Agriculture department seeks funding for new LEAF program as BRFAA, federal grants reshape fiscal 2026 budget

The Maryland Department of Agriculture (MDA) told the subcommittee that its fiscal 2026 budget includes a reduction in some grant lines, planned new positions and a proposed new LEAF (Leaders in Environmentally Engaged Farming) program that remains uncertain because of Budget Reconciliation and Financing Act (BRFAA) changes and differing fiscal notes.

DLS analyst Mr. Gray (Department of Legislative Services) presented an overview of the department’s allowance and recommended actions. The agency’s operating total was presented as $125.9 million in the fiscal 2026 allowance, a net decrease that includes contingent reductions tied to BRFAA and federally funded program swings. Gray noted the department reverted about $2.2 million of Tree Solutions Now Act funding from fiscal 2024 and that the BRFAA proposal would reduce the tree-planting appropriation in future years.

Why it matters: The department manages conservation programs, agriculture support and emergency responses (including to highly pathogenic avian influenza). Changes to the department’s special and federal fund mix affect rural grants, cover-crop and conservation programming and inspection responsibilities for emerging needs such as electric vehicle charging station inspection.

Key points from the hearing: - LEAF program and tree-planting funding: MDA described a new Leaders in Environmentally Engaged Farming (LEAF) program, envisioned as a certification/recognition and incentive program for conservation and community engagement practices on farms. The governor’s budget proposes $900,000 for LEAF administration and grants; DLS recommended reducing the appropriation to $500,000 if the bills establishing the program do not pass and restricting $100,000 pending a program report. DLS flagged that BRFAA would cut a separate tree-planting appropriation from $2.5 million to $500,000. - Positions and vacancies: DLS said the allowance creates about 6 new positions (including a 0.3 FTE conversion to full time for an assistant attorney general) and 8 contractual conversions — a net sample increase of 14.3 full-time equivalents in MDA’s personnel table. The agency told the committee its vacancy rate has improved since the December data cited by DLS but DLS asked MDA to explain a substantial vacancy-rate increase reflected in the submission data. - Highly pathogenic avian influenza (HPAI): DLS asked MDA to update the committee on federal reimbursement for outbreak response. MDA staff said there were reimbursement delays but they have recently received USDA approvals and federal funding is beginning to flow for HPAI response work. - Electric vehicle charging inspection: DLS noted prior committee narrative and legislation left open who will be responsible for reliability and accuracy oversight of EV charging stations. MDA currently handles accuracy but not reliability; DLS’s cost estimate showed MDA performing reliability oversight would be higher than alternatives such as the Public Service Commission. DLS requested MDA to explain any further discussions about who will assume reliability responsibilities and whether the FY26 budget includes adequate inspection funding. - Rural program cuts and other grant changes: DLS flagged reductions to Rural Maryland Council grants and the phase-out of Tri-County Council funding, Marbidco funding reductions (noted as the authority being fiscally self-sufficient), and recommended committee narrative requesting agency reporting on several priority projects and grant outcomes.

Agency testimony and follow-up actions: The department noted it expects renewed federal reimbursements for HPAI work and defended several staffing requests tied to regulatory responsibilities (food-processing residuals inspectors, animal health positions for HPAI response, and LEAF staffing). DLS recommended restricting funding where statutory authorizations are not finalized and asked MDA for a report on vacancy-rate changes, HPAI federal reimbursement communications, LEAF program scope and long-term funding, and the department’s plan for EV inspection costs.

Ending: Committee members pressed the agency for specific details on federal funding timelines, program reporting and how LEAF would be funded long term. DLS recommended specific reductions and restrictions (including $2 million deletion for federal funds that are not expected to be realized). No formal votes were taken at the hearing.