Did Maryland cancel its DDA rate and wage cuts?

No. On June 30, 2026, the Developmental Disabilities Administration delayed them. Provider rates and allowable self-directed wages stay at June 30, 2026 levels until CMS approves the state's waiver amendment, which was submitted July 1.

What cuts are pending in Maryland?

The fiscal 2027 budget measures include a 2% rate cut for community providers, a 2% cut to targeted case management rates, self-directed wage limits based on Bureau of Labor Statistics data, and a 60/40 cap on paid hours for relatives and guardians.

When could the Maryland cuts take effect?

Only after CMS approval. The amendment lists a proposed effective date of Oct. 1, 2026, and the new self-directed budget method is set for Jan. 1, 2027. CMS has 90 days to review from the July 1 submission.

Maryland delays DDA rate and wage cuts pending CMS

Maryland's DDA on June 30, 2026, froze provider rates and self-directed wages at June 30 levels until CMS approves its waiver amendment. The cuts had been set for July 1.

Direct Support News desk · July 2, 2026 · Updated October 8, 2026 · 3 min read

Update, Oct. 8, 2026: On Oct. 1, Maryland said CMS had asked for more information on Sept. 25, extending the hold. See Maryland: CMS info request extends hold on DDA cuts.

Maryland postponed cuts to developmental disability provider rates and self-directed wages that were set to start July 1, 2026. On June 30, the state's Developmental Disabilities Administration said provider rates and allowable self-directed wages will stay at June 30, 2026 levels until the Centers for Medicare & Medicaid Services approves its waiver amendment.

The administration told participants and providers of the delay in messages on June 29 and June 30 and posted the details on its Community Pathways Waiver amendment page. It sent the amendment to CMS on July 1. Maryland Matters first reported on July 2 how the last-minute change landed on families and agencies that had already warned staff of pay cuts.

What was delayed

For the Community Provider-Managed model, the state says, "the implementation of the rate reduction has been extended. Provider rates will remain at the June 30, 2026 levels until CMS approves the waiver amendment."

For the Self-Directed Services model, new "reasonable and customary" wage standards are on hold. Participants can freeze their workers' wages at June 30, 2026 levels, and allowable wages stay at those levels until CMS approves the amendment.

The amendment itself now lists a proposed effective date of Oct. 1, 2026, moved from Sept. 1. The new method for setting self-directed budgets was pushed to Jan. 1, 2027, after public comment. Disability Rights Maryland said the state's plan to pay financial management and counseling costs directly was also moved to Jan. 1, 2027. The administration says CMS has 90 days to review the amendment and that changes take effect only after approval.

What the cuts are

The measures come from Maryland's fiscal 2027 budget. The administration's June 2026 budget FAQ lists them, including:

a 2% rate reduction for community providers, and a cut in the funding level for certain support services from 104% of the actuarial rate to 102%
a 2% cut to targeted case management rates
self-directed wage limits tied to Bureau of Labor Statistics wage standards for Maryland, and an end to the process that let participants request wages above the maximum
a "60/40" rule capping paid hours for relatives, guardians and legally responsible people at 40 hours a week per person and 60 hours per participant
a requirement that unlicensed vendors in self-direction become DDA-certified providers, with the deadline extended to Aug. 15, 2026

The FAQ says DDA service costs have grown by more than $920 million in state general funds, about 144%, over five years, while enrollment in the Community Pathways waiver stayed about level. Maryland Matters reported the measures as part of a $126 million cut in state funds to the administration, which runs the waiver serving about 19,000 Marylanders. The administration's FAQ puts expected savings from cost containment at about $104 million as of July 1, 2026. The two figures come from different points in the process and are not directly comparable.

The delay is not a repeal

The state has not dropped the cuts. It has moved their start to whenever CMS approves the amendment. The administration says it will hold regional listening sessions and webinars on what changes when. Maryland Matters reported that the delay could mean smaller savings than the budget assumed.

Where things stand

As of Sept. 26, 2026, the administration's amendment page still said rates and wages remain at June 30 levels pending CMS approval, and it had not posted a CMS decision. The 90-day review window that began July 1 runs to about the end of September.

Why this matters for providers and DSPs

Agencies can keep billing at June 30 rates for now, but they should plan for the 2% cut and the other changes to arrive with little notice once CMS acts. Self-directing families can hold workers' pay at June 30 levels in the meantime and should check with their financial management and counseling provider before changing wages. For DSPs, pay that was set to fall on July 1 is protected only until CMS approves the amendment.