MarylandSB 08282026 Regular SessionSenate

State Finance - Delinquent Federal Funds (Federal Obligations Enforcement Act)

Sponsored By: Katie Fry Hester (Democratic)

Signed by Governor

State Government - Agencies, Offices, and OfficialsState Government - Regulations and ProceduresAttorney GeneralBudget and Management, Department ofComptrollerDebt Collection -see also- Attachments and GarnishmentsFederal GovernmentGovernorJurisdictionLiensPublic Works, Board ofRevenue and Taxes -see also- (specific tax)

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Bill Overview

Analyzed Economic Effects

2 provisions identified: 2 benefits, 0 costs, 0 mixed.

Maryland gains tools to collect federal debts

Beginning July 1, 2026, Maryland's Board of Public Works can find federal funds overdue by majority vote. This applies when the federal government fails to follow court decisions upholding spending approved by Congress. The Board must refer those funds to the state's Central Collection Unit, which must consult the Attorney General. The unit can collect the money, place liens on federal property in Maryland, and direct the Comptroller to withhold state payments to the federal government. The Comptroller may withhold those payments, and collections cannot exceed the total overdue amount.

Maryland reserves authority over federal land

Beginning July 1, 2026, Maryland reserves legal authority over land in the state that the federal government holds or leases. This applies when federal funds owed to Maryland have been found overdue. The federal government must also be failing to follow court decisions upholding spending approved by Congress. This rule does not provide a direct household payment or benefit.

Sponsors & Cosponsors

Sponsor

  • Katie Fry Hester

    Democratic • Senate

Cosponsors

  • Alonzo T. Washington

    Democratic • Senate

  • Dalya Attar

    Democratic • Senate

  • Malcolm Augustine

    Democratic • Senate

  • Benjamin Brooks

    Democratic • Senate

  • Arthur Ellis

    Democratic • Senate

  • Brian J. Feldman

    Democratic • Senate

  • Dawn Gile

    Democratic • Senate

  • Guy Guzzone

    Democratic • Senate

  • Kevin M. Harris

    Democratic • Senate

  • Shaneka Henson

    Democratic • Senate

  • Shelly Hettleman

    Democratic • Senate

  • Mary-Dulany James

    Democratic • Senate

  • Cheryl C. Kagan

    Democratic • Senate

  • Clarence K. Lam

    Democratic • Senate

  • Karen Lewis Young

    Democratic • Senate

  • Sara Love

    Democratic • Senate

  • C. Anthony Muse

    Democratic • Senate

  • Jim Rosapepe

    Democratic • Senate

  • William C. Smith

    Democratic • Senate

  • Charles E. Sydnor

    Democratic • Senate

  • Jeff Waldstreicher

    Democratic • Senate

  • Ron Watson

    Democratic • Senate

Roll Call Votes

All Roll Calls

Yes: 164 • No: 128

House vote • 4/13/2026

Third Reading Passed

Yes: 92 • No: 33 • Other: 15

Senate vote • 3/19/2026

Third Reading Passed

Yes: 32 • No: 13

Senate vote • 3/18/2026

Floor Amendment {103520/1 (Senator Ready) Rejected

Yes: 13 • No: 28 • Other: 5

Senate vote • 3/18/2026

Floor Amendment {543628/1 (Senator Gallion) Rejected

Yes: 15 • No: 26 • Other: 5

Senate vote • 3/18/2026

Floor Amendment {603425/1 (Senator Ready) Rejected

Yes: 12 • No: 28 • Other: 6

Actions Timeline

  1. Approved by the Governor - Chapter 248

    4/28/2026
  2. Returned Passed

    4/13/2026Senate
  3. Third Reading Passed (92-33)

    4/13/2026House
  4. Second Reading Passed

    4/9/2026House
  5. Motion Special Order until 04/09 (Delegate Pippy) Adopted

    4/8/2026House
  6. Favorable Adopted

    4/8/2026House
  7. Favorable Report by Appropriations

    4/8/2026House
  8. Hearing 3/31 at 1:00 p.m.

    3/26/2026House
  9. Referred Appropriations

    3/20/2026House
  10. Third Reading Passed (32-13)

    3/19/2026Senate
  11. Second Reading Passed with Amendments

    3/18/2026Senate
  12. Floor Amendment {853825/1 (Senator Hester) Adopted

    3/18/2026Senate
  13. Floor Amendment {543628/1 (Senator Gallion) Rejected (15-26)

    3/18/2026Senate
  14. Floor Amendment {603425/1 (Senator Ready) Rejected (12-28)

    3/18/2026Senate
  15. Floor Amendment {103520/1 (Senator Ready) Rejected (13-28)

    3/18/2026Senate
  16. Favorable Adopted

    3/18/2026Senate
  17. Motion Special Order until 3/17 (Senator Ready) Adopted

    3/13/2026Senate
  18. Favorable

    3/13/2026Senate
  19. Favorable Report by Budget and Taxation

    3/13/2026Senate
  20. Hearing 3/04 at 1:00 p.m.

    2/11/2026Senate
  21. First Reading Budget and Taxation

    2/6/2026Senate

Bill Text

  • Enacted

    4/28/2026

  • Third Reading

    3/18/2026

  • First Reading

    2/6/2026

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