The Budget and Taxation Committee advanced House Bill 1424 after members reviewed a reprint that would allow state special funds to be used to help federal workers who suffer financial hardship from federal facility closures, relocations or mass layoffs.

The reprint instructs the catastrophic event account may be used for financial hardships caused by closures, relocations or mass layoffs and creates a Federal Government Employee Assistance Loan Fund that would make no‑interest loans to eligible former federal employees. The bill authorizes the Maryland Department of Labor to establish eligibility criteria and to hire a third‑party vendor to administer the program. The fund currently has no capital; the reprint authorizes the governor to transfer $1,500,000 into the fund by budget amendment and contemplates a potential $5,000,000 transfer to capitalize the loan program if the governor so amends the budget.

A staff presenter summarized program mechanics, saying the loan portion of the bill “modifies that for no interest loans for people who are in the changes are in immediately preceding 6 months, were terminated from employment due to closure relocation or mass layoff” and that Labor would be able to forgive loans under specified circumstances. The reprint also permits Labor to establish additional eligibility criteria and to contract for software and administrative services in anticipation of capitalization.

The bill further expands authority for the Office of the Attorney General to investigate and, when appropriate, prosecute matters involving residents who are “inappropriately denied federal benefits” or other entitlements. The mandatory appropriation for the Attorney General in the reprint increases from $1,000,000 to $2,500,000 and strikes the previous five‑employee cap. The reprint also includes a requirement for research and a report on foreclosure activity affecting federal employees and directs certain transfers to be subject to review and comment by the Legislative Policy Committee.

Senator Hetleman asked whether the change would allow the Attorney General to sue the federal government on behalf of residents denied federal benefits; a staff member answered, “Yes, yes. That's exactly what it is,” and clarified it would cover Social Security and other federal benefits that residents are personally entitled to but are being wrongfully denied.

Committee members noted the bill designates the act as an emergency measure and extends the governor's transfer authority through the first quarter of 2026 for the transfers described in the reprint. After brief comment and a motion to move the bill favorably as amended, the committee approved the bill. The motion was made and the committee indicated approval by voice; no roll‑call tally was provided in the transcript.

The committee record shows members also requested a small title amendment to add language noting protection of federal benefits in the bill title. The presenter reminded members the loan fund currently lacks capital and that program implementation is contingent on future budget action to fund the loan account.

If enacted as reprinted, the bill would (1) authorize new allowable uses for the catastrophic event account, (2) create criteria and administrative authority for a no‑interest loan program for displaced federal workers subject to capitalization by the governor, (3) expand the Attorney General's investigatory and prosecutorial authority related to improperly denied federal benefits, and (4) increase the Attorney General's mandatory appropriation from $1,000,000 to $2,500,000.