ANNAPOLIS, MD—Governor Larry Hogan announced Friday a bipartisan agreement to dramatically increase critical transportation and infrastructure funding for local governments to advance priority projects. The governor made the announcement while hosting a reception for the Maryland Mayors Association at Government House.
“Since taking office, our administration has been committed to directing more transportation funding to the local level, and this agreement ensures that will be the case for years to come,” said Governor Hogan. “These grants will provide our counties and municipalities with vital resources to address critical needs and advance more priority projects in every jurisdiction. For eight years, our administration has been fighting on behalf of our county leaders and mayors to increase this funding, and I want to thank our partners in the General Assembly for working with us to get this done.”
This bipartisan agreement will increase the share of transportation funds that local governments receive through highway user revenue (HUR) grants beginning in FY24. In FY24, the share of transportation funding for local jurisdictions will increase from 13.5% to 15.5%, and by FY27, the percentage will increase to 20%. Without action, these grants would have been cut beginning in FY24. In total, from FY24 through FY27, local jurisdictions will receive $663 million more in transportation funding than under current law.
This agreement builds on legislation the governor enacted in 2018 to increase funding for these grants, which had been cut by 90% under the previous administration. State investment in transportation and infrastructure will be unaffected by the agreement.
This was one of the governor’s priorities in the budget negotiations that resulted in the historic tax relief package that was announced earlier this week. It is also a top priority for the Maryland Association of Counties and the Maryland Municipal League.
On Wednesday, Governor Hogan addressed the American Association of Port Authorities’ Legislative Summit, where he touted Maryland’s historic investments in the Port of Baltimore and discussed the implementation of the federal Infrastructure Investment and Jobs Act.