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EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW.
[Brackets] indicate matter deleted from existing law.
*sb0281*
SENATE BILL 281
R2, B1 6lr1360
CF 6lr1359
By: Senators Augustine and Feldman
Introduced and read first time: January 20, 2026
Assigned to: Budget and Taxation
A BILL ENTITLED
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; requiring the Department to 10
withhold certain grants for any fiscal year in which the Authority invests in a rail 11
signaling system without reaching certain collective bargaining agreements; making 12
this Act contingent on enactment of certain legislation by the Commonwealth of 13
Virgina and the District of Columbia; and generally relating to funding for the 14
Washington Metropolitan Area Transit Authority. 15
BY repealing and reenacting, with amendments, 16
Article – Transportation 17
Section 10–205(f) and (g) 18
Annotated Code of Maryland 19
(2020 Replacement Volume and 2025 Supplement) 20
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 21
That the Laws of Maryland read as follows: 22
Article – Transportation 23
10–205. 24
(f) (1) Except as provided in paragraph (2) of this subsection, the Governor 25
shall include an appropriation in the annual budget of at least the amount specified in 26
2 SENATE BILL 281
paragraph (4) of this subsection for the sole purpose of providing grants to the Washington 1
Suburban Transit District to pay the capital costs of the Washington Metropolitan Area 2
Transit Authority. 3
(2) (i) The Governor is not required to make the appropriation under 4
paragraph ( 1) of this subsection in a fiscal year unless the Department certifies to the 5
Governor in writing before the beginning of the immediately preceding fiscal year that the 6
Washington Metropolitan Area Transit Authority has submitted to the Department: 7
1. Performance and condition assessments and reports 8
regarding: 9
A. The safety and reliability of rapid heavy rail and bus 10
systems; 11
B. The financial performance of the Washington 12
Metropolitan Area Transit Authority as it relates to rail and bus operations, including fare 13
box recovery, service per rider, and cost per service hour; 14
C. The monthly ridership of rail and bus systems broken 15
down by Metrorail station, Metrorail line, bus route, and bus line; 16
D. Strategies to reduce costs and impro ve the Washington 17
Metropolitan Area Transit Authority’s operational efficiency; and 18
E. The comparison of annual capital investments and 19
approved budgets; and 20
2. The Washington Metropolitan Area Transit Authority’s: 21
A. Annual budget; 22
B. Annual independent financial audit; 23
C. Annual National Transit Database profile; and 24
D. Single audit reports issued in accordance with the 25
Uniform Administrative Requirements, Cost Principles, and Audit Requirements for 26
Federal Awards under 2 C.F.R. Part 200. 27
(ii) If the Commonwealth of Virginia or the District of Columbia 28
reduce the amount of dedicated capital funding for the Washington Metropolitan Area 29
Transit Authority, the Governor may reduce the appropriation under paragraph (1) of this 30
subsection by a proportional amount. 31
(iii) 1. The Governor shall withhold 35% of the appropriation 32
under paragraph (1) of this subsection if: 33
SENATE BILL 281 3
A. The Washington Metropolitan Area Transit Authority has 1
received a modified audit opinion as a result o f an annual independent audit conducted in 2
accordance with Article XVI, Section 70 of the Washington Metropolitan Area Transit 3
Authority Compact under § 10–204 of this subtitle; and 4
B. The Department has not certified to the Governor in 5
writing before the beginning of the immediately preceding fiscal year that the Washington 6
Metropolitan Area Transit Authority has submitted in writing to the board of directors of 7
the Washington Metropolitan Area Transit Authority and the Maryland General Assembly 8
a satisfactory corrective plan that addresses the reasons for the modified audit opinion. 9
2. The Governor shall release the portion of the 10
appropriation withheld under subsubparagraph 1 of this subparagraph if the Washington 11
Metropolitan Area Transit Autho rity submits in writing to the board of directors of the 12
Washington Metropolitan Area Transit Authority and, in accordance with § 2 –1257 of the 13
State Government Article, the Maryland General Assembly a satisfactory corrective action 14
plan that addresses the reasons for the modified audit opinion. 15
3. ON OR BEFORE JULY 1, 2028, THE BOARD OF 16
DIRECTORS OF THE WASHINGTON METROPOLITAN AREA TRANSIT AUTHORITY 17
SHALL APPROVE A RAIL SIGNALING AND AUTOMA TION WORKFORCE TRANS ITION 18
PLAN, DEVELOPED IN CONSULT ATION WITH AFFECTED COLLECTIVE BARGAINING 19
UNITS. 20
4. THE GOVERNOR SHALL WITHHO LD 35% OF THE 21
APPROPRIATION UNDER PARAGRAPH (1) OF THIS SUBSECTION F OR ANY FISCAL 22
YEAR IN WHICH: 23
A. THE REQUIREMENT OF SU BSUBPARAGRAPH 3 OF 24
THIS SUBPARAGRAPH IS NOT MET; OR 25
B. A RAIL OR BUS OPERATOR EMPLOYED BY THE 26
WASHINGTON METROPOLITAN AREA TRANSIT AUTHORITY ON OR AFTER JULY 1, 27
2028, IS TERMINATED DUE TO A REDUCTION IN FORCE CAUSED BY THE AUTOMATION 28
OF THE RAIL SYSTEM. 29
(3) The Governor shall make the appropriation under paragraph (1) of this 30
subsection from the Transportation Trust Fund. 31
(4) [(i)] For the first fiscal year in which the mandated appropriation 32
under this subsection applies, the appropriation under paragraph (1) of this subsection 33
shall equal at least the amount appropriated in the fiscal year 2019 State budget as enacted 34
for the Washington Suburban Transit District to pay the capital costs of the Washington 35
Metropolitan Area Transit Authority. 36
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[(ii) For each fiscal year after the first fiscal year in which the 1
mandated appropriation under this subsection applies, the appropriation under paragraph 2
(1) of this subsection shall be equal to the amount of the appropriation for the preceding 3
fiscal year increased by 3%.] 4
(g) (1) (I) The Governor shall include in the State budget an appropriation 5
for the purposes specified under [paragraph (2) of this subsection of $167,000,000 ] 6
PARAGRAPHS (2) AND (4) OF THIS SUBSECTION from the revenues available for the 7
State capital program in the Transportation Trust Fund. 8
(II) FOR FISCAL YEAR 2029 AND EACH FISCAL YEAR 9
THEREAFTER, FROM THE REVENUES AV AILABLE FOR THE STATE CAPITAL 10
PROGRAM, THE GOVERNOR SHALL INCLUD E IN THE STATE BUDGET AN 11
APPROPRIATION FOR TH E PURPOSES SPECIFIED UNDER PARAGRAPH (4) OF THIS 12
SUBSECTION EQUAL TO THE AMOUNT AS ADJUSTED UNDER PARAGRAPH (5) OF THIS 13
SUBSECTION. 14
(2) The Department shall provide an annual grant of at least $167,000,000 15
to the Washington Suburban Transit District to be used only to pay the capital costs of the 16
Washington Metropolitan Area Transit Authority. 17
(3) The [grant] GRANTS required under [paragraph (2) ] PARAGRAPHS 18
(2) AND (4) of this subsection [is] ARE in addition to the appropriation required under 19
subsection (f)(1) of this section. 20
(4) (I) FOR FISCAL YEAR 2029 AND EACH FISCAL YEAR 21
THEREAFTER, THE DEPARTMENT SHALL PROVIDE AN ANNUAL GRANT OF AT LEAST 22
$150,000,000 ADJUSTED AS REQUIRED UNDER SUBPARAGRAPH (II) OF THIS 23
PARAGRAPH FOR THE STATE’S PROPORTIONATE SHAR E OF THE METRORAIL 24
OPERATING SUBSIDY ALLOCATION FORMULA. 25
(II) FOR EACH FISCAL YEAR AFTER FISCAL YEAR 2029, THE 26
APPROPRIATION UNDER THIS PARAGRAPH SHALL BE EQUAL TO THE AMOU NT OF 27
THE APPROPRIATION FOR THE IMMEDIATELY PRECEDING FISCAL YEAR INCREASED 28
BY 3%. 29
SECTION 2. AND BE IT FURTHER ENACTED, That: 30
(a) Section 1 of this Act is contingent on: 31
(1) the Commonwealth of Virginia enacting legislation that provides 32
dedicated capital funding for the Washington Metropolitan Area Transit Authority that 33
includes: 34
SENATE BILL 281 5
(i) a mandatory appropriation for the Commonwealth of Virginia’s 1
proportionate share of the Metrorail Operating Subsidy Allocation Formula; and 2
(ii) an annual 3% increase to the mandatory appropriation; and 3
(2) the District of Columbia enacting legislation that pro vides dedicated 4
capital funding for the Washington Metropolitan Area Transit Authority that includes: 5
(i) a mandatory appropriation for the District of Columbia’s 6
proportionate share of the Metrorail Operating Subsidy Allocation Formula; and 7
(ii) an annual 3% increase to the base amount of capital funding. 8
(b) The Department of Transportation shall notify the Department of Legislative 9
Services in writing within 5 days after both the Commonwealth of Virginia and the District 10
of Columbia have enacted legislation that meets the requirements of subsection (a) of this 11
section. 12
(c) Section 1 of this Act shall take effect on the date that the Department of 13
Legislative Services receives notice under subsection (b) of this section. 14
SECTION 3. AND BE IT FURTHER ENACTED, That, subject to Section 2 of this 15
Act, this Act shall take effect June 1, 2026. 16