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Military Department budget funds Free State Challenge Academy cohort capacity and expands TRICARE reimbursement
Summary
DLS review and Military Department testimony highlight funding to restore Free State Challenge Academy capacity, a TRICARE premium reimbursement expansion and transition activity tied to Air National Guard units; DLS recommends deleting long‑term vacant positions and requests reports on vacancies and program metrics.
The Maryland Military Department’s fiscal 2026 allowance increases modestly as the Department of Legislative Services recommended staffing adjustments and sought updates on the Free State Challenge Academy (FCA) and TRICARE premium reimbursements.
Yashoda Aray, the DLS analyst for the Military Department, told the subcommittee the department’s fiscal 2026 budget increases by approximately $1.8 million after accounting for two proposed FY2025 deficiency approvals and that the department’s total FY2026 allowance is displayed in DLS exhibits as about $45.5 million. Aray highlighted two proposed FY2025 deficiency appropriations: roughly $2.6 million to support FCA’s full cohort capacity of 300 cadets and $70,000 for National Guard members deployed for hurricane response.
DLS noted FCA performance measures that remain below target: FCA’s enrolled students were 166 in fiscal 2024, the GED pass rate fell to 34 percent (the lowest between FY2020–24) and FCA had not met its 80 percent post‑graduation goal for continuing education, employment or military service. DLS recommended deletion of five long‑term vacant positions (reducing general funds by about $86,000 and federal funds by about $196,000) and requested committee narrative for reports on vacant positions and FCA staffing and renovation status.
DLS also described the TRICARE premium reimbursement program. Chapter 745 of 2024 removed a prior reimbursement cap and DLS said the monthly reimbursement cap increased to $150; DLS cited reported average premiums that the department provided (effective January): about $83 per month for member‑only plans and $3.50 per month for family plans per the department’s submission. Aray recommended a committee narrative asking the department for participation and claim data and plans to increase enrollment.
Dave Fallucci, chief of staff for the Maryland Military Department, emphasized personnel as the agency’s critical asset and said the department had filled seven of nine long‑standing vacancies and did not concur with deleting the five long‑term vacant positions. Fallucci described FCA as a 22‑week, tuition‑free residential program with a typical graduation of about 200 cadets per year and said the department values the program’s preventive role in juvenile services. He also noted the department’s Health Care for Heroes enrollment and thanked executive branch partners for budget support.
DLS requested updates on facility renovations for FCA and asked the department to comment on how transitions among fighter squadrons — including a transition of the 121st fighter squadron to Maryland and divestment plans affecting the 104th — will affect departmental operations. Military Department officials deferred detailed comment on interjurisdictional aircraft transfers to the governor’s office and said they would coordinate with the committee as those plans become final.
Why this matters: the FCA serves a statewide juvenile‑prevention role and TRICARE reimbursement expansion affects member benefits and personnel readiness. DLS recommended targeted deletions for long‑term vacancies and requested further reporting to inform budget decisions.
