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Environment department outlines FY26 capital priorities: lead service lines, PFAS, Bay Restoration Fund and flood mitigation

2381951 · February 24, 2025
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Summary

Maryland Department of the Environment presented a $412 million FY26 capital request focused on drinking and wastewater upgrades, lead service line replacement planning, PFAS response, Bay Restoration Fund investments and flood mitigation, while DLS queried project readiness and the use of federal IIJA/IRA funds.

Andrew Grama of the Department of Legislative Services summarized the Maryland Department of the Environment’s (MDE) fiscal 2026 capital analysis, highlighting federal Infrastructure Investment and Jobs Act (IIJA) and Inflation Reduction Act (IRA) funds impacting the FY26 budget and noting that those sources taper in later years.

Grama said DLS wants MDE to explain encumbrance schedules and project readiness for federal funds routed through the Water Quality Revolving Loan Fund and the Drinking…

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