MarylandSB 02822026 Regular SessionSenateWALLET

Budget Bill (Fiscal Year 2027)

Sponsored By: Sponsor information unavailable

Signed by Governor

Operating BudgetAppropriationsBudgets -see also- Capital Budgets

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Bill Overview

Analyzed Economic Effects

233 provisions identified: 155 benefits, 34 costs, 44 mixed.

More Autism Waiver services for students

The law adds $35.06 million for the Autism Waiver in fiscal 2026. Funds are available now to expand or maintain services for eligible students.

More child care scholarships

The law adds $48.85 million in federal funds for child care scholarships in fiscal 2026. The money is available now. Eligible families can get more help paying for child care.

More funding for disability services

The law adds $356.6 million to cover a past shortfall and $380 million more to expand community services for people with developmental disabilities. Money supports in‑home and community supports through the state’s Developmental Disabilities Administration. Funds are available now, so services stay funded and can reach more people this year.

More Medicaid mental health payments

The law adds $642.4 million to pay Medicaid behavioral health providers. It also sets aside $67.1 million to finish paying behavioral health claims from Service Year 2025. This funding supports care access and keeps provider bills paid on time. The money must be used only for these purposes.

More support for foster and kinship care

The law adds $30.2 million for foster care maintenance payments in fiscal 2026. The funds must be used for foster care and unused money returns to the state. It also adds $8,007 for the Kinship Navigator contract to help relatives caring for children find services.

Heat pump help for lower income homes

The law authorizes a $72.65 million transfer from the Strategic Energy Investment Fund to the Maryland Energy Administration for the Residential Energy Equity Program. The money pays for heat pump installation and replacement for low‑ and moderate‑income households. If you qualify, this can lower what you pay for heating and cooling.

Lawyers for renters facing eviction

The state moves $19,000,000 to fund access to counsel in eviction cases. It includes $3.6 million from the General Fund and $15.4 million from Special Funds. Renters in eviction court can get legal help paid for by this program.

More child care and pre-K support

The state adds $10 million from the Blueprint Fund to expand pre-K grants. It adds $5.687 million from the Blueprint Fund for the child care credential program to grow the workforce. It provides $1 million for a child care tracking system to improve access and oversight. It also funds $646,479 for Early Childhood staff pay and benefits. Unused Blueprint funds are canceled; unused tracking-system funds return to the General Fund.

Seafood industry loans if fund created

The state sets aside $2 million to start a seafood industry assistance fund. It will offer loans and financial help to commercial watermen and small seafood businesses. The funding takes effect only if a separate bill creates the fund. Unused funds return to the General Fund.

Big funding to lower insurance premiums

Maryland’s reinsurance program gets $837.3 million in fiscal 2027. That is $259.5 million from state special funds and $577.8 million from federal funds. The money helps stabilize the individual health insurance market and can hold down premiums.

Cuts to SNAP, SUN Bucks, and cash aid

The law removes $59.3 million that was set aside to give partial SNAP during a federal shutdown. It also cuts $700,000 from the SNAP Senior Supplement. SUN Bucks administration drops by $5.2 million, which can mean less outreach or processing. Temporary Cash Assistance falls by $10.95 million. Households may see fewer state‑level supports and slower service.

Medicaid provider funding trimmed, with triggers

The law lowers fiscal 2026 Medicaid provider reimbursements to $648,339,828 and funds $224,630,931 for Service Year 2025 claims. For fiscal 2027, it also sets triggers that can cut funding more: $8,390,332 and $2,000,000 in General Funds if separate laws pass. A $1,000,000 Special Fund change also depends on another law. These changes can affect provider payments and, in turn, access to care.

Rainy day fund deposit canceled

For fiscal 2027, the state cancels the $449.8 million deposit to the Rainy Day Fund. The appropriation is set to $0.

More help with home energy bills

The law adds $24 million in federal funds to the Maryland Energy Assistance Program. Help is available now to eligible households to pay energy bills. It also supports local agencies that process the aid.

DDA: More support hours and protections

Starting July 1, 2026, DDA approves dedicated hours when a plan shows a 1:1 or 2:1 need, or when people need daytime support due to retirement, transitions, recovery, or fewer than 30 hours of day services. DDA must keep State‑only services for applicants until they enter the waiver, or if found ineligible after completing the process. In self‑directed services, adults may use up to 10 hours a month for nondirect administrative help. Roles for support staff must be separate.

Faster, more accurate SNAP and cash help

DHS must file four quarterly reports on how fast it processes TCA, SNAP, TDAP, and PAA and why cases are denied. The first is due August 1, 2026; the others are due November 1, 2026; February 1, 2027; and May 1, 2027. DHS must send a SNAP error‑rate report and plan by September 1, 2026, a Minimum Living Level and TCA calculation report by October 1, 2026, and a home energy application processing report by December 31, 2026. $750,000 stays on hold until DHS reconciles FY2026 spending by September 30, 2026. Funds are canceled if reports are not sent.

Keeping Medicaid long‑term care running

The law provides $25.6 million to operate LTSSMaryland, the Medicaid long‑term care system. Funds are available now and support eligibility, service authorizations, and payments. This keeps long‑term services and supports moving for seniors and people with disabilities.

More funding for temporary disability aid

The law increases funding for the Temporary Disability Assistance Program by a net $3.74 million in fiscal 2026. It shifts $5.1 million in special funds and lowers $1.36 million in general funds. The net increase supports benefits and program operations.

More Medicaid help and smoother payments

The state provides $500,000 for navigators to help people apply for or renew Medicaid and CHIP. When state‑placed individuals’ care becomes Medicaid‑eligible, matching state funds are moved to Medicaid, and any recovered overpayments go to pay providers. Unused navigator funds revert to the General Fund.

More transparency in child welfare services

Foster care maintenance funds can only be used for foster care and cannot be moved to other uses. DHS must report monthly counts of children staying in hospitals, hotels, or unlicensed settings for Oct 2025–Sep 2026 by November 1, 2026. DHS must also report child welfare staffing and caseload needs by November 1, 2026, post monthly child welfare data through December 31, 2026 and confirm by January 15, 2027, and detail youth hotel placement costs by September 30, 2026 and with the FY2028 budget. Funds are canceled if reports are not sent.

Protects disability services, adds behavioral health help

The law blocks any extra DDA provider rate cuts in fiscal 2027 beyond those already approved. It sets aside $1,000,000 to pay peer recovery specialists’ certification fees and wages during supervised hours. Community behavioral health services get a net $87,709 increase now. It also provides $4,600,000 for Certified Community Behavioral Health Clinics and shifts $17,603,358 of DDA funding to a special fund without changing the total.

Smoother Medicaid sign‑up and renewals

The law funds $5.31 million in IT upgrades at the Maryland Health Benefit Exchange to meet new federal Medicaid eligibility rules. It also provides $150,000 to reclassify vacancies and add eligibility staff. These changes help people apply, renew, and keep coverage.

Stronger SNAP help and school meals

The law invests $3.41 million to modernize the EBT system and $6.3 million more for SUN Bucks. It sets aside $300,000 to repay SNAP and cash benefits stolen electronically. It adds $547,636 for SNAP outreach and $981,797 for SNAP job training. Schools also get $15 million more for meals. DHS call centers get $7.47 million to improve benefit help and response times.

Property tax relief for homeowners

The law backfills $3,720,741 right away to keep property tax credit programs funded. For FY 2027, it provides $6,137,595 for these credits: $3,252,971 from the General Fund and $2,884,624 from Special Funds. It adds $100,000 for the Homeowner Protection Program and $147,137 in special funds to hire two HPP contractual staff. The State Department of Assessments and Taxation runs these property tax relief programs.

BOOST: Extra aid, rules, and security grants

Students with special needs who get a BOOST scholarship also get an extra award at least equal to their BOOST amount, funded by a $569,800 pool. All BOOST schools must follow nondiscrimination rules; violators must repay 2026–2027 BOOST funds and cannot bill the family instead. Nonpublic BOOST schools get $9 million for nurses, health services, and security; leftover funds go to textbooks.

COLA and steps for listed state jobs

Eligible nonclassified positions named in the law get the same cost‑of‑living raises and pay steps as Standard Pay Plan jobs. The pay changes follow the fiscal 2027 schedule.

Converting long‑term contractors to jobs

The Board of Public Works can create regular state jobs if 1.25 contractual FTEs are abolished for each new job. Agencies cannot raise their budgets this year or in the next two years to do this. People who have been contractual for at least two years get priority. These new jobs do not count toward the 100‑position cap.

Higher pay for state executives

The law sets the 2027 pay schedule for executive jobs, including Transportation. Eligible jobs get the 2027 cost‑of‑living increase and salary steps, on the same timeline as the standard plan. Example ranges: EPP 0001 is $101,833–$152,907; EPP 0009 is $194,898–$368,422. Agencies with their own pay‑setting rules keep using them.

Pay boosts for school and college staff

The law funds raises and benefit costs for education staff. University System of Maryland employees get $5,989,707 for COLA and steps. Teachers in the Career Ladder program get $6,639,201 in program payments. Added funds also cover pay and fringe gaps at MSDE, the School for the Deaf, the State Library, the Longitudinal Data System Center, the Higher Education Commission, and MFRI. Community colleges get $1,892,340 to cover employer retirement costs. Most funds are available immediately for fiscal 2026 needs.

FY2027 state tax credit payments

The state provides $90,505,225 from the General Fund for tax credit payments in FY 2027. The State Department of Assessments and Taxation will make these payments under existing programs to eligible recipients.

Funds added for business tax credits

The budget adds $4.17 million to pay Enterprise Zone Tax Credits. It also adds $7 million to cover Historic Tax Credit obligations. These funds are available now so approved credits can be paid.

Corrections funding tied to oversight reports

The law withholds selected DPSCS funds until required reports arrive. Topics include hiring and separations (quarterly through July 1, 2027), inmate medical and mental health oversight (due Oct 15, 2026), criminal history and patient health record IT status (due Nov 15, 2026), and a plan to reduce and end mandatory overtime with detailed facility data (due Nov 1, 2026). Other holds cover parole data (due Nov 15, 2026), oversight of private home detention companies (due Sep 15, 2026), and Duvall v. Moore compliance (due July 1, 2026). DPSCS must also withhold $250,000 from a medical vendor until audited grievance response rates average at least 95% over three months. Budget committees have 45 days to review. Blocked funds cannot be moved and revert to the General Fund if reports are not submitted.

Juvenile Services gets supplemental funds

The Department of Juvenile Services receives supplemental funds available immediately to support Fiscal 2026 needs. These include $11,112 for the Secretary’s Office, $917,626 for delayed planned expenses, $15,807 for youth medical and behavioral health contracts, and $97,945 for prior shortfalls. Another $8,551,131 covers legal fees and data archiving tied to the Maryland Child Victims Act of 2023.

More funds for defense and claims

The law sets aside $8.2 million so attorneys are available at District Court initial appearances. It reserves $11.48 million in State funds, plus $358,100 in special and $350,000 in federal funds, to pay public defender panel attorney fees in Fiscal 2027. It also locks $8,530,154 (district) and $36,531 (appellate) from Fiscal 2026 for panel fees only. The state moves $13,337,020 to the insurance trust fund to pay valid tort claims. Unused restricted funds revert to the General Fund.

Planning and neighborhood projects get funds

The Department of Planning receives $1.71 million for Research Survey and Registration and $2.34 million for Preservation Services. The West North Avenue Development Authority gets $19.84 million for local projects. MDOT sets aside $500,000 for matching grants to market the Purple Line in the three months before and after opening. Any Purple Line funds not awarded in Fiscal 2027 remain available in Fiscal 2028; money not used for this purpose is canceled.

Stronger budget forecasts and health reports

The Governor’s budget books must show a long‑term forecast for key funds, including the General Fund and school funding. It must list revenues, spending, and balances for the last year, this year, the budget year, and four years after. The Budget Secretary must also publish a detailed appendix on the employee and retiree health plan for Fiscal 2026–2028. For Fiscal 2027, agencies must charge federal funds before State funds, except for capital projects and DHS TANF carryforwards.

Health department overtime and planning

The state provides $14.3 million so the Maryland Department of Health can cover overtime and keep services running. It also adds $600,000 to update the health facilities master plan and survey the Rosewood site. Funds are available now for fiscal 2026 to support public health operations and planning.

Keeping roads, ports, and MVA running

The law provides $2.62 million to pay higher electricity costs for highway lights. It adds $10 million to keep the Work Zone Safety Program operating. It funds $681,198 for port software licenses. It adds $2.40 million so the MVA can cover credit card fees, postage, and materials for IDs and plates and keep services going.

More funding for transit and travel

The state adds $12.2 million to expand paratransit and restore commuter bus service. It also provides $6.5 million so airports can clear snow and keep flights moving. Another $5.3 million covers MDOT software, building upkeep, security, and employee onboarding. These funds are available now for fiscal 2026 and keep riders and travelers moving.

More oversight of MDOT spending and debts

The law holds $500,000 until MDOT and MDTA report by November 1, 2026 on toll dispute handling and customer communications, and $250,000 until an October 1, 2026 report on outstanding tolls and collections. MDOT cannot spend on projects or grants over $500,000 that are not in the 2026–2031 plan without 45 days’ notice to budget committees. Debt is capped as of June 30, 2027: CTB $3,372,325,000; nontraditional $819,205,000; Purple Line $2,506,531,397. MDOT must give 45 days’ notice before adding new major projects or raising a major project’s cost by more than 10% or $1,000,000. MTA must report by October 1, 2026 on vehicle announcement equipment and finish repairs by October 1, 2027.

More staff to help taxpayers

The law adds $1,417,383 and 25 positions for the Comptroller’s Taxpayer Services. This expands customer service and reduces delays for taxpayers. Any unused funds go back to the General Fund.

Medicare Advantage incentives report and hold

HSCRC must report by January 15, 2027 on efforts to stabilize the Medicare Advantage market under the AHEAD model. The report must confirm that plan incentives were in place by January 1, 2027 or the $250,000 held funds are canceled. The report also lists eligible plans, where they operate, and next steps. Budget committees have 45 days to review.

More funding for trauma and doctors

The law increases revenues that support the Shock Trauma Center and the Maryland Trauma Physician Services Fund. It also provides a $1.5 million grant to CCI Health Services for a family medicine residency program. These actions help keep trauma care and primary care doctors available.

More oversight of hospital overstays and placements

The law holds small amounts of agency funds until key reports are filed to fix care delays. MDH must report on staffing for a pediatric hospital overstay unit by July 15, 2026 and on placement times for people found NCR/IST by August 31, 2026. OHCQ must report on a nurse surveyor contract backlog by November 1, 2026. MDH must also send a detailed Community First Choice and Community Options report by August 1, 2026. DHS and MDH must confirm pediatric overstay coordinators and results by December 1, 2026. MDH must propose targeted case management rate changes by October 1, 2026.

More money for housing and neighborhoods

The state adds $51.2 million for rental housing capital projects and $42.21 million for the Baltimore Vacants Reinvestment Initiative. It adds $150,000 to the Main Street Improvement Program and $250,000 for the Artists Flats project in Howard County. It provides $37,500 each to Port Towns CDC and the Carole Highlands Neighborhood Association. It funds $300,000 for historic preservation capital projects, $100,000 for the Senior Villages Program, and $60,000 for a homeless needs assessment. Where stated, unspent funds cannot be transferred and must return to the General Fund.

Community colleges get $438.9 million

The state distributes $438.9 million to community colleges for FY2027 under the Cade formula. Each college gets a set amount. Examples: Allegany $9.4 million, Anne Arundel $44.7 million, CCBC $70.9 million, and Wor‑Wic $12.7 million.

Funding for testing and school oversight

The law provides $12.2 million to pay statewide student assessment contracts. It also adds $497,695 for MSDE’s Office of Accountability and $109,073 for the Office of Finance and Operations to cover salaries and benefits. Funds are available now for fiscal 2026 to keep testing and school oversight running.

New grants for tech and re‑entry jobs

The state funds job training and re‑entry support. It gives $1,300,000 to BCR Cyber for a Cyber Workforce Accelerator. It adds $100,000 for tech workforce training with Consult Lemonade and $50,000 for STEM City Baltimore. It restores $500,000 for Prince George’s re‑entry employment incentives. Any unused grant funds must go back to the General Fund.

Clean energy financing fund expands

The Maryland Clean Energy Center receives $23.75 million for the Climate Catalytic Capital Fund. The money supports clean energy financing and projects in the state.

Local aid and tax distributions funded

The law funds $203.6 million in Disparity Grants for Fiscal 2027, with a possible $27.0 million cut if a separate law resets funding to the Fiscal 2026 level. It also provides $1.6 million from admissions and amusement taxes and $3.04 million from the cannabis sales tax for Fiscal 2027 distributions. Another $2,133,097 is available immediately to finish local cannabis tax distributions for Fiscal 2026.

Budget backstops and contingency fund boost

The law provides $30 million to backfill a fiscal 2026 modernization savings shortfall, available immediately. It adds $1.92 million to cover a racetrack authority closeout shortfall. It also increases the Contingent Fund by $5 million for the Board of Public Works to handle unforeseen needs.

More energy efficiency help statewide

Beginning July 1, 2026, the state funds energy savings programs for homes and businesses. Low- and moderate‑income households get $34,996,905 for home energy upgrades. Non‑residential sectors get $40,799,085 for efficiency projects. If a separate law expands the Strategic Energy Investment Fund (SEIF), $1.5 million goes to nonprofit grants and $400,000 funds a state resiliency study. The law does not set per‑household grant amounts.

More money for state IT projects

The law adds $59.31 million to the Information Technology Investment Fund for major state IT projects. The Department of Information Technology decides how to allocate the funds. Any unused money stays in the fund for projects in fiscal 2027.

More funding for clean energy planning

The law directs new money to clean energy programs and planning. It moves $23.75 million to the Maryland Clean Energy Center’s Climate Catalytic Capital Fund. It adds $3 million for the state’s power plant review work and $500,000 for an Easton Utilities energy storage project. It allows up to $5 million and up to nine positions to launch a Strategic Energy Planning Office. It funds $5 million for the Jane E. Lawton energy efficiency loan program in FY 2027. It sets aside $13 million for new renewable energy grants or loans, starting July 1, 2026, if separate SEIF‑use legislation is enacted. It also adds $4.2 million in federal funds to the Maryland Department of the Environment and $100,000 for a study on climate and homeowner insurance if HB 1219 or SB 739 is enacted.

Up to $42 million for college research

The law sets aside $42 million for a Higher Education Research Fund. The money comes from the energy fund only if another law authorizes that use. If authorized, it may support research in any field.

Economic development fund gets $16 million

The state provides $16 million to the Economic Development Opportunities Program Account for FY2026. The money supports economic development activities.

Crime victim compensation funds reduced

The law cuts $3,000,000 in federal funds for the Criminal Injuries Compensation program. Victims who use this program may face less money for compensation and services. The cut is effective immediately for fiscal 2026.

Cuts to benefit and energy help call centers

The law cuts call center funding that supports public benefits. Family Investment call center funding drops by $2.6 million. The Home Energy Programs call center is cut by $22.5 million. These changes take effect for fiscal 2026 and can mean slower service for people seeking help.

Cuts to DHS call center and Senior Call Check

The DHS Constituent Services Call Center budget is cut by $6,827,422 across state, special, and federal funds. A small $2,674 federal reduction also applies to Social Services call center services. The Senior Call Check program’s special fund drops by $450,000. These changes can reduce service capacity.

Medicaid and CHIP funding reduced

State‑funded Medicaid services drop by $11,603,202 to match projections. The Maryland Children’s Health Program falls by $34,141,017 ($11,929,355 state and $22,211,662 federal). These are fiscal 2026 adjustments and take effect now.

Less aid for police loans and school

The state cuts $1.9 million from the Loan Assistance Repayment Program for Police Officers. It also cuts $1.5 million from the Police Officer and Probation Agent Scholarship Program. These reductions take effect for FY2026 and may lower award amounts or the number of awards.

Less funding for Community College Promise

The Community College Promise Scholarship budget is cut by $2 million for FY2026. This reduction takes effect now. Some students may get smaller awards or fewer awards may be offered.

Police aid and transit funds tied to plans

Local areas that do not give valid crime data by November 1, 2026 lose 15% to 50% of their third‑quarter State Aid for Police Protection payment until they submit verified data. The Maryland Transit Administration also has $100,000 held back until it delivers a Purple Line station‑area crime prevention plan by March 1, 2027. If the plan is not submitted, the $100,000 is canceled.

Healthcare cuts tied to other laws

Community Health Resources Commission funds drop by $20 million if another law reduces a consortium funding mandate, and by $1 million more if a separate law removes the commission’s mandate. Foster care provider funding is also cut if another law freezes Interagency Rates Committee rates at January 21, 2026 levels. These cuts take effect only if those other laws are enacted.

Prince George’s Blue Line funding removed

The law eliminates $27,000,263 for the Prince George’s County Blue Line Corridor Facility Fund. This removes planned money for that local development effort for this fiscal year.

Less funding for historic rehab credit

Funding for the Maryland Historic Revitalization Tax Credit drops from $18.5 million to $17 million this year. Fewer awards may be available.

BOOST scholarships: new priorities and caps

MSDE ranks BOOST applicants by family income. Current BOOST students and their siblings get priority. Awards must be made by December 31, 2026. If a student does not have special needs, the scholarship cannot be more than the smaller of statewide average per‑pupil spending or the school’s tuition. BOOST schools must give yearly English and math tests in grades 3–8 and science tests once per grade band.

State worker and retiree health fund changes

The budget office can move certain health insurance lines between agencies in fiscal 2026 and 2027. Any unspent employee and retiree health funds must be credited back to the state health insurance fund. The law also reduces $3,000,000 in retiree health funding at Eastern Correctional Institution, but the department may replace it with special funds for retiree Health Reimbursement Accounts.

College funding limits and targeted aid

Across-the-board Executive Branch cuts also apply to public higher education unless an exception is listed. The law sets $73,322,724 for the Sellinger program to aid nonpublic colleges. HBCU funds are restricted: $9,000,000 for UMES, $9,000,000 for Coppin, and $7,694,103 for Morgan (general funds), and $14,540,692 for Bowie and $20,459,308 for Morgan (special funds) must be used only for eligible purposes in Section 15-128. Any unspent HBCU money at year end moves to the HBCU Reserve Fund under Section 15-129. Also, $13,075,819 in special funds at the University of Maryland may be used only for the Maryland Fire and Rescue Institute.

School safety money and MSDE oversight

The Maryland Center for School Safety gets $16.6 million for safety grants. $100,000 of MSDE’s general administration is blocked until MSDE submits a corrective‑action report by December 1, 2026. The report covers hiring checks, class assignment monitoring, licensing, pre‑K eligibility accuracy, federal reimbursements, sole‑source contracts, and late payments to 21st Century Centers. Blocked funds revert if the report is not submitted.

Clean energy funds with conditions

The law sets aside $20 million for grants or loans to new Tier 1 renewable energy, but only if another law expands allowed uses of the energy fund. It also makes a $1.5 million swap to pay the Chesapeake Conservation and Climate Corps with energy fund dollars if that same authority is enacted. Planning funds are cut by about $268,000 if the fund is expanded to broader climate uses. It also shifts $2.04 million in special funds to help local energy assistance agencies deliver services.

Fix for Development Finance funds

The law adds $31,005 in federal funds to the Division of Development Finance. This fixes accounting errors from a reorganization. The money is available right away for FY2026 operations.

More help for Baltimore child support

Baltimore City gets $911,778 for privatized child support services. The money is available now for fiscal 2026. Parents can see better access to help collecting and managing child support.

More security staff and upgrades

Seven new Maryland Capitol Police jobs are created, funded at $308,021, and take effect immediately. The Military Department gets $1.1 million for State Active Duty armed security forces. Annapolis facilities receive $184,064 for security upgrades. These funds support staffing and safety improvements in FY2026.

Pay backfills for Commerce staff

The law adds targeted funds to cover salary and fringe shortfalls across the Department of Commerce. Offices getting support include the Secretary’s office, Policy and Research, Administration and Technology, and several Business and Industry units. The added amounts range from about $1,800 to $150,000 and take effect for FY2026 immediately.

More help with disability claims

The law funds help to file for Social Security for disabled foster kids and adults on TDAP, TCA, or PAA ($172,524). It adds $451,231 in federal funds to speed disability claim reviews. It also supports rehab services staffing: $349,222 for client services, $163,472 for a workforce center, and $60,166 for headquarters. Funds are available now for fiscal 2026 to keep claims and services moving.

Plan to cut airport noise

The Maryland Aviation Administration must file a noise abatement plan for flight school departures from runway 15 at Martin State Airport by October 1, 2026. The plan must explain noise impacts, actions to reduce noise, and a timeline. $100,000 is held until the plan is submitted.

Grants for local behavioral health services

Easterseals receives $150,000 to provide behavioral health services. NAMI Prince George’s County receives a one‑time $10,000 grant for local behavioral health and peer support. Any unused funds return to the General Fund.

More funding for Maryland veterans

The law adds $2.61 million for Veterans Home operations and care, using prior retained balances. It gives $1.63 million to cover Charlotte Hall Veterans Home costs and IT needs. The Cemetery Program gets $699,453 in special funds and $27,372 in federal funds. The Veterans Trust Fund gets $250,000 to help veterans affected by the federal shutdown. Funds are available now for fiscal 2026 needs.

More money for crime victim payments

The law adds $407,724 for the Criminal Injuries Compensation Board and $1,000,000 for the Sexual Assault Reimbursement Unit. The money pays eligible victim claims and reimbursements in fiscal 2026. Funds are available now.

More support for Senior Call Check

The law adds $30,033 in special funds for the Senior Call Check program in fiscal 2026. Money is available now to support daily check‑in calls for seniors.

One-time grant for College Park Food Bank

The College Park Community Food Bank gets a one‑time $50,000 state grant. The funding supports food assistance for local families. Any unused money goes back to the General Fund.

Small grants for seniors and families

Senior Family Supports receives $75,000 for services to older adults and their families. Roberta’s House receives $50,000 to support family services. Any money not used for these purposes goes back to the General Fund.

Small raise for nurse support staff

The law adds $4,783 to cover salary and fringe shortfalls for Nurse Support Program II staff. The money is available immediately for fiscal 2026. It helps keep program staffing stable.

State keeps peer disability support

The law adds $224,000 and $143,271 to keep peer outreach and supports after a federal grant ended. These funds keep services running in fiscal 2026. People who rely on peer support do not lose help.

Stronger child support systems

The law adds $119,061 for the Treasury Offset Program to collect unpaid child support. It provides $620,400 for research and data work and $500,000 for independent system checks. These funds improve collection, accuracy, and reliability for families owed support.

Funding fix for property tax credits

The state shifts $1 million to keep property tax credit programs whole. General Funds rise by $1 million and Special Funds drop by $1 million. Credits for eligible homeowners continue. The change takes effect now.

Grants for autism and kids’ programs

The Autism Society of Maryland receives $150,000 to expand services. The Coast Kids program receives $65,000 for educational programming. Unused funds must return to the General Fund.

More flexible funds for School for the Deaf

The Maryland School for the Deaf can use payments from other agencies as special funds for its operating costs. This gives the school more flexibility to run programs for students.

More money for Maryland 529 savers

The state puts $9.3 million into the Save4College program for FY2027. This money funds the state contribution to eligible Maryland 529 accounts. Families who meet program rules can get the state match toward college savings.

More staff for legislative support

The law funds five new jobs in the Department of Legislative Services starting July 1, 2026. Two are in human resources and three are in information technology. It adds $833,856 to pay for these positions in FY2027.

Extra payments for lottery vendors

The law gives one-time payments to lottery vendors. $231,750 covers higher instant ticket machine costs. $407,305 covers other vendor cost increases. The money is available now.

Fee waiver for former federal employees

The state sets aside $150,000 to waive business licensing fees for former federal employees who lost jobs in a reduction in force. This lowers start‑up costs for eligible people. Unspent funds go back to the General Fund.

Small grants for local business support

The state gives $25,000 each to three local chambers of commerce. It also adds $2,500 to keep a contract that helps public assistance recipients start businesses. Unused chamber funds return to the General Fund.

Small grants for local makers

A $20,000 grant funds small‑batch manufacturing training at the Black Enterprise Resource Center. A $100,000 grant supports FSC First’s Level Up program for small businesses. A $150,000 grant backs the Smart Garments Center for local makers. Any unused funds return to the General Fund.

State review to speed business permits

$250,000 is held until Planning files a permits report by September 30, 2026. The report must flag agency overlaps, show processing times, and propose metrics. Stakeholders must be consulted. Money reverts if the report is not sent.

Agriculture program keeps service fees

The Agriculture Department may keep the fees a program collects and spend them as special funds for that program’s operating costs. No dollar amounts are set in the law.

AI use plan before spending

Information Technology and General Services each have $250,000 held until they file a joint report on artificial intelligence by November 1, 2026. The report must cover statewide AI implementation, procurement steps, and impact reviews. If no report is filed, the money returns to the General Fund.

Corrections payroll and IT support

The law funds pay and benefits across the corrections department, including the Secretary’s Office, IT, intelligence, capital construction, administrative services, and operations. It includes $1.9 million for Cisco network support and multiple salary and turnover fixes totaling several million dollars for fiscal 2026. These funds keep staff paid and systems working; they do not pay households directly.

Easier funding for local children’s programs

State agencies may move approved funds to the Children's Cabinet Interagency Fund by budget amendment. The money must cover costs tied to local partnership agreements the Fund approves. This helps route funding to local children’s services.

Emergency Management rent support

The Maryland Department of Emergency Management gets $30,000 for FY2026 rent. The funds are available right after the budget passes.

Emergency repairs at state prisons

The State Reserve Fund provides $30 million for emergency maintenance at correctional facilities. The money is available right away and supplements fiscal 2026. This keeps essential repairs moving at the Department of Public Safety and Correctional Services.

Encrypted police radios and victim data

The state reserves $6,000,000 in police aid for grants to encrypt law‑enforcement communications, including in‑vehicle systems. The Governor’s crime office must send the state sexual assault coalition monthly, searchable case and testing data from the evidence kit system to support victim notices. Grant funds to the Sheriffs’ Association should support training on Maryland’s rules for immigration enforcement agreements.

Extra staffing funds for corrections

The law adds funds to fix payroll gaps and past shortfalls at several correctional facilities. Examples include $1.81 million for the Metropolitan Transition Center and $1.21 million for the Maryland Reception, Diagnostic and Classification Center. It also realigns budgets to match actual vacancies, such as $1.57 million at the Metropolitan Transition Center. These funds are available now for fiscal 2026 operations.

Funding restored for Canal Place park

Canal Place River Park funding is restored with $100,000 in General Funds and $7.2 million in capital funds. The authority also gets $14,423 to cover higher maintenance and janitorial contract costs. Money is available immediately to keep the project moving.

Funds for Agriculture staff and lab

The Department of Agriculture receives $500,000 to cover salary and benefit shortfalls. It also gets $55,000 to replace a vent hood in the Turf and Seed lab. These actions support day‑to‑day operations and safety in state labs.

General Services staff pay and facilities

The Department of General Services gets funds to cover staff pay gaps and separation payouts. Examples include $378,547 for procurement salaries, $300,000 for design and construction salaries, and payouts for the separation program. The Office of the Secretary gets $109,491 and $114,480 for salary shortfalls, and $200,000 funds grounds control systems in Annapolis. Funds are available now for fiscal 2026.

Grants for arts and media projects

The law funds arts and media work across Maryland. It gives $250,000 to the Baltimore Symphony Orchestra’s Music for Maryland program. It gives $65,000 to the Fund for Art in Ellicott City and keeps that money out of the council’s FY 2028 grant formula. It funds a $150,000 public TV documentary, with the broadcaster expected to add non‑state support. It also provides a $4 million capital grant to build a new production studio.

Grants for local community groups

The law funds local community programming. It gives $500,000 to the Baltimore Alumni Chapter of Kappa Alpha Psi Fraternity, Inc. for programs the chapter selects. It also gives $10,000 to Leader Breeders Inc. These are one‑time grants to support local activities.

Grants for youth and community programs

The law gives one‑time operating grants to several youth and community groups. Awards include $50,000 to Vine Corps, $30,000 to Empowering Minds of Maryland Youth, and $20,000 to Action For Kindness. It gives $50,000 to Neighbors Helping Neighbors of College Park. It adds $500,000 for a children’s program at Dieter’s Close Quarters Defense, Inc. It also provides $75,000 for a high school technical career fair through Lincoln Technical Institute. Any unused funds in these items must return to the state.

More detail in budget books and ledgers

Agencies must keep separate accounts for restricted budget items so auditors can track monthly and final spending. The Governor’s budget books now include a summary of federal revenues by major program. DBM must provide subobject-level data for fiscal 2026 actuals, the fiscal 2027 working appropriation, and the fiscal 2028 allowance. DBM must also submit special and federal fund details with balances and, by September 1, 2026, give a list of subprograms with short descriptions.

More help for immigrants

The Governor’s Office of Immigrant Affairs gets $800,000 to expand services in rural areas. Annapolis Immigration Justice Network gets $100,000 to support legal help. Unused money goes back to the General Fund.

More money to fix state buildings

The law adds funds to keep state buildings safe and working. It provides $1.1 million for emergency repairs and $5.0 million for critical maintenance. It also funds $100,000 for grant software upkeep and $800,000 for the Boys’ Village of Maryland Cemetery project. These dollars help prevent service shutdowns and delays.

More rides for seniors in Howard

The Neighbor Ride program gets $100,000 through the Maryland Transit Administration. It provides door‑to‑door rides for seniors in Howard County. Unused funds return to the General Fund.

More staff for legislative services

The law adds $856,686 and eight positions for policy analysts, legislative assistants, and HR in the Department of Legislative Services. Unused money returns to the General Fund.

More support for juvenile health and facilities

The law adds about $7.6 million to juvenile services. It funds youth medical and behavioral health contracts in the community and in facilities. It covers prior-year shortfalls and keeps temporary air conditioning at the Baltimore City Juvenile Justice Center while HVAC work continues. It also fills a small shortfall for the Juvenile Services Education Program. Funds are available immediately to supplement fiscal 2026.

Pay fixes for tax and revenue offices

The Comptroller’s Office gets $2 million to cover staff salary and benefit shortfalls. SDAT gets $150,234 in special funds to restore staff pay support after a fund swap. The Lottery and Gaming Agency gets $91,241 to cover salary and fringe gaps for Video Lottery Terminal operations. These funds are available now for fiscal 2026.

Police and corrections funding tied to reports

The law holds back $200,000 from corrections until a hiring and attrition report is filed. It withholds $100,000 from State Police until the 2025 Uniform Crime Report is submitted. It also withholds $250,000 each from the Police Training Commission and State Police until they report on implementing new attestation rules. Funds are released only after the required reports are sent.

Reparations Commission operations funded

The state provides $200,000 to the State Archives to support the Maryland Reparations Commission. Unused money returns to the General Fund. This funds the Commission’s work.

Small grants for arts and events

The state funds local arts, museums, and community events. Examples include $50,000 for the JFK 50 Mile race, $50,000 for the Boulanger Initiative, and support for the Sandy Spring Slave Museum, Lakeland Community Heritage Project, and College Park Aviation Museum. It also funds the Dr. Joseph E. Harris Port Markers Trail and a Baltimore flag football league. Unused funds return to the General Fund.

Small grants for events and tourism

Maryland gives $100,000 to the Olney Civic Fund to plan community events like Olney Days. It also gives $75,000 to the Western Maryland Scenic Railroad to run steam and diesel excursions. Unused funds return to the General Fund.

Small grants for housing, safety, and tech

The state provides $100,000 to Mission First Housing for programming at Patuxent Commons. Baltimore City’s Department of Transportation gets $100,000 for stop sign safety cameras. The Technology Advancement Center receives $100,000. Any unused money goes back to the General Fund.

State Archives tech and staffing boost

The State Archives gets $600,000 for IT infrastructure and $777,860 for digitization equipment and staffing in FY2026. Another $1,379,343 backfills operating shortfalls. Funds are available immediately to improve public access and operations.

Study on greenhouse gas costs

Maryland provides $270,000 to study the total assessed cost of greenhouse gas emissions. The funding is available immediately to pay for the research.

Support for Baltimore arts and parks

Parks & People gets $150,000 to build a community of environmental stewards in Baltimore. The Merriweather Arts and Culture Center gets $150,000 that is excluded from the Arts Council’s fiscal 2028 formula. Any unspent funds go back to the General Fund.

Support for parks, boating, and study

The law provides $750,000 to manage Somers Cove Marina and adds $125,000 for boating services through the Waterway Improvement Fund. It also sets $250,000 for a study on creating a new State park at the Beltsville Agricultural Research Center, if the federal government gives notice and access. These funds support outdoor access and planning.

Support for sports events and recreation

The law backs major events and local recreation. It provides $1.5 million immediately for the Maryland Five Star at Fair Hill and the Maryland Cycling Classic. It provides $500,000 immediately for Preakness‑related programming. It gives the Montgomery County Recreation Department $100,000 for a new recreation center. It also adds a tourism grant to the Military Bowl Foundation (the text lists $75,000 or $150,000).

Support for voter and immigrant services

The law funds community outreach and immigrant services. It gives $150,000 to Black Girls Vote for voter education and engagement. It provides $450,000 to the Citizenship Maryland Initiative and an immigration rights task force, including $270,000 for contracts and $180,000 for grants. These funds expand nonpartisan civic outreach and support for immigrants.

Targeted funds for state HR and benefits

The state funds a federal workers hiring effort with $275,866 to support recruiting. It covers $1.78 million in prior‑year electric vehicle costs managed by the personnel office. The Supplemental Retirement Plan Board gets $24,124 to cover staff pay gaps. DBM’s finance division receives $1.72 million from a position realignment to support operations.

Transportation office adds three positions

The Maryland Department of Transportation Secretary’s Office adds three regular positions. The law provides $330,000 to fund these roles. Unused money returns to the General Fund.

Use new federal money to sustain services

When new federal funds show up during the year, agencies must work with DBM to use them to keep current services running first. DBM makes these rules official state policy for fiscal 2027. This helps avoid service cuts and limits new obligations.

Emergency management services stay funded

The law replaces lost federal dollars so emergency management continues without interruption. It shifts $3.23 million to the General Fund to keep operations going. This protects statewide emergency services.

EMS and school safety staffing funded

The law funds $356,785 for the EMS Executive Director’s salary and $38,530 for Maryland Center for School Safety staff pay. These funds keep emergency response leadership and school safety operations staffed in fiscal 2026.

Funding for voting and lottery systems

The law funds core statewide systems. It provides $4.77 million in special funds for a new statewide voter system. It also adds $161,775 to keep the Instant Ticket Lottery Machine program running. This supports smooth elections and lottery operations.

HVAC upgrades for Baltimore City schools

The law provides $9,000,000 in special funds for HVAC upgrades in Baltimore City public schools. This funding is available only if a separate law allows the spending despite SEIF–RGGI account rules.

Local traffic safety and transit study

The state reserves $100,000 only for traffic calming at Walther Avenue and Echodale Avenue in Baltimore City. It also provides $300,000 to the Baltimore Development Corporation for a transit‑oriented development study. Any unused study funds must return to the General Fund.

Lower 2026 transit debt payments

The budget lowers 2026 transit debt payments. MDOT’s Special Fund drops by $8.23 million for lower actual debt service. It also cuts $4.70 million by delaying fare collection debt service. These are timing changes only.

More staff to oversee utilities

The Public Service Commission receives $1.4 million and nine new positions funded by the Public Utility Regulation Fund. The Commission may reassign these positions across programs. Unspent funds are canceled.

One-time funds for libraries and archives

The State Archives receives a one‑time $2,750,000 supplement. The Enoch Pratt Free Library receives a one‑time $550,000 grant. Any unused money must return to the General Fund.

Community grants for local health care

The state gives $50,000 to the YMCA of the Chesapeake for health programs, $150,000 to Hygea Healthcare for residential addiction treatment, $250,000 to the Western Maryland Women’s Health Center to expand care, and $25,000 to For 3 Sisters to support people affected by breast cancer. Unused funds revert to the General Fund.

Grant to Anne Arundel Food Bank

The Anne Arundel County Food Bank gets $100,000 through the Department of Human Services. Low‑income residents may see more food help. Unused funds return to the General Fund.

Health data and IT upgrades

The state provides $500,000 for a CRISP/DrFirst health information system grant. DDA gets $5,000,000 for data analytics tools to improve financial and program decisions. DDA must review plans with stakeholders and file quarterly reports starting July 1, 2026. Unused funds revert to the General Fund.

Health studies and services for families

The law funds planning and care for youth and families. It provides $250,000 to study young adult behavioral health needs in Prince George’s County, with a report due December 1, 2026. It also adds $150,000 to support the Center for Infant and Child Loss at the University of Maryland School of Medicine.

Medicaid funding for kids in care

The state withholds $200,000 each from Human Services and Health until they confirm a Medicaid State Plan Amendment was submitted to allow reimbursement for clinical care in residential child care placements. The joint letter is due December 1, 2026. If the letter is not sent, the funds revert.

More flexibility to fight opioid crisis

Maryland’s health department can transfer its appropriated funds to other state agencies to support the heroin and opioid response. This lets the state send money where it is most needed to fight overdoses and expand services.

Public health and hospital funding fixes

The law adds $4.99 million to the Prevention and Health Promotion Administration for fiscal 2026 spending. It also provides $595,000 to the MDH Hospital System for a grievance settlement. These funds align budgets with actual costs and are available now.

Small grants for family and mental health

The state provides $100,000 to Camp Attaway for behavioral health community services. It also provides $100,000 to Columbia Community Care through Human Services. Any money not used for these purposes goes back to the General Fund.

Staffing to speed care and oversight

The law provides $1.44 million to keep inspectors and staff at the Office of Health Care Quality. It adds $102,443 to keep blindness and vision services staff. It also funds two pediatric overstay coordinators with $250,000 to help move children out of hospitals faster.

Stronger benefits call centers and checks

The law keeps key benefits systems running. It adds $11.72 million to pay higher costs for work and income checks used by benefit programs. It shifts $1.86 million in special funds to keep the child support call center operating. It also adds $2.06 million for local agencies that deliver home energy help. These funds are available now under the budget.

Stronger health access and oversight

The state withholds small amounts until key health protections move forward. It requires a report on newborn screening and genetic disorders by October 1, 2026. It requires pharmacy rules to make labels and guides accessible for people who are blind or print‑disabled. It requires a report on Montgomery County’s nursing home survey agreement and a clearer budget line for provider payments to the uninsured starting in the fiscal 2028 submission.

Study for Annapolis child care center

The law provides $250,000 to study a child care center at the Old Annapolis Post Office. The intent is to give priority to children of State employees who work in the Annapolis Complex. Any unused funds go back to the General Fund.

Help for housing and neighborhood groups

The state funds local housing and neighborhood nonprofits. It gives $35,000 to Parity Baltimore, $150,000 to Friends of White Oak, and $100,000 to Laurel Advocacy and Referral Services. It also provides $300,000 to Rebirth, Inc. Unused dollars return to the General Fund.

Neighborhood development and housing studies funded

The law funds local development and planning. It gives $1.6 million for grants through the West North Avenue Development Authority. It provides $50,000 to the Huntington City Community Development Corporation. It funds a $280,000 master plan for the proposed Gwynns Falls State Park. It also provides $75,000 for a state study on housing industry apprenticeships.

Repairs in Allegany County

Maryland provides $12 million for infrastructure repairs in Allegany County. The money is available right away to support local projects.

West North Avenue fund restored

The law re‑appropriates $1,200,851 to the West North Avenue Development Authority Fund. This restores capital that reverted during the FY2025 closeout. The money is available now to support the development work.

College aid audits tied to funding

Parts of the higher education budget are on hold until MHEC submits required reports. Holds include $250,000 (due July 15, 2026) on Guaranteed Access and Teaching Fellows errors; $100,000 (due Aug 15, 2026) on audit findings and backlog checks; $50,000 (due Dec 10, 2026) on Next Generation Scholars; and $1,000,000 (due Dec 1, 2026) with detailed grant and scholarship spending for Fiscal 2020–2025. Committees have 45 days to review. Blocked funds cannot be moved and revert if reports are not sent.

Grants for youth and school programs

The law funds youth and school‑based services. It gives $500,000 to the Latin American Youth Center, $250,000 to the Maggie McIntosh School Arts Fund for Baltimore City schools, and $150,000 to Change The Conversation for work with Frederick County Public Schools. It also supports Community Advocates for Family & Youth and Child Resource Connect. Unused funds return to the General Fund.

Grants for youth, arts, and libraries

The law funds local programs: $30,000 for Board Room Chess, $25,000 for Arts for Learning, and $25,000 for OhanaHC. It provides $50,000 for the Frederick Youth Center and $37,500 for End Time Harvest Ministries. It adds $7,250 for a Family Literacy Pilot and $250,000 for Baltimore’s Sail 250. It also provides $220,000 for Montgomery County library retirement costs. Any unspent grant funds must return to the General Fund, or be canceled where stated.

More support for college aid and programs

The law keeps the college aid system running and adds student program support. It provides $181,789 to extend the MDCAPS aid‑processing contract. It adds $250,000 to make the Higher Education Commission whole for a prior shortfall. Next Generation Scholars gets $450,000, and UMCP’s Judge Alexander Williams Jr. Center gets $250,000. Unused grant funds must return to the General Fund.

Service and Civic Innovation payroll support

The Department of Service and Civic Innovation gets $115,206 in General Funds and $4,982 in Federal Funds to cover staff pay gaps. The Maryland Corps Program gets $152,392 in General Funds and $14,218 in Special Funds for its salary shortfalls. The funds are available now for fiscal 2026.

Small grants for kids’ programs

Maryland funds two youth programs. Horizon Day Camp gets $75,000. Team Thrill Youth Sports Organization gets $20,000. Any unused money returns to the General Fund.

Small grants for Outward Bound and HBCUs

The state gives $150,000 to the Chesapeake Bay Outward Bound School for student programs. It also funds a new HBCU liaison at the Higher Education Commission with $130,000 and one position. Unused funds go back to the General Fund.

Small grants for youth education and sports

Maryland gives $100,000 to Glenwood Academy. It also gives $100,000 to the Water's Edge Museum for a Chesapeake Bay youth leadership program, and $100,000 to the AthLife Foundation. Baltimore City Recreation and Parks gets $100,000 for portable flood lighting on youth fields. Unused funds return to the General Fund.

Study state IT and cyber pay

The law provides $250,000 for an independent study of pay, hiring, and retention for State IT and cybersecurity staff. The study starts only if HB 1335 is enacted. Results can guide future workforce decisions.

Support for UMCP sustainability partnership

The law gives $100,000 to the University of Maryland, College Park for the Partnership for Action Learning in Sustainability. The program supports local planning and sustainability projects. Unused funds return to the General Fund.

Workforce Pell setup and aerospace study

The state provides $300,000 to help set up the Workforce Pell Grant Program if SB 509 becomes law. Prince George’s County receives $250,000 to study starting an Aerospace Aviation program at Prince George’s Community College. Any unused funds go back to the General Fund.

Funding for cannabis business incubator

The law provides $2 million for the Cannabis Incubator Project. The Maryland Cannabis Administration uses the money for grants or subsidies that help cannabis entrepreneurs. Households do not get direct payments.

Grants for regional business and AI jobs

The state funds the Talent Capital Initiative at the Metropolitan Washington Council of Governments to support a regional AI workforce platform. The bill text lists the amount as $100,000 or $200,000. It also provides $150,000 to the Greater Washington Board of Trade Foundation for its Business Growth Initiative. Unused funds return to the General Fund.

Grants for tech and innovation companies

The state sets aside $3 million for grants to regenerative medicine and advanced manufacturing firms. Companies can use funds for buildings, infrastructure, and equipment. It also funds $500,000 for the Baltimore Tech Hub Consortium and $420,000 for UpSurge’s UpRise program. Unused funds return to the General Fund.

Lottery funds for local projects

The law gives $27 million from the State Lottery Fund to the Maryland Stadium Authority for named projects. $18 million goes to a mixed‑use plan with a soccer stadium at the University of Maryland. Other grants fund Blue Line corridor work, the Addison Park project, Artspace in Mount Rainier, and two town community centers. Unused money must return to the General Fund.

More support for DBE certifications

The state provides $4,401,279 for Disadvantaged Business Enterprise (DBE) re‑evaluations. $3,051,279 covers technical and special fees, and $1,350,000 funds contracts. This supports certification work for small and disadvantaged businesses.

Extra payroll funds for tourism and arts

The law fills payroll shortfalls at tourism and arts agencies for FY 2026. It adds $15,010 for the Office of the Assistant Secretary, $136,637 for the Office of Tourism Development, $62,000 for Marketing and Communications, and $65,000 for the Maryland State Arts Council. These funds are available immediately after passage and cover salary and fringe costs.

More PSC staff for energy cases

The Public Service Commission adds staff to handle more utility cases and grid connections. The law funds an interconnection ombudsperson and FERC/PJM support with $436,472. It adds two auditors ($191,009), a senior public utility law judge ($138,893), and four staff attorneys ($235,937 + $235,937). It also funds a program manager for energy planning ($103,431). This helps the regulator move cases faster and improve oversight.

Complete College program ends, funds cut

The Complete College Maryland Program ends. The state cuts $57,325 from its budget and $250,000 from related grants for FY2026. Students who used those grants may lose support.

Cuts to adult school and job training

The Adult High School External Program budget drops by $400,000 for FY2026. DHS also reduces federal funds by $679,639 for noncustodial parent employment and training. DHS may spread that cut across programs. Adult learners and job seekers may see fewer or smaller services.

No extra pay for second office

People who hold a second public office cannot get extra pay from these funds for that second role. They can still get expense reimbursements for meetings or travel.

Nonprofits must show state registration

Nonprofits cannot receive state grant or contract funds unless they prove registration or exempt filing with the Secretary of State. For grants, proof is required when signing. For other contracts, proof is required at signing and yearly. Nonprofits that do not solicit in Maryland may certify they are not required to register.

Cap on certain state operating grants

The law limits operating grants‑in‑aid from a Secretary’s Office special fund to no more than $7,201,128. Extra funds are allowed only to match unexpected federal money or to start or increase a grantee. Spending above the cap needs notice to budget committees and a 45‑day review.

Health and labor funds held until reports

Behavioral Health has $500,000 withheld and released in $125,000 steps after quarterly letters confirm monthly uploads of non‑Medicaid reimbursement data. The first letter is due July 31, 2026 and must cover January 1 to June 30, 2026; letters continue through April 30, 2027. The Uninsured Employers’ Fund cannot spend $500,000 until it submits a report by October 1, 2026; if no report, the money reverts to the General Fund.

Juvenile services funding trimmed for 2026

The budget reduces several Department of Juvenile Services lines. Equipment replacement drops by $350,000. Non‑residential per diem funding falls by $433,785. A youth drug treatment center is cut by $50,000. These cuts take effect immediately for fiscal 2026.

MDE funding cut if penalty powers expand

The Water and Science Administration loses $250,000 if a law expands MDE’s civil and administrative penalty authority. The cut happens only if that penalty expansion becomes law.

Small cuts to parks and farm programs if bills pass

Several small cuts happen only if other bills pass. Outdoor Recreation, Fishing and Boating, and DNR/DAL programs see reductions between $100,000 and about $333,000 each. Triggers include changes to transfer‑tax formulas, Waterway Improvement Fund mandates, native plants and Healthy Soils mandates, and urban agriculture grant mandates.

State pays SNAP fines and legal fees

The state pays penalties and legal fees. It sets aside $27.96 million for federal penalties tied to SNAP payment errors. It funds $1.5 million to pay local fines related to delayed forensic patient admissions. It also pays $225,000 in attorney fees in a digital ad tax case. These are state costs, not household bills.

Cut to health department cybersecurity funds

The health department’s network security budget is cut by $6.92 million for 2026. This aligns funding with last year’s actual spending.

IT project funding shifts and cuts

The elections IT project uses carryforward IT funds instead of $4,772,235 from the General Fund. The law also cuts $3,000,000 for expedited major IT projects. These are funding source changes and reductions, not service changes for households.

Less federal money if 911 law expands

Federal funds drop by $3,232,157 if a law expands how the 911 Trust Fund can be used for emergency management operations. This change happens only if that separate bill passes.

Public health ARPA funds scaled back

Public health budget lines are trued up to actual spending. Federal ARPA funds drop by $337,611 for the Deputy Secretary for Public Health Services and $803,931 for Preparedness and Response. The state also cuts $16,867,522 from prior‑year Behavioral Health investments. These are fiscal 2026 adjustments and take effect now.

Contingent cuts to colleges and training

Some funding is cut only if other laws pass. Baltimore City Community College loses $713,762 if its formula is lowered from 68.5% to 67.5%. Listed state colleges lose $6,788,391 if a decoupling bill passes. The Native Plants program at UMD is cut $150,000 if its mandate is repealed. The GAPS apprenticeship program loses $360,000 if its mandate is reduced.

Plan needed before Freestate funds spent

The state holds $250,000 for the Freestate ChalleNGe Academy until a report is sent to budget committees. The report is due September 1, 2026. Committees have 45 days to review. If the report is not sent, the money goes back to the General Fund.

Small trims to K-12 aid and library

Out‑of‑County Aid to Education is cut by $250,000 for FY2026. The State Library’s retirement funding line is reduced by $61,370. These changes take effect now.

More state tax audits and collections

The Comptroller receives $2,310,104 to hire auditors, revenue examiners, and tax attorneys. The money pays salaries and benefits to expand audit and collections work. Some taxpayers may face more audits. Tax rules do not change.

Budget office staff funding shifts

The state realigns staff funding inside the budget office. Executive Direction funding falls by $690,329 and salary objects fall by $1,527,349. Two other lines drop $50,940 and $145,978 to move positions to the finance division. These are internal changes and do not change household benefits.

Cuts to audits staff and court pay

The Office of Legislative Audits loses $833,856 and 5 positions starting July 1, 2026. The Judiciary’s funds for pay enhancements and merit increases are also reduced in fiscal 2027. The Chief Judge can spread the Judiciary reductions across programs.

Facilities and operations budget tweaks

DGS moves $1,073,005 from procurement to external affairs. Video lottery operations fall by $155,803 to match current costs. Facilities Security drops $77,220 as a position moves to the Governor’s Office. These are internal agency budget changes.

Conditional cuts to workforce programs

The law cuts certain job program budgets only if matching mandate‑reduction laws pass. It cuts $360,000 from the GAPS apprenticeship program. It cuts $150,000 from Career Pathways for Healthcare Workers and $150,000 from a Prince George’s re‑entry jobs incentive. If the linked laws do not pass, these cuts do not happen.

Energy help admin cut; emissions study funded

The budget cuts $700,000 from Home Energy Program contracts. This may reduce admin help for low-income energy bill aid. It also moves $270,000 to the Comptroller to study the full cost of greenhouse gases. These are budget shifts, not eligibility changes.

Senior services grants and funding shifts

The law sends $1,300,000 to the same NORC grantees and amounts as in fiscal 2026. It also adjusts federal funds for the Department of Aging. Four vacant positions are removed, a food program shifts to DHS, and two new federal awards add $940,000 for access and caregiver navigation. The net federal change is a small increase.

Faster MBE certification and program review

The state holds $100,000 until DoSEM proves MBE certification averages six months or less and files a report. DoSEM must report within 30 days of hitting four to six months, and committees get 45 days to review. It also withholds $250,000 until Commerce submits a five-year use report by October 30, 2026. Funds are canceled if reports are not filed.

More Jobs credit funding source swap

The law moves $16,135,117 for the More Jobs program from the General Fund to the Tax Credit Reserve Fund. Funding for credits remains. The change takes effect now for fiscal 2026.

Agriculture department must fix audit issues

The law holds $250,000 until the Agriculture Department, with DGS, reports by July 1, 2026 on fixes to two repeat audit findings. The report must describe new systems, processes, and proof they are in use. Committees have 45 days to review. If the report is not filed, the funds revert to the General Fund.

Budget clean‑up and reporting deadlines

The Comptroller must report by July 15, 2026 on reversions to the Dedicated Purpose Account, or held funds revert. Several agencies each lose $100,000 if they do not submit all fiscal 2026 budget amendments by October 31, 2026. The budget realigns DBM programs and funding sources, and abolished position IDs cannot be reassigned to different jobs. These steps tighten fiscal controls and staffing rules.

Budget office funds tied to ARPA and audit fixes

The law holds $100,000 until DBM reports ARPA State Fiscal Relief Fund spending by September 15, 2026. It withholds $250,000 until agencies with repeat audit findings meet with the State CISO and follow-ups are reported (SCISO report due February 1, 2027; OLA report due May 1, 2027). Another $100,000 for DBM’s HR office stays held until repeat audit findings are corrected by November 1, 2026 and OLA confirms. Committees have 45 days to review; funds can revert if conditions are unmet.

Cannabis special funds may replace general funds

The law reduces two General Fund lines by $2,279,883 and $2,720,117. These amounts become Special Fund spending only if another law lets the Cannabis Business Assistance Fund pay for agency operations. Without that law, the General Fund reductions stand and the Special Funds do not replace them.

Cap on new state jobs, with reports

The Board of Public Works may allow no more than 100 additional positions above the total authorized on July 1, 2026. Positions paid fully by non‑State funds can be exempt if certified and ended when that funding stops. By June 30, 2027, the Budget Secretary must report on these positions and show total authorized FTEs and changes in the Governor’s Fiscal 2028 Budget Books.

Climate office shifts to energy fund if authorized

The law cuts $125,051 from the Office of Policy’s General Fund and makes $125,051 in Special Funds available only if a law expands the Strategic Energy Investment Fund to climate programs. The change happens only after that enabling law is enacted.

Energy funds shift if SEIF law passes

Some energy and environment funding changes depend on a SEIF expansion law. Miscellaneous nonprofit grants lose $1,500,000 if the SEIF law passes. The Power Plant Assessment and Emergency Support Services lines see General Fund cuts, but some Special Funds become available only if the SEIF law is enacted. These shifts happen only if that separate SEIF legislation becomes law.

Energy office funds held for reports

The law blocks $250,000 of the Maryland Energy Administration’s admin funds until it submits a funding-by-program report with the fiscal 2028 budget. It also holds $100,000 until MEA files a spending report by September 30, 2026 for fiscal 2025 and 2026. Budget committees have 45 days to review. If reports are not submitted, the held funds are canceled.

Environmental funds tied to actions

The law withholds $250,000 from the environment department until it submits a plan to standardize septic system rules by December 1, 2026. It also makes $250,000 for water and science work available only if a separate law expands the agency’s penalty authority. If requirements are not met, funds revert or are not available.

Hearing costs moved to state hearings office

On July 1, 2026, all funds budgeted for administrative hearings are transferred to the Office of Administrative Hearings. After the transfer, those dollars cannot be used for other purposes. This centralizes how the state pays for hearings.

Interpreter licensing and staffing reports required

The law holds $50,000 until the Office of the Deaf and Hard of Hearing confirms it published final sign language licensing rules. It holds another $50,000 until two progress reports on licensing are sent (due July 1, 2026 and December 15, 2026). A third $50,000 is held until a staffing vacancies report is sent by August 15, 2026. Committees have 45 days to review; funds revert if reports are missing.

Monthly spending and agreement reports required

Budget books must count contractual employees accurately, and DBM must provide a one‑page org chart for each agency. Any across‑the‑board cuts must be shown by three‑digit agency code and fund. By August 1, 2026, agencies and public colleges must report fiscal 2026 interagency agreements over $100,000; DBM reports by December 1, 2026. Starting August 15, 2026, health, education, and human services leaders send monthly spending reports for Medicaid reimbursements, nonpublic special education placements, and foster care. The Comptroller will track Workers’ Compensation flows in a new ledger, with monthly reports from IWIF.

Small fund swaps to keep programs running

The budget moves money between special funds and the General Fund to cover shortfalls and service charges. Examples include $7.96 million for the State Archives, $264,856 for Artistic Property, and $13,628 for IT charges. It also swaps $500,000 with the State Boat Act Fund and realigns $31,084 in SDAT’s Charter Unit for salaries and benefits. These changes shift which fund pays, not total services.

State facilities plan and procurement fixes

The law holds $100,000 until a December 1, 2026 report assesses state facilities and real property with recommendations. It also holds $100,000 from DGS and $250,000 from the Office of State Procurement until all repeat audit findings are fixed by November 1, 2026 and OLA confirms. Committees have 45 days to review. Funds can revert if requirements are not met.

Stronger statewide cybersecurity reporting required

The law withholds $500,000 from DBM and $500,000 from DoIT until each submits a confidential, consolidated cybersecurity governance report by December 15, 2026. Reports must include access checks, malware protections, multi‑factor reviews, personal data protections, and cloud service controls. Budget committees have 45 days to review. Funds revert if reports are not submitted.

Tighter budget amendment and IT project rules

The Board of Public Works can approve increases to certain appropriations when needed for public safety, health, or welfare. New budget amendments that start major IT projects must include a formal IT Project Request. Amendments for a closed fiscal year must reach the General Assembly by October 31 of the next year.

Tighter rules on big budget changes

During fiscal 2027, large agency‑college agreements over $500,000 need approval from the Budget Secretary. Any amendment that raises a fund by $100,000 or more must go to legislative staff and wait up to 45 days. Amendments cannot restore funds the Assembly denied, start unauthorized capital projects, or raise a project’s scope beyond set limits. Federal fund boosts of $100,000 or more need proof and certification. No one may spend money from a proposed amendment before the Governor approves it. General funds not spent within 12 months after fiscal 2026 end must revert to the State.

Transit must report curb space workgroup

The law holds $150,000 until MDOT submits a report on the Workgroup on Curb Space Management by September 1, 2026. The report must confirm the group is formed, list meeting dates, and summarize work done and planned. Committees have 45 days to review. If no report is filed, the money is canceled.

Victim aid and police funds tied to compliance

The law requires a VOCA funding report by November 1, 2026 before $100,000 for administration is spent. It withholds $500,000 for a Baltimore youth prosecution grant until an outcomes report is sent by October 1, 2026. Police aid of $47,132,583 is only released to agencies that attest they follow the sexual assault kit victim notification protocol and share required info within 15 days. It also holds $100,000 until the Criminal Injuries Compensation Board’s fiscal 2026 report is submitted by November 1, 2026. Committees have 45 days to review; held funds can revert if reports are not filed.

Women’s prerelease facility planning must be confirmed

The law holds $500,000 until the state confirms the location for a prerelease unit for incarcerated women. The letter must be sent within 30 days of choosing the site and show planning, capacity, and a timeline. Budget committees have 45 days to review. Funds may be canceled if the letter is not submitted.

Emergency and resiliency funding shifts

Some Maryland Emergency Management funding now depends on other laws. General funds drop by $304,583 if SEIF resiliency uses are enacted, and federal funds drop by $1,165,530. Special funds of $1,470,113 become available if SEIF resiliency uses are enacted. Special and federal funds of $3,232,157 each shift if a law expands 911 Trust Fund uses to cover operations. The law also provides $132,437 to the Resilient Maryland Revolving Loan Fund and $500,000 to Easton Utilities for an energy storage project.

Park land letter and $7.953M for water/sewer

DNR cannot spend $500,000 for park administration until it certifies the Port of Deposit State Historical Park land transfer. The law also directs $7.953 million to State Water and Sewer Infrastructure Improvement Fund projects run by Maryland Environmental Service. Unused restricted funds cannot be moved and are canceled. Budget committees have 45 days to review the land‑transfer letter.

Behavioral health: ASO transition, workforce, timely payments

The law holds $100,000 unless MDH corrects repeat audit findings by November 1, 2026 and OLA confirms. It holds $100,000 until Behavioral Health reports on the new Administrative Services Organization transition by October 1, 2026, including provider enrollments, claims, dollars, and issues. Another $100,000 is held until a workforce plan is filed by November 1, 2026 with analyses, five‑year costs, and funding sources. It also withholds $100,000 until MDH reports by January 1, 2027 on whether payments to local nonprofit Core Service Agencies were on time and how delays will be fixed. Committees have 45 days to review; funds revert if reports are not submitted.

Developmental Disabilities: spending and use reports

The law holds $500,000 until monthly and summary Developmental Disabilities Community Services spending reports begin, with the first due September 1, 2026. It holds another $500,000 until a utilization trends report is submitted by September 15, 2026 comparing LTSS to the legacy system and reviewing FY 2025–2027 budgets and controls. A separate $500,000 is held until DDA files two cost‑containment reports due December 1, 2026 and April 1, 2027 with participant counts, savings, wage comparisons, rate changes, and policy enforcement updates. Some funds can be released in increments after reports; committees have 45 days to review. Funds revert if reports are not submitted.

Health boards reports and shifting funds

The law holds $100,000 until the Counselors and Therapists board, with MDH, reports by September 1, 2026 on implementing OPEGA recommendations. It holds $100,000 until Health Professional Boards report by December 1, 2026 on special fund transfers in 2021, 2024, and 2025 and their impacts. OPHI has a $2,000,000 General Fund cut and a $2,000,000 Special Fund added only if a separate law allows transfers from the State Board of Physicians’ excess balance. A $500,000 General Fund cut to Community Services also depends on a law allowing excess Board of Counselors funds to be transferred. Committees have 45 days to review; held funds are canceled if reports are not submitted.

Medicaid administration must fix audit problems

The law holds $250,000 unless Medicaid’s Medical Care Programs Administration corrects all repeat audit findings by November 1, 2026. The Office of Legislative Audits must confirm the fixes in a report. Budget committees have 45 days to review. If the report is not submitted, the funds revert to the General Fund.

Public health funds change if new laws pass

Two health funding lines depend on other health laws. Family Health and Chronic Disease Services loses $1,580,000 if a law lowers the tobacco‑reduction funding mandate. Another law would shift $1,000,000 from General Funds to Special Funds by expanding how the Advance Directive Program Fund can be used. These changes occur only if the related health laws are enacted.

Housing funds tied to vacancy progress

$3 million in DHCD admin funds is blocked until a report on reducing Baltimore City vacancies is filed by September 1, 2026. The committees have 45 days to review. If no report is filed, the money is canceled.

Property assessment systems and appeals go digital

The law holds $50,000 of SDAT’s IT funds until a Cloud Revenue Integrated System report is sent by November 1, 2026. It also holds $50,000 for Property Tax Assessment Appeals Boards until a report on moving from paper to electronic processes is submitted by September 1, 2026. Committees have 45 days to review. If reports are not submitted, the funds revert.

Pre‑K local costs and state fund

The law sets up a $14.96 million special fund for fiscal 2026 Pre‑K. MSDE may bill local governments for their local share of private Pre‑K costs. This starts immediately and shifts how state and local funds are aligned.

More staff for state audit unit

The law adds $216,971 now for the state’s audit and finance compliance unit. $153,449 is for pay and benefits. $63,522 buys needed equipment. The money supports enforcement of 2026 legislation.

Tighter controls on agency spending

The budget chief can set monthly or seasonal spending limits for agencies. Some restricted funds are held in a contingency reserve until released. Agencies can move money by budget amendment, including extra federal or special receipts. Building and indirect cost charges can be shifted to the agencies that use them. Computer service funds (Object 0882) must pay the Comptroller’s data center, and DBM can move those funds among agencies.

Shifts in education funding sources

The Teacher Development and Retention Program shifts $6 million from the General Fund to a Special Fund, with no net change in total dollars. The state also swaps $27.6 million from the Higher Education Investment Fund to the General Fund to fix a negative balance. These changes take effect now for FY2026 and keep programs running without adding new money.

Study on land-value tax near stations

$150,000 is held until Planning studies split-rate or land value taxes near selected rail stations. SDAT must provide data by August 1, 2026. The report is due December 1, 2026. The money reverts if no report is filed.

Sponsors & Cosponsors

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 436 • No: 375

Senate vote • 3/30/2026

Third Reading Passed

Yes: 38 • No: 6 • Other: 1

Senate vote • 3/30/2026

Conference Committee Report Adopted

Yes: 38 • No: 6 • Other: 1

House vote • 3/30/2026

Third Reading Passed

Yes: 102 • No: 13 • Other: 12

House vote • 3/26/2026

Floor Amendment {843724/1 (Delegate Chisholm) Rejected

Yes: 36 • No: 97 • Other: 6

House vote • 3/26/2026

Floor Amendment {633124/1 (Delegate Arikan) Rejected

Yes: 23 • No: 97 • Other: 18

House vote • 3/26/2026

Third Reading Passed

Yes: 114 • No: 22 • Other: 3

House vote • 3/25/2026

Floor Amendment {853927/1 (Delegate Hartman) Rejected

Yes: 32 • No: 97 • Other: 8

Senate vote • 3/18/2026

Third Reading Passed

Yes: 40 • No: 6

Senate vote • 3/17/2026

Floor Amendment {133129/1 (Senator Corderman) Rejected

Yes: 13 • No: 31 • Other: 1

Actions Timeline

Approved by the Governor - Chapter 4
4/8/2026
Passed Enrolled
3/30/2026Senate
Third Reading Passed (102-13)
3/30/2026House
Conference Committee Report Adopted
3/30/2026House
Third Reading Passed (38-6)
3/30/2026Senate
Conference Committee Report Adopted (38-6)
3/30/2026Senate
House advisors: (Delegates Ghrist and Acevero)
3/30/2026Senate
House Conference Committee Appointed (Delegates Barnes, Kaiser, Smith, Watson and Shetty)
3/30/2026Senate
House Refuses Recede
3/30/2026Senate
House advisors: (Delegates Ghrist and Acevero)
3/27/2026House
House Conference Committee Appointed (Delegates Barnes, Kaiser, Smith, Watson and Shetty)
3/27/2026House
House Refuses Recede
3/27/2026House
Senate advisors: (Senators Bailey, Zucker and Augustine)
3/27/2026House
Senate Conference Committee Appointed (Senators Guzzone, McCray, King, Hettleman and Corderman)
3/27/2026House
Senate Requests House Recede
3/27/2026House
Senate Refuses Concur House Amendments
3/27/2026House
Senate advisors: (Senators Bailey, Zucker and Augustine)
3/27/2026Senate
Senate Conference Committee Appointed (Senators Guzzone, McCray, King, Hettleman and Corderman)
3/27/2026Senate
Senate Requests House Recede
3/27/2026Senate
Senate Refuses Concur House Amendments
3/27/2026Senate
Third Reading Passed (114-22)
3/26/2026House
Floor Amendment {843724/1 (Delegate Chisholm) Rejected (36-97)
3/26/2026House
Floor Amendment {633124/1 (Delegate Arikan) Rejected (23-97)
3/26/2026House
Second Reading Passed with Amendments
3/25/2026House
Floor Amendment {853927/1 (Delegate Hartman) Rejected (32-97)
3/25/2026House

Bill Text

Enacted
4/8/2026
PDF
Enrolled
3/30/2026
PDF
First Reading
3/17/2026
PDF
Third Reading
3/17/2026
PDF

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Back to State Legislation

How does this bill affect your finances?

Bill Overview

Analyzed Economic Effects

High Impact

More Autism Waiver services for students

More child care scholarships

More funding for disability services

More Medicaid mental health payments

More support for foster and kinship care

Heat pump help for lower income homes

Lawyers for renters facing eviction

More child care and pre-K support

Seafood industry loans if fund created

Big funding to lower insurance premiums

Cuts to SNAP, SUN Bucks, and cash aid

Medicaid provider funding trimmed, with triggers

Rainy day fund deposit canceled

Medium Impact

More help with home energy bills

DDA: More support hours and protections

Faster, more accurate SNAP and cash help

Keeping Medicaid long‑term care running

More funding for temporary disability aid

More Medicaid help and smoother payments

More transparency in child welfare services

Protects disability services, adds behavioral health help

Smoother Medicaid sign‑up and renewals

Stronger SNAP help and school meals

Property tax relief for homeowners

BOOST: Extra aid, rules, and security grants

COLA and steps for listed state jobs

Converting long‑term contractors to jobs

Higher pay for state executives

Pay boosts for school and college staff

FY2027 state tax credit payments

Funds added for business tax credits

Corrections funding tied to oversight reports

Juvenile Services gets supplemental funds

More funds for defense and claims

Planning and neighborhood projects get funds

Stronger budget forecasts and health reports

Health department overtime and planning

Keeping roads, ports, and MVA running

More funding for transit and travel

More oversight of MDOT spending and debts

More staff to help taxpayers

Medicare Advantage incentives report and hold

More funding for trauma and doctors

More oversight of hospital overstays and placements

More money for housing and neighborhoods

Community colleges get $438.9 million

Funding for testing and school oversight

New grants for tech and re‑entry jobs

Clean energy financing fund expands

Local aid and tax distributions funded

Budget backstops and contingency fund boost

More energy efficiency help statewide

More money for state IT projects

More funding for clean energy planning

Up to $42 million for college research

Economic development fund gets $16 million

Crime victim compensation funds reduced

Cuts to benefit and energy help call centers

Cuts to DHS call center and Senior Call Check

Medicaid and CHIP funding reduced

Less aid for police loans and school

Less funding for Community College Promise

Police aid and transit funds tied to plans

Healthcare cuts tied to other laws

Prince George’s Blue Line funding removed

Less funding for historic rehab credit

BOOST scholarships: new priorities and caps

State worker and retiree health fund changes

College funding limits and targeted aid

School safety money and MSDE oversight

Clean energy funds with conditions

Low Impact

Fix for Development Finance funds

More help for Baltimore child support

More security staff and upgrades