The 2025 Maryland General Assembly session concluded with significant legislative actions aimed at addressing a $3.3 billion budget deficit and preparing for potential federal funding cuts. The Administration and legislature implemented a combination of spending cuts and tax increases, including new taxes on high-income individuals, IT services, capital gains, recreational cannabis, and sports betting, generating $1.6 billion in revenue and resulting in $2 billion in cuts while maintaining a $2.1 billion rainy day fund. Key legislative accomplishments included a comprehensive energy package promoting diverse energy sources and providing rebates for electric ratepayers, $25 million in abortion support funding, a permanent subsidy program for young adult health insurance, expanded prescription drug price controls, and increased opportunities for sentencing reconsideration and criminal record expungement. Additionally, lawmakers established a commission to study reparations for slavery and approved new liability caps for sexual abuse cases. Finally, a new legislative panel will monitor federal developments to safeguard Maryland's economic stability, particularly given its reliance on federal jobs and contracts. 

For more information on legislation directly impacting municipalities, join MML on April 23 at noon for a "Lunch and Learn: Legislative Wrap Up" webinar on the Maryland General Assembly’s 2025 legislative session. Registration and more information is available here.

The Maryland Department of Labor announces two programs - one active and one upcoming - to provide funding to launch apprenticeship training programs for public sector workers. Local governments are eligible applicants for both programs. The Department of Labor is hosting a webinar on Thursday, April 17 to provide information and assistance with applications. Visit the EventBrite webpage where anyone can register to attend.

In the Maryland General Assembly, "crossover" refers to the point in the legislative session when bills must move from one chamber (either the House of Delegates or the Senate) to the other to continue in the legislative process. Crossover typically occurs around the end of the ninth week of the legislative session (usually in mid-March). After this deadline, bills that have not passed out of their originating chamber are considered "dead" for that year unless they are amended or revived in some way. Bills that cross over transition from the initial phase of the session, where bills are debated and modified, to the second phase, where bills are finalized and voted on by both chambers. This process ensures that both chambers have adequate time to review and debate bills originating in the other chamber.

So far this session, MML has taken positions on 211 bills. To see a complete list of which bills crossed over, click here.

The Moore Administration's 2025 housing bill, the Housing for Jobs Act (SB 430/HB 503), will be heard by both chambers on Tuesday, March 4, 2025. This measure aims to address regional housing infrastructure gaps. Key points include:

• Mandates Housing Infrastructure Analysis: The Departments of Housing and Community Development and Planning must annually calculate and publish housing infrastructure gaps for designated regions
• Apportionment of Housing Gaps: Regional housing deficits will be divided among counties and incorporated municipalities based on their share of regional jobs
• Incentives for Housing Development: Local jurisdictions can reduce their assigned housing gap by approving new housing, particularly near rail stations and for affordable housing
• Limits on Housing Denials: Local jurisdictions must justify rejections of housing projects with clear and convincing evidence, citing specific adverse impacts or zoning restrictions
• Legal Enforcement: Developers may challenge denials in court, and courts can mandate approval if a jurisdiction is found to have improperly rejected a project
• Implementation Timeline: The law would take effect on January 1, 2026

MML's position is Support with Amendments, and will be testifying in person. If you would like to participate - either in person, virtually, or through written testimony - or you have suggestions for amendments, please contact Angelica Bailey Thupari ([email protected]). The deadline to submit testimony is this Friday, February 28 by 6 p.m. 

The Maryland Department of Transportation (MDOT) State Highway Administration will host a series of public workshops this February and March to present grant opportunities that can enhance bicycle and pedestrian access, support transit-oriented development, and promote sustainability initiatives across the state. 

Workshop Highlights:
When: 10 a.m. to 3 p.m. on the following dates:

The Maryland Department of the Environment (MDE) will co-host a webinar called "The Status of Recycling in Maryland" with the Maryland Recycling Network (MRN). The target audience is both local and State elected officials.

More details are below. Email Gabrielle Leach with questions or to RSVP. 

Program Description:​ The Maryland Smart Energy Communities (MSEC) FY25 programs are designed to support local governments, state agencies, non-profit organizations, educational institutions, and communities as they engage in sustainable, long-term, clean energy policies and projects that lead to reduced energy usage and greenhouse gas emissions, increased cost savings, and robust clean energy and economic development.

Program Purpose: ​The MSEC FY25 program provides a comprehensive suite of programs that extend beyond government operations to include opportunities for communities as a whole.  This offering provides an opportunity to fund community-wide visions of how clean energy and related technologies can scale up to a community level.  The two core programs within the MSEC portfolio are designed to foster overall community planning that involves the setting of climate and energy goals, decarbonizing economies, and promoting diversity and environmental justice.

The Federal Highway Administration (FHWA) has announced the next round of Promoting Resilient Operations for Transformative, Efficient and Cost-Saving Transportation (PROTECT) discretionary grant funding. The PROTECT Discretionary program provides funding to strengthen surface transportation to be more resilient to natural hazards, including climate change, sea level rise, heat waves, flooding, extreme weather, and other natural disasters through support of planning activities, resilience improvements, evacuation routes, and at-risk coastal infrastructure. There are four general categories of grant awards from the PROTECT program. There is a $100,000 minimum for planning grants. There is a $500,000 minimum for construction grants. Last round, planning awards ranged from $142,000 - $5.3 million and $750,000 - $60 million for construction. At least 25% of the funding must be used for projects in rural areas, at least 2% of the funding must go to Tribal area projects, and no more than 25% of total funding may be used for Intercity Rail projects. 

Eligible Facilities: Planning and resiliency grants may be awarded to support the following facilities:

Maryland Department of the Environment (MDE) has proposed revisions to Chapter 2 of the Stormwater Design Manual (Design Manual), the stormwater management regulations. Changes to Chapters 1, 3, 5, and the appendices will also need to be made. The proposed changes as a whole are designed to simplify the stormwater management design process, remove outdated and conflicting material that is currently in the Design Manual, and combine into one the two chapters (Chapters 3 and 5) that describe stormwater management practices. More information on this process can be found here.

On September 16, 2024, the Environmental Protection Agency (EPA) announced three new funding opportunities, totaling approximately $117 million, to improve recycling infrastructure and consumer education and outreach on wasted food prevention and composting. Two are Solid Waste Infrastructure for Recycling (SWIFR) grants for communities and for Tribes and intertribal consortia - focused on improving solid waste management infrastructure. The third is for the Recycling Outreach and Education (REO) grant program and is focused on wasted food prevention and composting.

Solid Waste Infrastructure for Recycling (SWIFR) Funding Opportunities

The U.S. Environmental Protection Agency (EPA) has found recurring Clean Air Act compliance issues at Municipal Solid Waste (MSW) landfills leading to the significant release of methane, a climate super-pollutant, and other air pollutants. More than 100 EPA inspections over the past three years reveal that many MSW landfill operators are not complying with applicable regulatory requirements, including gas collection and control systems (GCCS) requirements, surface emissions monitoring (SEM) procedures, and maintaining cover surface integrity. 

As a result, EPA is issuing two enforcement alerts on MSW landfills at the same time:

Last month, the U.S. Department of Transportation (USDOT) announced the opening of the next round of Reconnecting Communities Pilot (RCP) program grants. They have made over $600 million available for both planning and construction projects that seek to restore mobility, accessibility, and community connectivity that is harmed by defined dividing infrastructure facilities. This announcement contains all of the remaining Infrastructure Investment and Jobs Act (IIJA) funding for the program. Applications are due Sept 30.

In line with its all-of-Maryland approach, the Maryland Department of the Environment has contracted the University of Maryland’s Environmental Finance Center to provide no-cost, direct technical assistance to the following 12 counties and municipalities within: Allegany, Calvert, Caroline, Dorchester, Garrett, Kent, Somerset, St. Mary's, Talbot, Washington, Wicomico, and Worcester.

This assistance will be delivered at no cost to recipients through an award from the Maryland Department of the Environment. Available services include assistance identifying climate pollution reduction projects; developing plans; building technical, financial, and managerial capacity; and completing funding application materials.

The Clean Water Commerce Act (CWCA) passed by the Maryland General Assembly during the 2017 Session (CH366/367) and reauthorized during the 2021 Session (CH694/695) expanded the uses of the Bay Restoration Fund to include the costs associated with the purchase of cost-effective nitrogen load reductions in support of the State’s efforts to restore the health of the Chesapeake Bay.

Chapters 501 and 502 of the 2024 Maryland General Assembly Session, "Clean Water Commerce Account - Contracts for Purchase of Environmental Outcomes," requires the Maryland Department of the Environment (MDE) to allow for nonuniform payment schedules when entering into a contract for a project that includes construction, reconstruction, or rehabilitation.  Due to this legislative change MDE is reopening the solicitation that previously closed on January 31, 2024.  
 
The Maryland Department of Environment (MDE) invites you to send proposals by August 30, 2024 for the purchase of nitrogen reductions.
  
Proposals previously submitted on or before January 31, 2024 will still be considered for funding.  Any proposal previously submitted that includes construction, reconstruction, or rehabilitation and submitted with a uniform payment schedule may be resubmitted with a nonuniform payment schedule.  Additionally, MDE is accepting new proposals that were not previously submitted during the application period that ended on January 31, 2024.  
 
Proposals that do not include construction, reconstruction, or rehabilitation should continue to use a uniform payment schedule with equal payments spread out over the length of the payment schedule.  Proposals that do include construction, reconstruction, or rehabilitation can use either a uniform or nonuniform payment schedule.

On March 15^th, in Lindke v. Freed, the Supreme Court established the test for when local government officials are considered "state actors" for the purposes of the First Amendment when they post on social media.  The case is a win for local governments, as the test provided by the Supreme Court safeguards the free speech rights of elected officials while balancing the rights of their citizens. 

The National League of Cities (NLC) has created two resources to help local governments navigate this in practical terms:

On April 10, 2024, the EPA announced the final National Primary Drinking Water Regulation (NPDWR) for six PFAS. The NPDWR establishes legally enforceable levels, called Maximum Contaminant Levels (MCLs), for six PFAS in drinking water: PFOA, PFOS, PFHxS, PFNA, and HFPO-DA as contaminants with individual MCLs, and PFAS mixtures containing at least two or more of PFHxS, PFNA, HFPO-DA, and PFBS using a Hazard Index MCL to account for the combined and co-occurring levels of these PFAS in drinking water. EPA also finalized health-based, non-enforceable Maximum Contaminant Level Goals (MCLGs) for these PFAS. 

The final rule requires:

HB 538, the Governor's Housing Expansion bill, passed with several amendments. This bill requires local jurisdictions to allow (1) new manufactured homes and modular dwellings in zones that allow single-family residential uses and (2) increased densities and uses in specified zoning areas for “qualified projects” (which include specified amounts of affordable housing). The bill prohibits a local jurisdiction from imposing unreasonable limitations or requirements on a qualified project or requiring a qualified project to be reviewed at more than a specified number of public hearings. The bill also establishes a Historic Property Revitalization Director within the Department of Housing and Community Development (DHCD). The bill takes effect January 1, 2025.

HB 693, the Governor's Renters' Rights and Stabilization bill, also passed with amendments. This measure increases the cost of filing eviction and other landlord-tenant cases in court. The bill also establishes the Office of Tenant and Landlord Affairs (OTLA) in the Department of Housing and Community Development (DHCD), extends the period between granting judgment for possession in favor of a landlord and the execution of the warrant of restitution, establishes a tenant’s right of first refusal (and an exclusive negotiation period) prior to the sale of certain residential rental property, and expands the categories of eviction data that must be collected by the Judiciary and provided to DHCD.

MML’s priority legislation, HB 1281, to allow municipalities to self-designate Tourism Zones will be heard in the House Ways & Means Committee on Thursday, February 29.

Modeled off a successful program in Virginia, this MML priority bill would authorize local governments to provide an array of local tax credits or waivers to businesses that aid in expanding tourism. This program would not only bolster the ability of jurisdictions to attract and retain community-oriented businesses, especially for those that lack access to other incentive programs, but to directly expand the State’s general revenue fund and attract new visitors to Maryland.