Tech Talkin’ Govs 2025: Innovation emphasized in governors’ State of the State addresses—Part 4

In this week’s continuing coverage of gubernatorial addresses as they discuss the innovation economy, the following highlights have been selected from the State of the States or budget addresses given between Feb. 5 and Feb. 13, 2025, by the governors from Connecticut, Maryland, New Hampshire, and West Virginia. Information on previous 2025 State of the States and Budget addresses can be found here, here, and here.

Additional addresses and states will be covered in future Digest issues.

Connecticut Gov. Ned Lamont gave his FY 2026-2027 Biennium Budget Address on Feb. 5. During his presentation, Lamont announced that Connecticut Innovations, which provides venture capital for high-tech companies in the energy, biotechnology, IT, and photonics sectors, has created a $50 million quantum AI fund to invest in Connecticut startups. Dovetailing that announcement, the governor also proposed over $100 million in key capital investments in AI and quantum computing in his new biennium spending plan. This investment into the Department of Economic & Community Development, the University of Connecticut and Yale would assist in further developing the state’s AI innovation economy and continue to position Connecticut within the life sciences, fintech, and advanced manufacturing sectors. The administration also proposed increasing the state’s biotech R&D tax credits and eliminating the capital stock tax so startups without profits can raise tax-free capital.

Maryland Gov. Wes Moore gave his third State of the State address on Feb. 5, in which he discussed his legislative agenda and budget priorities. Facing nearly $3 billion in revenue shortfalls, the governor detailed the difficulties ahead. Discussing his FY2026 budget proposal, the governor laid out his plans for cutting $2 billion in spending and proposed a wealth tax for those earning $1 million or more. The administration has crafted an economic strategy that focuses on three key industries: information technology and cyber, defense, and life sciences, and seeks to develop these sectors into industry hubs. As part of that strategy, Gov. Moore recently nominated Harry Coker, the former U.S. National Cyber Director, to lead the state’s Department of Commerce.

New Hampshire Gov. Kelly Ayotte gave her first Budget Address on Feb. 13. As part of her FY 2026-2027 biennium spending plan, Ayotte has prioritized investments in workforce development, particularly in opportunities for the Granite State’s students to either learn a trade or receive credentials in high-demand fields, while opening pathways to public-private partnerships in the state. The governor’s budget allocates $4.4 million to continue the freeze on tuition at the state’s community colleges and $6 million toward dual and concurrent enrollment at community colleges, giving New Hampshire high school students the opportunity to jumpstart their careers through training, exposure, or experience, and provides funding to expand career and technical education and workforce credentialing programs in the trades and health care.

West Virginia Gov. Patrick Morrisey gave his first State of the State and Budget Address on Feb. 12. Titling his address the “Mountain State Comeback,” Morrisey highlighted several key economic goals for the state, including initiatives to make the state more competitive. Morrisey announced a new strategic investment that will create the West Virginia Power (Powering Our Workforce through Energy & Revolutionary) Tech Center. The proposed center aims to drive the state's workforce through energy and technology partnerships with its higher education institutions. He also spoke of partnering with experts and innovators to understand the intersection between the energy and technology fields to learn how West Virginia can use both to develop and ensure good-paying jobs for West Virginians. Morrisey also called for universal licensing reciprocity to attract talent and for greater educational focus on STEM, coding and digital literacy. Additionally, the governor seeks to expand and align the state’s vocational or technical training programs and apprenticeships or internships with the business community.

This article was prepared by SSTI using Federal funds under award ED22HDQ3070129 from the Economic Development Administration, U.S. Department of Commerce. (The statements, findings, conclusions, and recommendations are those of the author(s) and do not necessarily reflect the views of the Economic Development Administration or the U.S. Department of Commerce.