenhouse gas emissions, the state is building a foundation for policies that could reshape how Maryland pays for its climate response.