This legislative action comes in response to an influx of claims, particularly from youth detention centers, which could result in potential liabilities estimated between $3 billion and $4 billion for the state.

Maryland State Senator Will Smith highlighted that approximately 1,500 cases have already been filed, with another 4,500 claims known, contributing to the overwhelming financial strain.

Senator Justin Ready pointed out the state's existing $3 billion deficit and expressed concerns that the financial impact of settlements could surpass current estimates.

However, the legislation has raised concerns regarding its constitutionality, particularly the provision that limits each claimant to receive only one payment per case.

Among its provisions, the new measure reduces settlement caps significantly, lowering the maximum to $400,000 for state institutions and $700,000 for private institutions for claims filed after May 31, 2025.

The recent $4 billion settlement in California for nearly 7,000 claims of abuse in juvenile facilities underscores the growing financial stakes related to similar issues across the country.

On April 5, 2025, Maryland lawmakers passed a bill aimed at limiting future liabilities from a surge of sexual abuse claims, which have increased significantly since the elimination of the statute of limitations for child sexual abuse claims two years ago.

The bill received bipartisan support, passing the Senate with a 36-7 vote and the House with a 92-40 vote, before being sent to Governor Wes Moore for approval.

Additionally, the bill caps attorneys' fees at 20% for out-of-court settlements and 25% for court settlements, aiming to control the costs associated with these claims.

This bill is part of a broader response to extensive abuse revelations, particularly within the Archdiocese of Baltimore, which led to bankruptcy proceedings following the passage of the 2023 Child Victims Act.

Senator Smith emphasized the need for a settlement as the optimal resolution and expressed hope for negotiations between the attorney general and plaintiffs.

Senator Chris West expressed skepticism about this limitation, suggesting it may not hold up under judicial scrutiny based on previous Maryland Supreme Court rulings.