Maryland Senate Bill SB0288

Maryland 2026 Regular Session

• Introduced: 1/21/26
• Refer: 1/21/26

Caption

Transportation - Highway User Revenues Capital Grants - Calculation

Summary

SB 288 would change how Maryland calculates certain capital grants paid from highway user revenues, which are funds in the Transportation Trust Fund derived from motor fuel taxes, vehicle titling taxes, vehicle registration fees, and related sources. The bill keeps the existing framework for distributing these revenues to Baltimore City, counties, and municipalities, but revises the percentage shares used to determine the annual appropriations. Under current law, the bill preserves the scheduled allocations through fiscal year 2026 and then makes a major change beginning in fiscal year 2027. For fiscal year 2027 and each year after, the county share would increase from 4.8% to 15.2% of funds credited to the Gasoline and Motor Vehicle Revenue Account, while Baltimore City would remain at 12.2% and municipalities at 3.0%. The bill takes effect July 1, 2026, and the grants remain subject to the condition that debt service, operating expenses, and other capital program needs are funded first.

Impact

SB 288 would amend Transportation Article § 8-403, changing the statutory formula that governs how much of the Gasoline and Motor Vehicle Revenue Account must be appropriated as capital grants to local governments. The practical effect is to substantially increase the share reserved for counties beginning in fiscal 2027, which would likely reduce the amount available for other Transportation Trust Fund uses or require larger overall revenues to maintain existing funding levels elsewhere. Baltimore City and municipalities would keep the same percentages in the post-2026 period, while counties would receive a much larger mandated share.

Sentiment

No committee transcripts or recorded votes were provided, so there is no direct evidence of debate, amendments, or formal support/opposition in the available record. Based on the bill text alone, the measure appears to be a targeted fiscal distribution change rather than a broad policy overhaul. The structure suggests it is intended to adjust local transportation funding formulas, which typically draws interest from local governments and transportation funding stakeholders.

Contention

The main point of contention is likely the reallocation of highway user revenue shares among local governments, especially the sharp increase for counties beginning in fiscal 2027. Counties would benefit from the higher percentage, while any parties concerned about Transportation Trust Fund balance, state capital program flexibility, or relative treatment of Baltimore City and municipalities may oppose the change. Because the bill does not include hearing testimony or votes, no specific individuals or organizations are identified as holding these positions in the available materials.