ANNAPOLIS, MD—Governor Larry Hogan today announced that the State of Maryland has submitted its annual report on the performance of the 2022 U.S. Rescue Plan, State and Local Fiscal Recovery Funds (SLFRF) to the United States Department of Treasury . The report – which details spending from March 3, 2021 to June 30, 2022 and includes planned allocations for fiscal year 2023 – outlines the use of funds allocated to the state through the US bailout package (ARP). Read the report.
“The COVID-19 pandemic has resulted in the worst economic collapse since the Great Recession and has caused hardship for people across our state and our nation,” Governor Hogan said. “Using these resources to supplement our aggressive economic relief measures, our state has led one of the strongest health and economic recoveries in America.”
Maryland has implemented a series of economic relief measures throughout the pandemic, including the RELIEF Act, which has provided critical tax relief and economic stimulus to struggling Maryland families, small businesses and those who have lost their jobs due to the global pandemic. The state also has relief initiatives in place to help workers, tenants, restaurants, farmers, small businesses, nonprofits, entertainment venues and local tourism agencies.
In March 2021, Governor Hogan, Senate Speaker Bill Ferguson, and House Speaker Adrienne A. Jones announced a bipartisan plan to allocate the resources the state received under the U.S. bailout. This plan has enabled the state to allocate funds effectively and efficiently to meet urgent needs, kick-start recovery, and help underserved communities. The report includes summaries of expenditures for each project, as well as details on community engagement, equitable outcomes, and project performance. Performance highlights include:
- Protecting jobs and the economy: In February 2020, Maryland’s unemployment rate was 4.2%. Two months later, it rose to 9.5%. In June 2022, the state’s unemployment rate (4.0%) was two tenths of a percent lower than the pre-pandemic rate. In May 2022, Maryland’s labor force participation was 97.5% of February 2020 levels.
- Health Equity Resources: The funds were used to help advance the work of the state’s Vaccine Equity Task Force (VETF) — the first of its kind in the nation — and implement the Resource Act. Maryland Health Equity Grant to provide significant new grants to address health disparities, improve health outcomes, expand access to primary care and preventive services, and help reduce health care costs.
- Universal Broadband: The state’s transformative Connect Maryland initiative to bring universal broadband to Marylanders is using SLFRF and federal funds for coronavirus-related capital projects. Last-mile broadband will improve access to online education and telemedicine.
- Assistance to Marylanders in need: The number of people participating in the Temporary Assistance for Needy Families (TANF) program has increased from around 25,000 before the pandemic to a peak of more than 57,000 during the state of emergency. The State of Maryland used US bailout funds to meet caseload demand, including an increased monthly amount of $100 for Temporary Cash Assistance (TCA) and Temporary Personal Assistance disabilities (TDAP). Additionally, funds have been used to help customers pay their electric and gas bills, helping to reduce statewide arrears to pre-pandemic levels for most utilities. .
- Unemployment benefits: Pandemic-related jobless claims have depleted the state’s Unemployment Insurance (UI) trust fund. As of September 27, 2021, Maryland has repaid the balance of its Federal Unemployment Insurance Loan with the SLFRF, as permitted by the U.S. Treasury Final Rule and Senate Bill SB 811. This action avoided the reduction of the federal unemployment insurance tax credit that was scheduled to kick in in 2022.
State budget officials will continue to monitor spending and project performance to learn more about the impact of these projects on recovery efforts.