County committee backs up to $199.5 million in bonds for MD 355 bus rapid transit
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Summary
The Government Operations and Fiscal Policy Committee recommended unanimously that the full Montgomery County Council consider a resolution authorizing up to $199.5 million in grant anticipation revenue bonds to finance construction of bus rapid transit along central Maryland 355; bonds would be limited obligations payable from the state BRT fund.
The Government Operations and Fiscal Policy Committee on its first session of 2026 gave a unanimous favorable recommendation to the full Council for a resolution that would authorize Montgomery County to issue up to $199.5 million in grant anticipation revenue bonds to support bus rapid transit construction along the central portion of Maryland Route 355.
The recommendation followed a staff presentation that described the proposed bond series as limited obligations of the county, payable solely from funds the county receives from the state bus rapid transit (BRT) fund and not a pledge of the county’s full faith and credit. "This bond series will be limited obligations of the county, payable solely from funds received by the county from the state BRT fund," said Mr. Ambinder during the committee briefing.
OLO and finance staff told the committee the structure transfers state BRT grant funding from annual PAYGO appropriations into long‑term financing and that, because the bonds rely on state appropriations to the BRT fund, future debt service payments would remain subject to appropriation by the state. Mr. Ambinder and finance staff described mitigating options the Department of Finance is considering—reserves, payment mechanics and third‑party mitigants such as bond insurance—and said the county does not expect the issue to affect the county’s AAA general obligation rating.
Nancy Feldman of the Department of Finance told members that, while the county is not legally obligated on these lottery‑fund backed bonds, a default would carry reputational risk. "A default is a default," Feldman said when asked what would happen if state BRT fund receipts proved insufficient.
Chair Stewart called for a vote and announced the committee’s favorable recommendation was unanimous. The committee’s recommendation sends the resolution to the full Council for consideration; the packet notes the bond series is intended to support a recently authorized supplemental appropriation for the county’s central MD 355 BRT capital improvement project.
Next steps: the resolution will be considered by the full Montgomery County Council; the committee did not set a full‑council hearing date during the session recorded in the transcript.
