Maryland legislators will return to Annapolis next month hoping to plug a growing hole in the state’s transportation budget and in doing so stave off the potential for drastic cuts and more delays to major road, transit and bridge projects.
“We were not in good shape last year. We’re in worse shape this year, with no solutions on the table,” Democratic Del. Courtney Watson said in an interview.
Concerns about a drop in federal aid with Republicans controlling Congress and the White House may loom over the 90-day session, though there appears to be varying levels of anxiety, including among Democrats.
State legislators, nonpartisan analysts, advocacy group leaders and more have in recent weeks floated policies they hope the state will adopt to pay for transformational but cash-strapped projects.
It’s also become clear that legislators will continue pushing for stricter traffic laws to further reduce deaths among pedestrians, drivers and roadside workers, and to potentially raise a bit of money.
Without a silver-bullet option to replace declining revenue from gas taxes that have for decades fueled transportation budgets, the governor and the General Assembly could adopt a variety of tax or fee increases that each contribute a marginal amount of money, similar to what they did in the 2024 session.
A commission of legislators, analysts and more was expected to recommend changes to the revenue model in January, and that report would likely guide discussions in the upcoming session.
Some Democrats have called for “courage” and “political will” among their party peers to enact potentially unpopular changes that will generate serious revenue.
“There are a lot of political land mines for legislators that care a lot about what the public thinks,” Del. Vaughn Stewart said during a recent Maryland Chamber of Commerce event.
Stewart, a Democrat representing a reliably blue district in Montgomery County, said that members of his party — which holds a supermajority in the legislature — must be “willing to lose elections.”
The Senate will have the first vote on Democratic Gov. Wes Moore’s spending proposal. Senate President Bill Ferguson, who was hesitant to support major revenue reforms last session, has said that “everything is on the table.”
Maryland, with Baltimore transit and a third of the responsibility for the D.C. Metro, is the only state paying to operate two urban transit systems entirely out of its own coffers.
“That key question is: Do we want to stick with our current everything-is-statewide model, or do we want to shift to regionalization? I think that’s a pretty big conversation,” Del. Marc Korman said during the recent Chamber of Commerce event.
Korman, who chairs the House Environment and Transportation Committee, raised the possibility of changing Maryland’s model to have regional transportation authorities, like in nearby Virginia and other states.
Maryland could also tax regions based on their proximity to transit services or the road projects they have underway, he said.
Some legislators want to increase tolls sooner than planned, especially for out-of-state drivers. Toll rates are set to increase as early as 2027, and raising them early would generate additional revenue sooner.
The decision rests with the Maryland Transportation Authority, an independent state agency that oversees the state’s toll facilities. The collapse of the Francis Scott Key Bridge, a major source of toll revenue, has already prompted the authority to consider an earlier increase.
Legislators have said that they will again focus on roadway safety, potentially requiring speed cameras in more areas, expanding a pilot program for stop-sign cameras and implementing higher speeding fines.
Over the past five years and particularly following the COVID-19 pandemic, Maryland has seen a spike in roadway deaths. But after multiple years of increases, the state is on pace this year to see a decline.
Safe driving around work zones took on new urgency in 2024 after six roadside workers died in a traffic accident on Interstate 695. The General Assembly last session significantly increased work zone speed camera violations.
The fines are projected to raise money for road projects and maintenance, though it won’t make much of a dent in projected deficits.
The Maryland Department of Transportation is facing a $1.3 billion shortfall in its $18.9 billion six-year budget — called the Consolidated Transportation Program (CTP) — for operations, maintenance and projects.
Transportation Secretary Paul Wiedefeld has proposed a $1.3 billion cut, avoiding decreases to general operating jobs and services but delaying construction for 16 state highway projects, deferring some sidewalk repairs and intersection improvements, and cutting from state-of-good repair funding to maintain roads, transit and aviation infrastructure.
The department was short $3.1 billion heading into the 2024 session, and legislators implemented a vehicle registration fee based on weight, an electric vehicle surcharge, ride-hailing fees and higher fines for speeding in work zones to infuse about $1.8 billion into the budget over the next six years.
The department’s operating costs regularly outpace its revenue growth, but the shortfall is expected to continue growing and there are fewer options available this year to avoid cuts.
The Moore administration also needs money for its loftiest promises, including the east-west Baltimore Red Line light rail.
Officials hope that the marginal investment made so far will help the state compete for federal funding to cover a substantial portion of the $3.2 billion to $7.2 billion project.
Baltimore has awaited an east-west transit system for decades. Public transportation in the city has historically been built with north-to-south routes, offering ways into and out of the city but neglecting to connect the city’s east and west sides and leaving majority Black communities who rely on transit to get to school, work, church and more without reliable options.
“This isn’t a funding issue, this is a value issue,” Sen. Cory McCray, a Baltimore City Democrat, said during a recent Greater Baltimore Committee event.
Advocacy for state transportation money can pit the Baltimore and Washington, D.C., regions against each other.
Baltimore legislators and officials point out that state funding for the D.C. Metro is a responsibility shared among the district, Virginia and Maryland, while the Baltimore region is wholly dependent on the Maryland Department of Transportation.
“That makes for some interesting tensions when people say, ‘Well I don’t live in that part of the state, why should I invest in it?’” said Del. Stephanie Smith, another Baltimore City Democrat.
The state Department of Transportation’s budget proposal includes money to finish the embattled Purple Line project to connect Bethesda and New Carrollton and to build the new Frederick Douglass Tunnel to ease chronic delays for commuters and travelers taking Amtrak trains between Baltimore and the capital region.
The department has also set aside money to continue with reconstructing the 130-year-old Howard Street Tunnel and bridges between Baltimore and Philadelphia to improve rail shipping in and out of the Port of Baltimore.
Costs associated with rebuilding the Key Bridge that fall to the state will be in the separate budget of the Maryland Transportation Authority.
Wiedefeld, though, said the project has and will continue to be a major focus as increased congestion continues to plague the Baltimore region.
“I’ve got to focus on schedule, schedule, schedule,” he said in a recent interview. “We cannot let that project slip.”
The Moore administration and its allies on Capitol Hill have lobbied Congress to follow through on President Joe Biden’s commitment to pay the entire cost to rebuild the bridge, as opposed to the standard 90% for such projects, and the president’s recent request for nearly $100 billion in emergency disaster aid includes money to cover the full cost.
With Donald Trump’s pending return to the White House and Republicans poised to control both chambers of Congress, it remains to be seen what will come of Biden’s request and the broader push for full federal funding.
Even aside from the Key Bridge, whether Maryland can move forward with its priority projects depends on the federal aid it receives.
It’s not yet clear whether Maryland will receive less aid or have a harder time getting federal approvals, but some Democrats have already issued warnings.
“We have to be realistic that if the federal government’s input in the state of Maryland significantly contracts, it could be catastrophic,” said Democratic Del. Mark Edelson.
Republicans certainly don’t see the situation as quite so dire.
“Everything is overblown until we see what actually happens,” Senate Minority Leader Steve Hershey said in a recent phone interview.
Wiedefeld also said he isn’t overly concerned with Maryland losing its federal aid. He expects that the Trump administration will want to pay for infrastructure projects and that Republicans and Democrats in Congress will be pushing for priorities in their districts.
“I don’t see it quite as doomsday-ish,” he said.
