Bill would add Baltimore light rail overhaul to GARVEE bond uses, sponsor says

Delegate Mark Edelson told the Appropriations Committee that House Bill 105 would add the Baltimore light rail modernization and overhaul project to the list of uses eligible for GARVEE (grant anticipation revenue) bonds. "This year, in the CTP, we have the light rail modernization and overhaul project in Baltimore City. It's fully programmed in the CTP. It's a big priority of the governor, and the intent is to use GARVE bonds in order to fund this project so we don't have to use cash on hand," Edelson said.

Edelson described GARVEE bonds as debt that is repaid with future federal formula funds and recounted the statute's history: a 2007 authorization for GARVEE bonds and a 2023 expansion (SP 24, codified at chapter 455) that raised the cap to $1 billion and listed prescribed projects. He said the light rail overhaul is programmed in the Consolidated Transportation Program (CTP) but was not among the originally prescribed GARVEE projects; HB 105 would amend the prior authorization to include the light rail project.

Maryland Department of Transportation provided a letter of support with technical amendments to clarify that GARVEE proceeds could be used for the overhaul project broadly, not only for replacement vehicles. Edelson said the committee would consider a conforming amendment to match MDOT language. No committee vote was recorded in the transcript after the presentation.

If passed, the bill would expand the set of projects eligible for GARVEE financing; fiscal details and the effect on spending caps would be recorded in the bill's fiscal notes and implementing actions by MDOT.