Subject
title
Consider Approval of the Proposed FY26 Earmark Requests
end
Department
City Manager's Office (CMO)
Recommendation
Staff recommends that the Mayor and Council consider and approve the proposed FY26 earmark requests for submittal to the Federal Delegation.
Discussion
The Mayor and Council will consider and approve FY26 earmark requests at the March 3, 2025, meeting. The Offices of Senator Alsobrooks and Senator Van Hollen invited Rockville to submit requests for projects for which the City wishes to partner with the Federal government and seek funding support. Since this funding mechanism was reactivated, on an annual basis, the Mayor and Council discuss and approve projects for submittal to the Federal Delegation. In FY22 the City was awarded approximately $408,000 for the 6 Taft Cour Emergency Generator. In FY24, the City was awarded five earmark projects totaling $3,912, 252 for the following projects:
• Interoperable Police Radios - $963,000
• Water Main Rehabilitation - $959,752
• Potomac Woods Storm Drain Improvements - $900,000
• Emergency Operations Center - $592,500
• Sewer Main Line Rehabilitation - $500,000
The Senate’s FY26 earmark submittal deadline is March 7, 2025. The House leadership has not established the process and deadline for FY26 earmarks. When a due date is announced, staff will inform the Mayor and Council, and submit the City’s approved FY26 earmarks to Congressman Raskin. The Federal Delegation collaborates on the review and submittal of earmark requests to the House and Senate Appropriations Committees. Rockville’s Federal representatives encourage applicants to submit projects through all three offices. Rockville is following this recommended approach.
The outcome of the FY25 earmark process is unknown. Three Rockville earmark projects totaling $2,701, 171 are under consideration for funding:
• Orangeburg Lateral Replacement - $1,105, 800
• Wastewater Collection System Rehabilitation - $1,105, 800
• Lead Service Line Inventory Investigation - $491, 571
An FY25 continuing resolution is in effect until March 14. The process will not conclude until Congress approves the FY 25 Budget and the President signs it into law. Staff is monitoring the final stages of the FY25 Federal appropriations process. When the Federal Delegation Offices notify the City of the outcome, the information will be shared with the Mayor and Council.
After the Mayor and Council select and approve FY26 earmarks, staff will submit the requests to the Federal Delegation in accordance with the established deadlines.
Timing of Earmarks:
• The earmarks process takes 12-14 months from submittal to receipt of funds, if successful.
• Jurisdictions making requests will be informed in the late spring 2025 as to whether the Delegation submitted any of the requests to the Appropriations Committee.
• Jurisdictions will know by the end of August 2025 as to whether to Appropriations Committee accepted the request.
• If accepted by the Appropriations Committee, the earmark would move through the Congressional budget process.
• To be approved, the earmark must be included in the final budget approved by Congress and signed by the President. That timing typically occurs in early 2026, if there are no delays.
Eligibility and Key Considerations Comments from the Congressional Delegation Staff:
• Earmarks must be shovel-ready projects. Once the funds are received, they are to be spent within approximately 12 months from the time of receipt. Requests for additional time will be considered by the agency awarding the funds.
• Projects that do not have design completed are not eligible.
• Applicants are encouraged to submit more than one project.
• Earmarks do cause project delays. A project can’t proceed to construction until the earmark funding award is received. If the earmark is not accepted, the project can move forward as planned by the jurisdiction.
• Projects that are already under construction are not eligible.
• Projects that are best suited have design completed, construction has not started, and the project can wait a year or more for the outcome of the Federal earmark process.
A staff team from the City Manager’s Office, and the departments of Public Works, Recreation and Parks, and Police reviewed the earmark guidelines and considered potential projects. The proposed projects reflect staff’s review and guidance received from the Offices of Senator Alsobrooks and Senator Van Hollen, which we believe would well position the City to receive an FY26 earmark.
Staff Recommended FY26 Rockville Earmarks:
Staff recommends the City apply for earmark funding allocated through EPA’s State and Tribal Assistance Grants (STAG) program. The STAG program provides funding for the construction and modification of municipal sewage or drinking water treatment plants, the replacement of sewer and water pipes, activities to facilitate compliance with primary national drinking water regulations, and planning and design work. This funding opportunity would empower the City to leverage federal resources and tackle crucial infrastructure challenges. Staff recommends the Mayor and Council approve the following projects, in the priority order listed below, for submittal through the Federal appropriations process. Should the City secure this vital funding it will enable Rockville to build a stronger water system for the Rockville community.
1. Disadvantaged Community (DAC) Orangeburg Lateral Replacement (80/20 cost share) - $2,520,000
Southeast Rockville faces threats from aging orangeburg laterals. This material, which was previously used until 1970, has less strength and a lower useful life than modern materials. These pipes are prone to frequent failures and risk raw sewer backups, sewage overflows, ground contamination, and environmental spills, diminishing the health and well-being of residents in this disadvantaged community. This STAG grant application seeks funding to proactively replace over 400 of these publicly maintained failing pipes, safeguarding public health, promoting equitable access to safe infrastructure, and preventing costly reactive repairs. This project aligns with STAG's priorities by directly addressing crucial infrastructure needs, prioritizing environmental justice, and ensuring a healthier future for all residents. This project maintains the authorized cost-share agreement of 80% federal funding and 20% local funding.
Project Cost: $3,150,000
Total Request: $2,520,000
Local Share: $630,000
Project schedule:
Construction Start: Spring 2026
Construction Completion: Fall 2027
2. Lead Service Line Inventory Investigation (80/20 funding split) - $500,000
The City’s initial lead service inventory, performed as required by the EPA, identified 8,256 unknown service lines, posing a potential threat to Rockville's water safety and compliance with the revised Lead and Copper Rule. To protect residents and meet regulation compliance, we seek EPA STAG funding to accelerate lead service line material verification. This project directly aligns with STAG's goals by ensuring safe drinking water, promoting environmental justice, and improving critical water infrastructure. By completing the inventory, the City gains valuable data to guide future infrastructure upgrades and ensure long-term system sustainability. Securing STAG funding signifies our commitment to collaborative solutions. This project will leverage federal resources and local expertise to deliver lasting benefits for our community. This project maintains the authorized cost-share agreement of 80% federal funding and 20% local funding.
Project Cost: $ 625,000
Total Request: $500,000
Local Share: $ 125,000
Project schedule:
Project Start: Spring 2023 (planning)
Project Completion: Fall 2027
Impact Statements
Equity - The recommended FY26 earmark projects support equity in that both projects are located in equity focus areas in the City of Rockville as defined by the Maryland Department of the Environment.
Environment - The recommended FY26 earmarks to improve water and sewer infrastructure are aligned with the Mayor and Council’s Climate Action Plan and environmental sustainability goals.
Economy - Upgraded water and sewer systems provide critical core services to residents and businesses. The upgrades could attract more residents and businesses to the area and potentially boost the local economy.
Next Steps
Following Mayor and Council approval, staff will submit the approved FY26 earmark requests by the Senate’s March 7 deadline. When the House submittal date is established, staff will submit the approved FY26 earmark requests in accordance with the deadline. Staff will inform the Mayor and Council on whether the Federal Delegation selects any of Rockville’s FY26 earmark projects to move forward.