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Bill > HB392


MD HB392

MD HB392
Budget Reconciliation and Financing Act of 2026


summary

Introduced
01/21/2026
In Committee
01/21/2026
Crossed Over
Passed
Dead
04/13/2026

Introduced Session

2026 Regular Session

Bill Summary

Altering or repealing certain required appropriations; authorizing the use of certain funds for certain purposes; authorizing, requiring, or altering the distribution of certain revenue; altering eligibility for certain programs; providing certain modifications to federal adjusted gross income of an individual or federal taxable income of a corporation for Maryland income tax purposes relating to certain depreciation deductions allowed under the federal income tax; etc.

AI Summary

This bill modifies various state appropriations, revenue distributions, and program eligibility for fiscal years 2024 through 2031. * **Maryland Healthy Soils Program:** Receives at least $500,000 annually for fiscal years 2024-2026, and at least $400,000 annually for fiscal years 2027-2028. * **Maryland Native Plants Program:** Receives $150,000 for a University of Maryland Extension agent and $100,000 for program administration for fiscal year 2025 and fiscal year 2026. * **Cannabis Business Assistance Fund:** Funds can be used for grants and loans to small, minority-owned, or women-owned businesses for license application assistance, operating expenses, and training. For fiscal years 2027-2029, up to $5,000,000 annually is allocated for operating costs of the Department of Social and Economic Mobility. * **Tri-County Council for Southern Maryland:** Receives $1,000,000 annually from the Cigarette Restitution Fund for fiscal years 2024-2026, and $700,000 annually for fiscal year 2027 and thereafter, to fund the Southern Maryland Agricultural Development Commission. * **Lacrosse Opportunities Program:** May receive at least $40,000 annually for fiscal year 2014 and each fiscal year thereafter. * **Coordinated Community Supports Partnership Fund:** Receives $80,000,000 in fiscal year 2027 and each fiscal year thereafter to support holistic behavioral health needs for students. * **Community College Funding:** For fiscal years 2027-2029, the State share for community colleges may not increase by more than 3% over the previous fiscal year. * **Joseph A. Sellinger Program:** For fiscal years 2023-2026, Baltimore City Community College receives funding based on 68.5% of the State Funds per full-time equivalent student at 4-year institutions. For fiscal year 2027 and thereafter, this percentage is adjusted to 67.5%. Specific appropriations are listed for various private institutions for fiscal years 2027-2029. * **Maryland Community College Promise Scholarships:** Receives at least $15,000,000 annually through fiscal year 2025, at least $13,500,000 for fiscal year 2026, and at least $12,500,000 for fiscal year 2027 and thereafter. * **Maryland Loan Assistance Repayment Program for Police Officers and Probation Agents:** Receives at least $500,000 for fiscal year 2025, at least $2,000,000 for fiscal year 2026, and at least $500,000 for fiscal year 2027 and thereafter. * **Maryland Police Officers and Probation Agents Scholarship Program:** Receives at least $500,000 for fiscal year 2025, at least $2,000,000 for fiscal year 2026, and at least $500,000 for fiscal year 2027 and thereafter. * **Advance Directive Program Fund:** In fiscal year 2027 only, $1,000,000 may be used for maternal and child health quality initiatives. * **Assisted Outpatient Treatment Program:** Counties will reimburse the Department of Health for program costs starting at 25% in fiscal year 2028 and increasing to 100% by fiscal year 2031. * **Tobacco Use Reduction Programs:** Receive at least $18,250,000 annually for fiscal years 2022-2026, and at least $17,520,000 annually for fiscal year 2027 and thereafter. * **Board of Physicians Fund:** In fiscal year 2027 only, $2,000,000 may be used to support programs in the Office of Population Health Improvement. * **State Board of Professional Counselors and Therapists Fund:** In fiscal year 2027 only, $500,000 may be used to support programs in the Behavioral Health Administration. * **Public Safety Apprenticeship Program:** Receives at least $750,000 annually for fiscal years 2021-2025, and at least $390,000 annually for fiscal year 2026 and thereafter. * **Career Pathways for Health Care Workers Program:** Receives at least $1,000,000 annually through fiscal year 2024, at least $500,000 for fiscal years 2025-2026, and at least $350,000 for fiscal year 2027 and thereafter. * **Local Government Grants:** Specific counties and Baltimore City receive designated amounts for fiscal years 2027-2029, totaling over $170 million. * **Prince George’s County Reentry Employment Incentive Program:** Receives $500,000 for fiscal years 2025-2026 and $350,000 for fiscal years 2027-2028. * **Waterway Improvement Fund:** Distributes at least $250,000 annually to a statewide historic preservation nonprofit for fiscal year 2026 and thereafter, and for fiscal year 2029 and thereafter. * **9-1-1 Trust Fund:** For fiscal year 2026 and thereafter, the fund will support program operations of the Maryland Department of Emergency Management. * **Historic Revitalization Tax Credit Reserve Fund:** Receives at least $2,000,000 annually for fiscal years 2024-2026, and at least $500,000 annually for fiscal years 2027-2031. * **Revenue Stabilization Account:** For fiscal years 2026 and 2027, specific appropriation requirements are modified. * **Cigarette Restitution Fund:** $8,000,000 is appropriated annually to the Maryland Community Health Resources Commission Fund for fiscal years 2025-2029. For fiscal year 2026 only, distributions from a separate account may be used to support Medicaid expenses. For fiscal year 2027 only, excess distributions from this account can be used for purposes other than supplanting General Fund appropriations to historically black colleges and universities. * **Maryland Strategic Energy Investment Program:** For fiscal year 2027 only, $70,000,000 is allocated for gap financing for clean energy projects, $10,000,000 for grid-enhancing technologies research, $5,000,000 for transmission facility grants, $10,000,000 for transportation right-of-way initiatives, and $67,000,000 for resource planning and higher education research grants. For fiscal years 2027-2031, compliance fees can be used for grants or loans for new Tier 1 renewable energy sources. * **Maryland Corps Program:** Participation targets are adjusted, with 2,000 corps participants in the sixth year of implementation. * **Teachers' Retirement and Pension Systems:** Beginning in fiscal year 2027, county governments will pay increased amounts towards these systems, reducing the State's obligation. * **Local Reserve Account:** $37,300,000 is distributed to the General Fund of the State by June 1, 2025. * **Transfer Tax Revenue:** For fiscal years 2026-2029, $25,000,000 annually is allocated to the General Fund. For fiscal year 2027 only, an additional $71,743,156 is allocated to the General Fund, with reductions to Program Open Space, Rural Legacy Program, and Natural Resources Development Fund, to be replaced by General Obligation Bonds. * **Urban Agriculture Water and Power Infrastructure Grant Fund:** Receives $500,000 annually for fiscal years 2024-2026, and $400,000 for fiscal year 2027. * **Maryland Emergency Medical System Operations Fund:** For fiscal years 2025-2029, money in the fund may be used to support general operations of the Department of State Police, Special Operations Bureau, Aviation Command. * **Tax Modifications:** Changes are made to the calculation of Maryland adjusted gross income for individuals and corporations related to depreciation deductions, including limitations on certain allowances and the treatment of heavy-duty SUVs. These changes apply to taxable years beginning after December 31, 2025. * **General Fund Transfers:** The Governor may transfer significant amounts from various funds to the General Fund by June 30, 2026, and by June 30, 2027. * **Alfred D. Noyes Children’s Center:** A $3,000,000 appropriation for fiscal year 2026 may be used for drug treatment services at other child-serving facilities and to reopen the center as a facility for children. * **Nonpublic Placements and Interagency Rates Committee:** No increases over rates in effect on January 21, 2026, will be paid in fiscal year 2027. * **Interagency Commission on School Construction:** Federal funding for HVAC upgrades may be reallocated to comply with the American Rescue Plan Act of 2021.

Committee Categories

Budget and Finance

Sponsors (0)

No sponsors listed

Last Action

House Appropriations Hearing (13:00:00 3/5/2026 ) (on 03/05/2026)

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