House advances bill to let governor move catastrophe funds, expands aid and legal authority for federal workers

House Bill 14-24, which would expand the purposes of Maryland's catastrophic event account and the federal government employee assistance loan fund to help residents affected by federal closures, mass layoffs or similar events, advanced in the House on March 4 after committee amendments were adopted.

The measure, as amended, authorizes the governor to transfer $5,000,000 to a federal employee assistance fund and $1,500,000 to the attorney general to assist state residents who are federal employees and are not being paid because of a federal shutdown or who are separated from federal employment on or after Jan. 1, 2025. The amendment also expanded the attorney general's authority related to protecting affected residents, and the sponsors moved to make the bill an emergency measure "given what's happening right now in D.C.," language the House adopted.

Why it matters: Delegates said the change is meant to give Maryland more tools to help residents and local governments when federal workforce reductions ripple into state and local budgets. The sponsor told the chamber Maryland has roughly 146,000 federal workers who live in the state and said a wave of job losses would "disproportionately affect our state budget" and local services.

Debate and questions: The minority leader pressed for details about existing balances in the catastrophe and federal-employee funds. The majority whip replied that the catastrophic event account is typically funded as events occur and that prior allocations have often been used; the bill would allow the governor to move money from the rainy day fund into the assistance account.

A sustained back-and-forth focused on the role of the attorney general. The minority leader asked why the state's attorney general would act on behalf of individual federal employees instead of leaving those cases to private labor counsel. The sponsor replied the authority is intended to provide an additional, statewide legal avenue for workers, saying the bill is part of "a multi-pronged strategy" that includes bolstering unemployment insurance and other supports. The sponsor added that Maryland values public service and said the measure would "stand up" for federal workers and the communities that rely on them.

Action taken: The House adopted the committee amendments, the favorable report as amended, and then special-ordered the bill until an "appropriate time" the next day for further action.

What the bill does not do yet: The House did not adopt final passage; delegates voted to special-order HB 14-24 to allow additional time for amendment and consideration. Specific eligibility rules, program administration details and timelines will be resolved in final drafting and implementing regulations.

Next steps: HB 14-24 was special-ordered for consideration the next day; sponsors and the minority said they would continue discussions and circulate potential amendments.