Maryland 2025 Regular Session

Maryland House Bill HB1424

Introduced
2/7/25  
Refer
2/7/25  
Report Pass
3/3/25  
Engrossed
3/11/25  
Refer
3/12/25  
Report Pass
4/5/25  
Enrolled
4/7/25  
Chaptered
4/22/25  

Caption

Anne Arundel County - Community Sewerage Systems - Homeowners Association Control

Summary

HB1424, titled the Protect Our Federal Workers Act, expands Maryland’s response tools for federal workforce disruptions. It renames the Federal Government Shutdown Employee Assistance Loan Fund to the Federal Government Employee Assistance Loan Fund and broadens the fund’s purpose beyond shutdowns to include assistance for Maryland residents who are federal employees affected by a closure, relocation, mass layoff, or similar federal action. The bill also allows the Catastrophic Event Account to support these efforts, authorizes no-interest loans, and permits the Maryland Department of Labor to establish eligibility rules, verify employment through third-party vendors, and forgive loans in some cases. The bill also enlarges the Attorney General’s authority to sue or defend against certain federal actions affecting Maryland residents, specifically adding protections for unpaid federal workers, displaced federal employees, and residents denied earned federal benefits such as Social Security, Medicare, veterans’ benefits, and Medicaid. It increases the annual budget appropriation for the Attorney General from $1 million to $2.5 million for these purposes and reduces the required attorney staffing language from five attorneys to a more general funding authorization. In addition, it creates an Expedited Hiring Program in the Department of Budget and Management to help place former federal employees into vacant State jobs, with a focus on critical and hard-to-fill positions. The bill also makes related fiscal and administrative changes. It authorizes disclosure of certain tax information to the Department of Labor to administer the loan fund and prevent fraud, requires the Department of Labor to study foreclosure activity among affected federal workers and report findings to the General Assembly, and permits temporary transfers from the Revenue Stabilization Account to support the loan fund and Attorney General expenses, subject to Legislative Policy Committee review. The act is structured as an emergency measure and includes time-limited provisions that expire after specified dates unless otherwise extended by law. Overall, the sentiment reflected in the vote history is supportive, with the bill passing third reading by substantial margins in both chambers after at least one rejected floor amendment. The available record does not include committee testimony or detailed debate, but the final votes suggest broad agreement on providing financial and legal protections for federal workers and other Maryland residents affected by federal actions. The rejected amendment indicates there was at least some disagreement on the bill’s scope or details, but the core measure advanced with clear majority support. The main points of contention appear to center on the breadth of the bill’s response to federal workforce disruptions, the use of State reserve funds, and the expanded role of the Attorney General. Potentially sensitive issues include whether the State should use public funds for no-interest loans and loan forgiveness, how far the Attorney General should go in challenging federal actions, and whether the new hiring program and data-sharing provisions are sufficiently targeted and privacy-protective.

Impact

The bill amends multiple parts of Maryland law, including State Finance and Procurement, State Government, State Personnel and Pensions, and Tax-General. It expands the Catastrophic Event Account and the Federal Government Employee Assistance Loan Fund to cover not only shutdown-related hardship but also federal closures, relocations, and mass layoffs, while authorizing loan administration, employment verification, and possible loan forgiveness. It also broadens the Attorney General’s statutory authority to pursue litigation over certain federal actions and increases the State funding available for that work, creates a new expedited hiring program for former federal employees, and permits limited tax-information sharing and temporary fund transfers to support implementation.

Sentiment

The overall sentiment appears favorable and protective of affected workers, with the bill passing third reading by strong margins in the House and Senate. The votes suggest bipartisan or at least cross-faction support for helping federal employees and former federal employees facing financial hardship, while also giving the State more tools to respond to federal actions. The rejection of a floor amendment indicates some disagreement, but not enough to derail the measure.

Contention

The most notable disagreements likely involved the scope of the bill and the use of State resources. Critics may have been concerned about expanding assistance beyond shutdowns to broader federal workforce actions, authorizing loan forgiveness, sharing tax information for program administration, and increasing the Attorney General’s budget and litigation authority. Supporters, by contrast, appear to have viewed these changes as necessary to protect Maryland residents from federal disruptions, preserve household finances, and help displaced federal workers transition into State employment.

Companion Bills

MD SB683

Crossfiled Catastrophic Event Account and Federal Government Shutdown Employee Assistance Loan Fund, Protection of Federal Benefits, and Powers of the Attorney General - Alterations (Protect Our Federal Workers Act)

Similar Bills

No similar bills found.