Subject
title
2026 State Legislative Priorities (including Legislative Bond Initiatives)
end
Department
City Manager's Office (CMO)
Recommendation
Staff recommends that the Mayor and Council (i) receive the presentation, (ii) discuss the proposed 2026 State legislative priorities, and (iii) direct staff to bring forth a resolution that includes the approved 2026 State legislative priorities.
Discussion
Purpose:
The purpose of this work session is to provide the Mayor and Council with an overview of the proposed 2026 State legislative priorities, and for staff to receive direction on priority legislative/policy issues that the City will advocate for in the upcoming General Assembly Session.
Feedback on the questions below is needed from the Mayor and Council to guide the next step:
1) Does the Mayor and Council support the proposed priorities?
2) Does the Mayor and Council have other priorities?
Background:
Staff seeks broad direction from the Mayor and Council regarding topics they would like to include in Rockville's 2026 State Legislative Priorities program. With Mayor and Council direction, staff will return on October 6 with a resolution for adoption that includes the approved 2026 State Legislative priorities. This staff report includes proposed 2026 State legislative priorities for the Mayor and Council's consideration, including Legislative Bond Initiatives.
The work session continues the Mayor and Council's consideration of Rockville's 2026 State legislative priorities. The discussion began on June 9, 2025, when the Mayor and Council approved three MML Legislative Action Requests that were forwarded to the League for consideration as 2026 priorities. This agenda item is a comprehensive package of all issues that will be included in Rockville's 2026 State legislative priorities program. The 448th General Assembly Session will begin on January 14 and conclude on April 13, 2026.
As Maryland prepares for its 2026 legislative session, State leaders face a convergence of fiscal uncertainty and political transition, with this being the final session before the June 2026 primaries and the November Election. In the last year of a four-year election cycle, there are typically fewer bills introduced. When the 448th General Assembly convenes in Annapolis, lawmakers will do so against the backdrop of a deepening budget shortfall, driven largely by anticipated federal job losses and grant reductions that threaten to erode State revenues.
Compounding the challenge, the enacted Federal budget reconciliation bill modifying Medicaid eligibility is projected to strip coverage from 175,000 Marylanders and cost the state approximately $2.7 billion annually through 2028. In response, the Moore administration has already instituted cost-containment measures, including a hiring freeze and voluntary buyouts to close a general fund gap. Further analysis is underway: Comptroller Brooke Lierman's Office will soon release a report and online tool modeling the impact of federal cutbacks, while the Board of Revenue Estimates is reviewing how federal policies could reshape State revenues, with findings due in late September. Staff will share the information with the Mayor and Council after it is released. Although precise fiscal and election outcomes remain uncertain, legislators are bracing for significant challenges.
Affordable housing is expected to be a major focus in the upcoming legislative session. The issue, a long-standing priority for Rockville, was underscored by Governor Wes Moore at the Maryland Association of Counties summer conference in August as a challenge that will require close coordination between the State and local governments. To address it, the Moore administration is working on proposals that may include streamlining permitting processes, making public land available for housing development, setting and tracking statewide housing goals, and offering incentives to jurisdictions that adopt pro-housing policies.
Moore cited data showing that half of Maryland renters spend more than 30 percent of their income on housing and that the state ranks 43rd nationally in affordability. Lastly, the Governor's staff lead on housing legislation has left the Administration to serve as Assistant Secretary of the new Division of Business Development within the Maryland Department of Housing and Community Development. This session also carries added significance, as it represents the Governor's last opportunity to advance priorities before the 2026 primary election. In the 2026 Session, staff and the City's State lobbyist will monitor this issue and will keep the Mayor and Council informed.
Proposed 2026 State Legislative Priorities
Rockville's 2026 proposed State legislative priorities consist of the following:
* Approved 2026 MML Legislative Action Request Priorities
* 2026 MML Legislative Committee Recommended Priority
* Returning Priorities from the 2025 Session
* Ongoing State Legislative Priorities
Similar to previous years, a "Watch List" has been developed for issues of interest that staff and the City's State lobbyist will monitor. Should legislation be introduced that aligns with watch list items, staff will bring it to the Mayor and Council for consideration and potential action.
Please see the section entitled "Watch List" on page six of this staff report for additional information.
The following proposed priorities are specific issues to advocate for and advance in the 2026 General Assembly Session.
2026 Priorities Adopted To Date
At the June 9 meeting, the Mayor and Council approved three 2026 priorities for submittal to the Maryland Municipal League (MML) as Legislative Action Requests. The approved requests are as follows:
* Legislation That Would Preserve Municipal Highway User Revenue and State Aid for Police Protection
This legislation would preserve municipal Highway User Revenue (HUR) allocations as prescribed in State law for FY27 and beyond, as well as State aid for Police Protection funding (formula-driven) used to supplement resources for police protection in counties and municipalities. Rockville's FY26 HUR allocation is projected at $4.7 million, and FY26 Police aid allocation from the State is $1.1 million.
The MML Legislative Committee (LC) did not select this as a stand-alone priority to recommend to the Board for approval at their September 12 meeting. Rockville will advocate for this approved priority in the 2026 Session. However, the Modernize Municipal Revenue Structure priority recommended by the MML LC includes all municipal revenues, including HUR and Police aid. See section entitled "2026 MML Legislative Committee Recommended Priority" for additional information.
* Statewide Stop Sign Monitoring Systems Legislation
This legislation would authorize the use of Stop sign monitoring systems in school zones and provide authority for all counties and municipalities to implement this technology. Currently, jurisdictions in Prince George's County, Baltimore City, and Takoma Park are authorized to operate these systems under an existing pilot program. MML's LC did not select this priority to recommend to the Board for approval at their September 12 meeting. The City supported HB 1032 in the 2025 Session, sponsored by Delegate Palakovich Carr, which would have extended this authority, including to Montgomery County (failed).
Although MML's LC did not select this issue as a 2026 priority in their recommendation to the Board, if approved, the City will advocate for this priority in the 2026 Session.
* Regional Transportation Authorities Legislation
This legislation would establish regional transportation authorities in three regions: Baltimore, Capital, and Southern Maryland. A transportation surcharge is imposed on these regions on retail sales, use of a taxable service, hotel lodging, and transfer of real property. Thirty percent of the revenue generated in a municipality would be distributed to the municipality (same in counties), and 70 percent is distributed to the State. MML's LC did not select this priority to recommend to the Board for approval at their September 12 meeting. The City supported HB 1370 in the 2025 Session, sponsored by Delegate Spiegel. While House Bill 1370 did not pass, some of the concepts were reflected in an amendment to House Bill 517 - Workgroup on the Reorganization of the Maryland Transit Administration (passed), which established a work group to study ways to reorganize the Maryland Transit Administration to better manage regional versus statewide transportation systems, and Delegate Spiegel joined as a cosponsor of that bill.
Although the MML Legislative Committee did not select this issue as a 2026 priority in their recommendation to the Board, the City will advocate for this approved priority in the 2026 Session
2026 MML Legislative Committee Recommended Priority
MML LC selected and is recommending to the Board to approve the following priority:
* Legislation Modernizing Municipal Revenue Structures
The overarching theme of the recommended 2026 MML priority is that municipalities need to diversify and expand their revenue sources. Eleven out of the nineteen 2026 LARs received by MML's LC were related to municipal revenues. The LC recommendation provides MML staff with flexibility to potentially work several revenue bills strategically through the 2026 Session, if approved, which may include the Admissions and Amusement Tax Expansion bill and/or a local government (counties and municipalities) revenue workgroup bill. The Admissions and Amusement tax enabling legislation was an MML and a Rockville priority in 2024 and 2025. The proposal would authorize up to a 3% local food and beverage fee for on-site consumption. The legislation would allow municipal governments to hold public hearings to assess the viability for each jurisdiction. A local government revenue workgroup bill would establish a workgroup to review municipal and county revenue structures. When MML releases additional details, staff will share the information with the Mayor and Council.
Returning Priorities from the 2025 Session
* Legislation to Support Funding for Youth Service Bureaus and Initiatives for Teens During Out-of-School Hours.
This priority focuses on advocacy for youth and at-risk youth programming, including:
o Youth Service Bureau funding restoration;
o Out of school activities; and
o Juvenile services for youth involved in repeat crimes who do not have access to restoration services support.
In the 2025 Session, the City supported, House Bill 814 - Department of Juvenile Services - Report on Youth Service Bureaus (passed), which requires the Department of Juvenile Services (DJS) to report to the Senate Judicial Proceedings Committee and the House Judiciary Committee by October 1, 2025, and each October 1 thereafter, on (1) efforts by DJS to promote predelinquent programs, including YSBs; (2) efforts by DJS to collaborate with and provide technical assistance to local governments regarding the establishment, use, and funding of YSBs; (3) an assessment of the programs and activities conducted by YSBs; and (4) any other efforts to prevent youth offenses. The bill did not include provisions for funding. If this priority is approved, the City will continue to advocate for dedicated funding for Youth Service Bureaus and related initiatives in the 2026 Session.
* Legislation Strengthening Tenant Protections
o Advocate for Just Cause Eviction Legislation
Delegate Jheanelle Wilkins (Montgomery County Delegation) has been the lead sponsor on this bill, which has been introduced for several years. The legislation would authorize a County to enact local laws or ordinances that prohibit a landlord from failing to renew a lease during the lease period or seeking to terminate a holdover tenancy without good cause, as specified. Essentially, landlords could not evict a tenant or refuse to renew a lease without a reason. The City supported the bill in the 2025 Session (failed). If this priority is approved, the City would continue to advocate for Just Cause Eviction legislation in the 2026 Session.
o Advocate for Landlord-Tenant Residential Leases Fee Disclosure Legislation
In the 2025 Session, the City supported Delegate Vogel's House Bill 1257 - Landlord and Tenant - Residential Leases - Fee Disclosures (failed). The legislation would have required landlords to provide prospective tenants with a written, itemized list of all potential fees, including: (1) the reason for each fee, (2) the amount, (3) whether the fee is mandatory or optional, and (4) when it is due. The bill also stated that landlords could not charge undisclosed mandatory fees, and any lease provision that failed to meet these requirements would have been unenforceable. If approved, the City will continue to advocate for this legislation in the 2026 Session.
Ongoing Rockville 2026 State Legislative Priorities
* Legislation that Would Expand Access to the State Property Tax Credit to Low and Medium-Income Homeowners, Including Senior Residents, and Individuals with Disabilities to Provide Relief from Inflationary Pressures and Cost-of-Living Increases
This priority would expand the eligibility for the State Homeowner's Property Tax Credit. Low and moderate-income, including senior residents, and individuals with disabilities would benefit by receiving some relief from inflationary pressures driving cost-of-living increases. This was a 2024 and a 2025 Rockville State legislative priority. Legislation on this topic was not addressed in the 2025 Session.
* Advocate in Support of the City's Vision Zero and Pedestrian Master Plan Efforts, including:
o Advocating for a comparative negligence law that allows pedestrians to claim damages at the percentage to which they are determined to be at fault in a vehicle crash.
o Revising the State transportation code to make it clear that the State is responsible for maintaining all transportation facilities, including sidewalks, and streetlights at State intersections along State roadways, and providing dedicated State funding for such maintenance.
o Advocating for the State to mitigate the increase in streetlight outages in support of pedestrian safety and to address increased overtime for City Police to maintain safety and direct traffic during outages.
o Advocating for Don't Block the Box legislation that would prohibit a vehicle facing a green or yellow signal from entering an intersection if the vehicle is unable to proceed completely through the intersection.
o Advocate for additional complete streets implementation along MD 355, Veirs Mill Road, and all State roads with high numbers of crashes or fatalities.
* Advocate for Legislation Supporting Rockville's Climate Action Goals of Reducing Greenhouse Gases, Prioritizing Equity, and Building Resiliency.
* Advocate for Increased Senior Transportation Services, Recreation and Wellness Programs, Senior programs in Neighborhoods, Aging-in-Place and Village Initiatives, and Senior Outreach.
Proposed Legislative Bond Initiative Options
Staff recommends two options for the Mayor and Council's consideration, as the District 17 Delegation prefers to have more than one legislative bond initiative project to consider. Additionally, staff requests that the Mayor and Council provide approval for staff sharing the two potential priority projects with the District 17 Delegation, and for direction on the ranking of priorities by order of importance. Staff will update the Mayor and Council on the option that gains majority support from the District 17 Delegation. Staff will keep the Mayor and Council informed and engaged.
Project Option #1 - Twinbrook Park and Dogwood Park Pedestrian Bridge Replacement
This option entails requesting funding for both pedestrian bridge projects.
Twinbrook Park Pedestrian Bridge Replacement
This project supports the Mayor and Council's Vision Zero program and City and State goals to prioritize equity and inclusion. By upgrading the pedestrian bridge infrastructure, pedestrians, cyclists, and those who roll can safely access Twinbrook Park, Twinbrook Community Recreation Center, and Twinbrook Elementary School. This pedestrian bridge also provides a route to the Twinbrook Metro Station.
This project provides funding to design and construct the replacement of a steel truss pedestrian bridge within Twinbrook Park, crossing a Rock Creek tributary, and provide a path to and from school for neighborhood children.
Legislative Bond Initiative Funding Amount: $570,000, with $150,000 for design funded in FY27 and $420,000 in FY28 for construction.
The Department of Recreation and Parks is likely to submit this project for CIP funding within FY27-31
Dogwood Park Pedestrian Bridge Replacement
This project supports the Mayor and Council's Vision Zero program and City and State goals to prioritize equity and inclusion. By replacing this pedestrian bridge infrastructure, pedestrians, cyclists, and those who roll can safely access the heavily used Dogwood Park, Bayard Rustin Elementary School, and Julius West Middle School.
This project provides funding to design and construct the replacement of a steel truss pedestrian bridge within Dogwood Park, crossing Cabin John Creek, and provides a path to and from school for neighborhood children.
Legislative Bond Initiative Funding Amount: $570,000, with $150,000 for design funded in FY27 and $420,000 in FY28 for construction.
The Department of Recreation and Parks is likely to submit this project for CIP funding within FY27-31.
Project Option #2 - Mattie J.T. Stepanek Park Gender Neutral Restroom
The project includes the design and construction of converting a storage space within the concession building into a single-user, accessible restroom. Mattie J.T. Stepanek Park is a 28-acre park with one of the city's largest playgrounds and a dog park, and is heavily visited by the community daily. The park hosts hundreds of programs annually, including sports leagues and classes (flag football, soccer, football, pickleball, tennis, etc.). This project supports the City and State goals to prioritize equity and inclusion.
Funding Amount: $150,000
Bond Bill Request Amount - $150,000
This project supports improved customer service for Rockville residents, accessibility and inclusion for the community and staff, and modernization of outdated facilities.
The Recreation and Parks Department is likely to submit this project for CIP funding within FY27-31.
Watch List Items
The following is a listing of issues of interest to the Mayor and Council that staff and the City's State lobbyist will monitor and bring forward legislation for consideration by the Body:
* Legislation supporting native plant and animal species and restricting invasive species, including measures for spotted lanternfly mitigation and eradication, in alignment with Rockville's efforts.
* Legislation related to tenant issues and protections.
* Legislation that would impact Rockville's development review process and/or local planning and zoning authority.
* Legislation that enhances pedestrian, bike safety, and transportation safety.
* Legislation related to financial empowerment.
Mayor and Council History
In the fall of each year, the Mayor and Council discuss, select, and approve a comprehensive State legislative priorities program for the upcoming General Assembly Session.
Next Steps
Should the Mayor and Council choose to provide broad direction on 2026 Rockville State Legislative Priorities, staff will return on October 6, 2025, with a resolution that includes the selected priorities for adoption.
Rockville's approved 2026 State legislative priorities will be highlighted at the Legislative Priorities hearing before the Montgomery County Delegation on November 19, 2025. Rockville and its State lobbyist will collaborate with District 17 and other stakeholders to advocate for the adopted priorities in the 2026 General Assembly Session.