Proposed bill would tax sugary drinks in Maryland, allocate revenue to student meal programs
A bill introduced in Maryland could impose taxes on certain sugary drinks with some of the revenue going to support programs for students across the state.
The For Our Kids Act, or House Bill 1469, defines sugary drinks as non-alcoholic, carbonated or non-carbonated beverages that contain added sugars or non-nutritive sweeteners. Natural fruit or vegetable juices, milk, infant formula and beverages for medical use would not be taxed under the bill.
The bill would tax distributors for selling sugary drinks, syrups and powders to retailers starting in July 2026.
Beverages would be taxed at 2 cents per ounce, and syrups and powders would be taxed at 2 cents per ounce of the beverage that can be produced according to the instructions.
The rate of the Sugary Beverage Distributor tax would increase in 2027 and each following year based on the consumer price index. If there is a decline or no growth in the index, the tax rate would stay the same for that year.
Drinks sold to the government, sold for resale outside of the U.S., or sold to other distributors rather than retailers would be exempt from the tax.
Revenue would support programs for children
At the end of each fiscal year, $189 million in revenue from the Sugary Beverage Distributor tax would be allocated to the Healthy School Meals for All Fund and $50 million would go to the Child Care Scholarship Program.
The remaining revenue would go to the state's general fund.
The revenue sent to the Healthy School Meals fund would provide funding for the State Free Feeding Program and In-Classroom Breakfast program.
Both programs, created in a partnership between the Department of Education and county boards, would distribute funding to eligible non-public schools.
Health impacts of sugary drinks
The bill has gained support from the American Heart Association. In a statement, the organization said the bill would provide the revenue needed to address educational needs and food security while also curbing the health impacts of sugary drinks.
According to the American Heart Association, nearly two-thirds of youth consume at least one sugary drink per day, contributing to health risks like tooth decay, type 2 diabetes and heart disease.
"The For Our Kids Act represents a critical advancement in our mission to safeguard the health of children in Maryland. By taking strong action to curb the overconsumption of sugary drinks, while providing critical revenue to programs that benefit all families, we are making a powerful statement about prioritizing our children's well-being," said cardiovascular nurse epidemiologist Yvonne Commodore-Mensah.
The organization said 40,000 deaths in the U.S. are linked to excessive consumption of sugary drinks.
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