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*hb0386*
HOUSE BILL 386
R2, B1 6lr1359
CF SB 281
By: Delegates Korman, Acevero, Alston, Bagnall, Barnes, Bartlett, Boafo,
Charkoudian, Coley, Crutchfield, Cullison, Edelson, Fair, Fennell, Foley,
Fraser–Hidalgo, Harrison, Healey, Holmes, Ivey, Kaiser, Kaufman, Lehman,
J. Long, Lopez, Martinez, Mireku –North, Moon, Odom, Palakovich Carr,
Patterson, Pena–Melnyk, Qi, Queen, Roberson, Roberts, Shetty, Simmons,
Solomon, Spi egel, Stewart, Taveras, Taylor, Toles, Turner, Valderrama,
Vogel, Wilkins, Williams, Wims, Wolek, Woods, Woorman, Wu, and Ziegler
Introduced and read first time: January 21, 2026
Assigned to: Environment and Transportation and Appropriations
Reassigned: Appropriations and Environment and Transportation, February 2, 2026
Committee Report: Favorable with amendments
House action: Adopted
Read second time: February 23, 2026
CHAPTER ______
AN ACT concerning 1
Metro Funding Modification Act of 2026 2
FOR the purpose of requiring the Governor to withhold a certain percentage of the annual 3
appropriation for grants to the Washington Suburban Transit District under certain 4
circumstances; altering the calculation of the amount that the Governor is required 5
to include in the annual State budget each year to provide grants to the Washington 6
Suburban Transit District to pay the capital costs of the Washington Metropolitan 7
Area Transit Authority; requiring the Governor to include an appropriation in the 8
annual State budget bill for the purpose of paying the State’s proportionate share of 9
the Metrorail Operating Subsidy Allocation Formula funding required under a 10
certain agreement ; requiring the Department to withhold certain grants for any 11
fiscal year in which the Authority invests in a rail signaling system without reaching 12
certain collective bargaining agreements; making this Act contingent on enactment 13
of certain legislation by the Commonwealth of Virgina and the District of Columbia; 14
and generally relating to funding for the Washington Metropolitan Area Transit 15
Authority. 16
BY repealing and reenacting, with amendments, 17
2 HOUSE BILL 386
Article – Transportation 1
Section 10–205(f) and (g) 2
Annotated Code of Maryland 3
(2020 Replacement Volume and 2025 Supplement) 4
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 5
That the Laws of Maryland read as follows: 6
Article – Transportation 7
10–205. 8
(f) (1) Except as provided in paragraph (2) of this subsection, the Governor 9
shall include an appropriation in the annual budget of at least the amount specified in 10
paragraph (4) of this subsection for the sole purpose of providing grants to the Washington 11
Suburban Transit District to pay the capital costs of the Washington Metropolitan Area 12
Transit Authority. 13
(2) (i) The Governor is not required to make the appropriation under 14
paragraph (1) of this subsection in a fiscal year unless the Department certifies to the 15
Governor in writing before the beginning of the immediately preceding fiscal year that the 16
Washington Metropolitan Area Transit Authority has submitted to the Department: 17
1. Performance and condition assessments and reports 18
regarding: 19
A. The safety and reliability of rapid heavy rail and bus 20
systems; 21
B. The financial performance of the Washington 22
Metropolitan Area Transit Authority as it relates to rail and bus operations, including fare 23
box recovery, service per rider, and cost per service hour; 24
C. The monthly ridership of rail and bus systems broken 25
down by Metrorail station, Metrorail line, bus route, and bus line; 26
D. Strategies to reduce costs and improve the Washington 27
Metropolitan Area Transit Authority’s operational efficiency; and 28
E. The comparison of annual capital investments and 29
approved budgets; and 30
2. The Washington Metropolitan Area Transit Authority’s: 31
A. Annual budget; 32
B. Annual independent financial audit; 33
HOUSE BILL 386 3
C. Annual National Transit Database profile; and 1
D. Single audit reports issued in accordance with the 2
Uniform Administrative Requirements, Cost Pri nciples, and Audit Requirements for 3
Federal Awards under 2 C.F.R. Part 200. 4
(ii) If the Commonwealth of Virginia or the District of Columbia 5
reduce the amount of dedicated capital funding for the Washington Metropolitan Area 6
Transit Authority, the Governor may reduce the appropriation under paragraph (1) of this 7
subsection by a proportional amount. 8
(iii) 1. The Governor shall withhold 35% of the appropriation 9
under paragraph (1) of this subsection if: 10
A. The Washington Metropolitan Area Transit Authority has 11
received a modified audit opinion as a result of an annual independent audit conducted in 12
accordance with Article XVI, Section 70 of the Washington Metropolitan Area Transit 13
Authority Compact under § 10–204 of this subtitle; and 14
B. The Department has not certified to the Governor in 15
writing before the beginning of the immediately preceding fiscal year that the Washington 16
Metropolitan Area Transit Authority has submitted in writing to the board of directors of 17
the Washington Metropolitan Area Transit Authority and the Maryland General Assembly 18
a satisfactory corrective plan that addresses the reasons for the modified audit opinion. 19
2. The Governor shall release the portion of the 20
appropriation withheld under subsubparagraph 1 of t his subparagraph if the Washington 21
Metropolitan Area Transit Authority submits in writing to the board of directors of the 22
Washington Metropolitan Area Transit Authority and, in accordance with § 2 –1257 of the 23
State Government Article, the Maryland General Assembly a satisfactory corrective action 24
plan that addresses the reasons for the modified audit opinion. 25
3. ON OR BEFORE JULY 1, 2028, THE BOARD OF 26
DIRECTORS OF THE WASHINGTON METROPOLITAN AREA TRANSIT AUTHORITY 27
SHALL APPROVE A RAIL SIGNALING AND AU TOMATION WORKFORCE T RANSITION 28
PLAN, DEVELOPED IN CONSULT ATION WITH AFFECTED COLLECTIVE BARGAINING 29
UNITS. 30
4. THE GOVERNOR SHALL WITHHO LD 35% OF THE 31
APPROPRIATION UNDER PARAGRAPH (1) OF THIS SUBSECTION F OR ANY FISCAL 32
YEAR IN WHICH: 33
A. THE REQUIREME NT OF SUBSUBPARAGRAP H 3 OF 34
THIS SUBPARAGRAPH IS NOT MET; OR 35
4 HOUSE BILL 386
B. A RAIL OR BUS OPERATOR EMPLOYED BY THE 1
WASHINGTON METROPOLITAN AREA TRANSIT AUTHORITY ON OR AFTER JULY 1, 2
2028, IS TERMINATED DUE TO A REDUCTION IN FORCE CAUSED BY THE AUTOMATION 3
OF THE RAIL SYSTEM. 4
(3) The Governor shall make the appropriation under paragraph (1) of this 5
subsection from the Transportation Trust Fund. 6
(4) [(i)] For the first fiscal year in which the mandated appropriation 7
under this subsection applies, the appropriation under paragraph (1) of this subsection 8
shall equal at least the amount appropriated in the fiscal year 2019 State budget as enacted 9
for the Washington Suburban Transit District to pay the capital costs of the Washington 10
Metropolitan Area Transit Authority. 11
[(ii) For each fiscal year after the first fiscal year in which the 12
mandated appropriation under this subsection applies, the appropriation under paragraph 13
(1) of this subsection shall be equal to the amount of the appropriation for the preceding 14
fiscal year increased by 3%.] 15
(g) (1) (I) The Governor shall include in the State budget an appropriation 16
for the purposes specified under [paragraph (2) of this subsection of $167,000,000 ] 17
PARAGRAPHS (2) AND (4) OF THIS SUBSECTION from the rev enues available for the 18
State capital program in the Transportation Trust Fund. 19
(II) FOR FISCAL YEAR 2029 AND EACH FISCAL YEAR 20
THEREAFTER, FROM THE REVENUES AV AILABLE FOR THE STATE CAPITAL 21
PROGRAM, THE GOVERNOR SHALL INCLUD E IN THE STATE BUDGET AN 22
APPROPRIATION FOR TH E PURPOSES SPECIFIED UNDER PARAGRAPH (4) OF THIS 23
SUBSECTION EQUAL TO THE AMOUNT AS ADJUSTED UNDER PARAGRAPH (5) OF THIS 24
SUBSECTION. 25
(2) The Department shall provide an annual grant of at least $167,000,000 26
to the Washington Suburban Transit District to be used only to pay the capital costs of the 27
Washington Metropolitan Area Transit Authority. 28
(3) The [grant] GRANTS required under [paragraph (2) ] PARAGRAPHS 29
(2) AND (4) of this subsection [is] ARE in addition to the appropriation required under 30
subsection (f)(1) of this section. 31
(4) (I) FOR FISCAL YEAR 2029 AND EACH FISC AL YEAR 32
THEREAFTER, THE DEPARTMENT SHALL PROVIDE AN ANNUAL CAPITAL GRANT OF 33
AT LEAST $150,000,000 ADJUSTED AS REQUIRED UNDER SUBPARAGRAPH (II) OF 34
THIS PARAGRAPH FOR T HE STATE’S PROPORTIONATE SHAR E OF THE METRORAIL 35
OPERATING SUBSIDY ALLOCATION FORMULA DEDICATED FUNDING REQUIRED BY 36
HOUSE BILL 386 5
THE CAPITAL FUNDING AGREEMENT SUBSIDY ALLOCATION FORMULA, OR ANY 1
SUCCESSOR AGREEMENT. 2
(II) FOR EACH FISCAL YEAR AFTER FISCAL YEAR 2029, THE 3
APPROPRIATION UNDER THIS PARAGRAPH SHALL BE EQUAL TO THE AMOU NT OF 4
THE APPROPRIATION FOR THE IMMEDIATELY PRECEDING FISCAL YEAR INCREASED 5
BY 3%. 6
(III) IF THE U.S. CONGRESS APPROPRIATES MORE THAN 7
$150,000,000 IN A FISCAL YEAR FOR WASHINGTON METROPOLITAN AREA TRANSIT 8
AUTHORITY INFRASTRUCTURE IMPROVEMENTS UNDER THE AUTHORITY OF § 601(F) 9
OF THE PASSENGER RAIL INVESTMENT AND IMPROVEMENT ACT OF 2008, THE 10
GRANT REQUIRED UNDER THIS PARAGRAPH SHALL BE DEEMED TO BE THE STATE’S 11
MATCHING CONTRIBUTION TO THE FEDERALLY A PPROPRIATED FUNDS IN EXCESS 12
OF $150,000,000. 13
SECTION 2. AND BE IT FURTHER ENACTED, That: 14
(a) Section 1 of this Act is contingent on: 15
(1) the Commonwealth of Virginia enacting legislation that provides 16
dedicated capital funding for the Washington Metropolitan Area Transit Authority that 17
includes: 18
(i) a mandatory appropriat ion for the Commonwealth of Virginia’s 19
proportionate share of the Metrorail Operating Subsidy Allocation Formula dedicated 20
funding required by the Capital Funding Agreement Subsidy Allocation Formula, or any 21
successor agreement; and 22
(ii) an annual 3% increase to the mandatory appropriation; and 23
(2) the District of Columbia enacting legislation that provides dedicated 24
capital funding for the Washington Metropolitan Area Transit Authority that includes: 25
(i) a mandatory appropriation for the District of Columbia’s 26
proportionate share of the Metrorail Operating Subsidy Allocation Formula dedicated 27
funding required by the Capital Funding Agreement Subsidy Allocation Formula, or any 28
successor agreement; and 29
(ii) an annual 3% increase to the base amount of capital funding. 30
(b) The Department of Transportation shall notify the Department of Legislative 31
Services in writing within 5 days after both the Commonwealth of Virginia and the District 32
of Columbia have enacted legislation that meets the requirements of subsection (a) of this 33
section. 34
6 HOUSE BILL 386
(c) Section 1 of this Act shall take effect on the date that the Department of 1
Legislative Services receives notice under subsection (b) of this section. 2
SECTION 3. AND BE IT FURTHER ENACTED, That, subject to Section 2 of this 3
Act, this Act shall take effect June 1, 2026. 4
Approved:
________________________________________________________________________________
Governor.
________________________________________________________________________________
Speaker of the House of Delegates.
________________________________________________________________________________
President of the Senate.