Military leaders outline $35.5M allowance, Free State Challenge Academy closure and 175th wing cyber conversion
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DLS noted a $10.2M decrease in the Military Department FY27 allowance driven in part by the Free State Challenge Academy closure; the Adjutant General said facility repairs (~$4M) are underway with anticipated completion in June and that the Air Guard’s 175th wing is converting to a cyber mission with no FY27 budget effect.
The Maryland Military Department told the Appropriations subcommittee the FY27 allowance reflects shifting program needs, the Free State Challenge Academy (FCA) closure, and ongoing facility and personnel adjustments.
DLS analyst Yashoda Rai said the department’s FY27 budget decreases by about $10.2 million versus FY26 and that the fiscal 27 allowance totals roughly $35.5 million, with 55.4% appropriated for personnel expenses. An $8.3 million portion of the decrease is tied to the FCA closure, which includes abolishing 47 positions in FY27. DLS asked the department to clarify why three FCA positions remain budgeted and requested a detailed accounting of renovation funds and status.
Major General Janine Birkhead, the Adjutant General, said the Guard delivers a 3:1 federal match on state investments and urged retaining $1 million in operations and maintenance to preserve readiness and federal funding. On FCA, she said the facility needs significant repairs and that the department is coordinating with the National Guard Bureau and Department of General Services. Officials estimated about $4 million of improvements are underway and contractors expect work to be completed by June.
On military missions, Birkhead confirmed the transition of the 175th Wing to a cyber mission. She said the change is manpower neutral and expects no FY27 budget impact, while acknowledging some operations and maintenance staff may retire or transfer.
On the TRICARE premium reimbursement (Health Care for Heroes) program, witnesses said roughly 6,500 Guard members are eligible, with current enrollment in the 1,200–1,400 range and average reimbursements around $160 per enrolled member. Officials noted the program has contributed to recruiting and retention.
What’s next: DLS requested follow‑up information on the number of members eligible for TRICARE premium reimbursement, the average premium amounts, and more complete accounting for the FCA facility improvements and position reallocation plans.
