Maryland Faces Billions in Potential Payouts for Child Sex Abuse Claims, No Funds Allocated

ANNAPOLIS, Md. (WBFF) — Maryland lawmakers are grappling with the looming financial implications of thousands of child sexual abuse claims filed under the 2023 Child Victims Act, with current estimates reaching up to $4.9 billion. Despite the significant potential liability, the state has not allocated any dedicated funding to cover these payouts, raising concerns that taxpayers will ultimately bear the cost.

Thousands of Claims Filed

The Maryland Child Victims Act, enacted in 2023, removed the statute of limitations for many civil lawsuits related to child sexual abuse involving state agencies, religious institutions, and private organizations. Since then, a surge of claims has been filed. As of March 19, 2026, Maryland Attorney General Anthony Brown’s office has confirmed 12,305 claims have been asserted against the state government.

Potential Financial Burden

If each claim were settled at the current statutory cap of $400,000, the total cost to taxpayers could exceed $4.9 billion. This estimate does not include potential payouts for higher-value claims or federal cases, which are not subject to the same cap. One federal lawsuit filed in 2025 against the Department of Juvenile Services seeks $300 million in damages on behalf of three plaintiffs, illustrating the potential scale of individual settlements.

Legislative Action and Budget Concerns

Maryland lawmakers reduced the statutory cap on state claims from $890,000 to $400,000 for claims made after May 31, 2025, and shifted to a “per person” limit in an attempt to mitigate taxpayer exposure. However, during a recent Senate debate over the proposed $70.8 billion budget for fiscal year 2027, it was revealed that no funds have been earmarked to address these claims.

Senate Budget and Taxation Chair Guy Guzzone, D-Howard County, stated, “There is no money in the budget for that this year.” Lawmakers acknowledge the uncertainty surrounding the total financial risk, with Senate President Bill Ferguson, D-Baltimore City, noting, “We don’t grasp how much money it is, and don’t have a good way of projecting what could be the ultimate outcome.”

Impact on Taxpayers

With Maryland facing projected budget deficits, including $4.1 billion by 2029, there are growing concerns that taxpayers will ultimately foot the bill through future tax or fee increases. House Minority Whip Justin Ready, R-Carroll and Frederick counties, emphasized, “There is no money set aside right now… It’s all going to arrive from the taxpayers.”

Legal Precedents and Ongoing Debate

The Maryland Supreme Court upheld the constitutionality of the Child Victims Act in a 4-3 decision, allowing claims to proceed. Similar legislation in other states, such as Fresh Jersey, has resulted in significant jury verdicts, including a $25 million award in March 2024.

The Child Victims Act remains a subject of intense debate, with supporters arguing it provides justice for survivors and critics warning of the financial consequences for public institutions and taxpayers.