Medco budget hearing highlights new site‑readiness and infrastructure funds; witness urges ending MIDC grant over Israeli arms concerns

The Maryland Economic Development Corporation (Medco) briefed the House Appropriations Education and Economic Development Subcommittee on several new and existing economic development programs and capital projects, and one public witness asked the committee to reallocate a grant made to the Maryland Israel Development Center (MIDC).

Elizabeth Weibel, DLS analyst, outlined two new programs included in Medco’s dedicated purpose account for fiscal 2026: a $10,000,000 strategic infrastructure revolving loan fund to provide loans for real estate and infrastructure projects targeting underutilized properties with job growth potential, and a $7,000,000 certified sites matching grant program established by executive order to prepare sites for business attraction. Weibel said the strategic infrastructure fund could support three to four major projects in FY26 and described Medco’s broader balance sheet and operating facilities, noting some underperforming assets (the Chesapeake Bay Conference Center and a student housing facility) that affect net asset presentation.

Weibel also summarized capital projects: a cannabis business incubator (required by the 2023 Cannabis Reform Act) planned as a renovation of the Catonsville armory with $7,000,000 in pay‑go funding for FY25–26; Viva White Oak’s mixed‑use development (previously preauthorized for $6,000,000 in GO bonds); and the Principio rail spur to serve a planned calcined clay plant in Cecil County (preauthorized in FY25 but not yet in the FY26 capital budget). Weibel warned that lenders had granted forbearance on some project debt service at the conference center and that Medco expects to sell one underperforming student housing asset in the near term.

Tom Sadowski, Medco’s executive director, stressed Medco’s financing role and recent activity: the agency has issued about $8 billion in revenue bond financing over 40 years and had a record $1.2 billion in calendar‑year 2024 issuances, Sadowski said. He highlighted partnerships with federal research entities, transit‑oriented development efforts with the Maryland Department of Transportation, and increased investment in minority‑owned small businesses (Medco reported investing roughly $58 million in the prior fiscal year). Sadowski described Medco’s priorities as aligning with the governor’s economic strategy and said Medco supports the new site readiness and strategic infrastructure programs.

During public testimony, Susan Kern of the Maryland chapter of the Arab American Anti‑Discrimination Committee urged the subcommittee to end an annual grant to the Maryland Israel Development Center (MIDC). Kern alleged MIDC recruited Israeli defense firms and argued state support for MIDC implicated Maryland in human rights harms; she requested that the appropriation be redirected to “life affirming business development enterprises.” Kern referenced specific firms and incidents in her testimony.

Medco said it will continue program implementation and project management for the items identified in DLS’s analysis. The committee did not take formal votes during this hearing.