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Enacted

Maryland authorizes State agencies to withhold payments and place liens for delinquent federal funds

Original title: State Finance - Delinquent Federal Funds (Federal Obligations Enforcement Act)

Last action · April 28, 2026: Approved by the Governor - Chapter 248Sponsors: Katie Hester and 22 others

Companion · HB 706same policy, House version
Introduced
Committee
Floor Vote
Passed
Law

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What This Bill Does

Maryland enacted the Federal Obligations Enforcement Act, allowing the state to withhold payments to the federal government, place s on federal property, and collect delinquent federal funds when the federal government fails to comply with court decisions upholding congressionally approved spending. The law takes effect on July 1, 2026.

Why it matters

Establishes a financial enforcement mechanism allowing the state to recover unpaid federal funds by interrupting transactions and placing claims on federal assets within Maryland borders.

Background
  • The Board of Public Works in Maryland consists of the Governor, the Comptroller, and the State Treasurer, exercising executive oversight over state public works and financial transactions. context
  • The Central Collection Unit is a division within the Maryland Department of Budget and Management responsible for centralizing the collection of all delinquent debts owed to state agencies. context

Who It Affects

Groups the bill's text affects, as described in the record. Being affected is not a position for or against it.

Directly affected

Central Collection Unit

The unit is newly authorized to collect delinquent federal funds, place liens on federal property, and direct payment withholdings.

Directly affected

Board of Public Works

The board is granted the authority to determine by majority vote when the federal government is delinquent in federal funds.

Directly affected

Comptroller

The Comptroller is authorized to withhold state payments to the federal government upon direction from the Central Collection Unit.

Directly affected

Federal Government

Federal property within the state is subject to liens, and federal funds owed to or from the state may be withheld or collected by state authorities.

Key Facts

You don't have to trust us. Each fact below is taken straight from the official document - click any one to see the exact passage, highlighted in the original.

Frequently Asked Questions

What triggers the State's authority to withhold payments from the federal government?
The Board of Public Works must determine by a majority vote that the federal government is delinquent in federal funds due to noncompliance with court decisions upholding congressionally approved spending.
Which agency is responsible for collecting the delinquent federal funds?
The of the Department of Budget and Management is responsible for collecting the delinquent federal funds.
Can the State place liens on federal property under this law?
Yes, the , in consultation with the Attorney General, may place s on federal property in the State under the specified circumstances.

What else do you want to know?

News Coverage

No news coverage found yet. Articles are indexed twice daily.

Where This Stands

Current status: Signed into law.

Procedural history

21 actions
  1. Apr 28, 2026Governor of MarylandEnrolled
    Approved by the Governor - Chapter 248
  2. Apr 13, 2026SenateFloor
    Returned Passed
  3. Apr 13, 2026HouseFloor
    Third Reading Passed (92-33)
  4. Apr 9, 2026HouseFloor
    Second Reading Passed
  5. Apr 8, 2026HouseFloor
    Motion Special Order until 04/09 (Delegate Pippy) Adopted
  6. Apr 8, 2026HouseFloor
    Favorable Adopted
Show 15 earlier actions
  1. Apr 8, 2026HouseCommittee
    Favorable Report by Appropriations
  2. Mar 26, 2026House
    Hearing 3/31 at 1:00 p.m.
  3. Mar 20, 2026HouseCommittee
    Referred Appropriations
  4. Mar 19, 2026SenateFloor
    Third Reading Passed (32-13)
  5. Mar 18, 2026SenateFloor
    Second Reading Passed with Amendments
  6. Mar 18, 2026Senate
    Floor Amendment { 853825/1 (Senator Hester) Adopted
  7. Mar 18, 2026Senate
    Floor Amendment { 543628/1 (Senator Gallion) Rejected (15-26)
  8. Mar 18, 2026Senate
    Floor Amendment { 603425/1 (Senator Ready) Rejected (12-28)
  9. Mar 18, 2026Senate
    Floor Amendment { 103520/1 (Senator Ready) Rejected (13-28)
  10. Mar 18, 2026SenateFloor
    Favorable Adopted
  11. Mar 13, 2026SenateFloor
    Motion Special Order until 3/17 (Senator Ready) Adopted
  12. Mar 13, 2026Senate
    Favorable
  13. Mar 13, 2026SenateCommittee
    Favorable Report by Budget and Taxation
  14. Feb 11, 2026Senate
    Hearing 3/04 at 1:00 p.m.
  15. Feb 6, 2026SenateIntroduced
    First Reading Budget and Taxation

Version history

Only one version on file - nothing to compare yet. As later stages (committee substitute, engrossed, enrolled) are captured, the redline appears here.

View official text →

Lobbying Activity

No state lobbying filings in our records match this bill. Federal lobbying reports (LDA) cover Congress, so they are not listed on state bills.

Full breakdown

Who this bill affects and the strongest case for and against it, written only from the bill’s own text.

Sponsors

Discoveries

1 pattern noticed across the record

Patterns POLISCOPE noticed across the record. These are observations to investigate, not conclusions.

policy shift95% confidence

Intergovernmental Financial Retaliation

The legislation establishes a formal framework for a state to treat the federal government as a debtor, utilizing liens and payment withholdings.

Connected Entities

Attorney General, Department of Budget and Management, Central Collection Unit and 3 more
PersonAttorney General“Legal adviser providing assistance to the Central Collection Unit and Department”Map →
OrganizationDepartment of Budget and Management“Houses the Central Collection Unit.”Map →
OrganizationCentral Collection Unit“Responsible for collecting delinquent accounts and debts owed to the State.”Map →
OrganizationComptroller“Authorized to withhold state payments to the federal government.”Map →
OrganizationState Lottery and Gaming Control Agency“Receives certification of debts for lottery prize interception.”Map →
OrganizationBoard of Public Works“Authorized to determine by majority vote if the federal government is delinquent”Map →

Sources

Open source document

mgaleg.maryland.gov

Analysis Score

0–100
  • Significance85
    How much this matters to a regular citizen
  • Controversy80
    Intensity of disagreement among stakeholders
  • Entertainment25
    Compellingness for a non-policy-wonk reader
  • Buzz75
    Current news / social attention level

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