Governor Hogan announces a bipartisan agreement to increase transportation and infrastructure funding for local governments

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ANNAPOLIS, MD– Gov. Larry Hogan on Friday announced a bipartisan agreement to dramatically increase funding for critical transportation and infrastructure projects for local governments to advance priority projects. The governor made the announcement while hosting a reception for the Maryland Mayors Association at Government House.

“Since taking office, our government has made a commitment to channel more transportation to the local level, and this agreement ensures that will be the case for years to come,” Gov. Hogan said. “These grants will provide important resources to our counties and municipalities to address critical needs and advance priority projects in all jurisdictions. For eight years, our administration has fought on behalf of our district leaders and mayors to increase these funds, and I want to thank our partners in the General Assembly for working with us to make this happen.”

This bipartisan agreement will increase the share of transportation local governments receive through Highway User Revenue (HUR) grants beginning in FY24. In FY24, the percentage of transportation financing for local jurisdictions will increase from 13.5% to 15.5%, and by FY27 the percentage will increase to 20%. Without action, these grants would have been reduced from fiscal 24. Overall, local jurisdictions will receive US$663 million more in transportation from FY24 through FY27 than under current law.

This agreement builds on legislation the governor passed in 2018 to increase funding for these grants, which had been cut by 90% under the previous administration. State investments in transport and infrastructure remain unaffected by the agreement.

This was one of the governor’s priorities in the budget negotiations that resulted in the announced historic tax break package earlier this week. It is also a top priority for the Maryland Association of Counties and the Maryland Municipal League.

On Wednesday, Governor Hogan addressed the American Association of Port Authorities Legislative Summit, where he touted Maryland’s historic investments in the Port of Baltimore and discussed implementation of the federal Infrastructure Investments and Jobs Act.


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