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SB 1005

Federally Qualified Health Centers Grant Program - Acquisition of Land

2025 Regular Session Introduced by Joanne Benson

Allows state capital grants under the FQHC program to be used for land acquisition for new or expanded clinics, speeding site control and access for underserved communities.

Approved by the Governor - Chapter 641
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Bill Summary · SB 1005

Summary — SB 1005 (2025): Federally Qualified Health Centers Grant Program — Acquisition of Land

Status: Approved by the Governor — Chapter 641 (May 20, 2025)
Introduced: Jan 29, 2025 (Sen. Benson) — Effective date: October 1, 2025
Statute amended: Health — General, §24‑1302
Companion: HB 43

Purpose

SB 1005 expands the existing Federally Qualified Health Centers (FQHC) Grant Program to allow State capital grants to be used to acquire land for the construction or operation of FQHCs. The change is intended to help secure sites for new or expanded community health centers serving underserved populations.

Key provisions

  • Adds a new authorized purpose to the FQHC Grant Program: the acquisition of land for the construction or use of a federally qualified health center (new §24‑1302(b)(6)).
  • Leaves intact existing eligible grant purposes, which include conversion or acquisition of buildings, renovation, capital equipment, planning, design, and construction.
  • Maintains the program’s existing administrative pathway: the Secretary of Health recommends projects and the Board of Public Works (BPW) may make grants to counties, municipal corporations, and nonprofit organizations that sponsor FQHC projects.
  • Continues existing funding/eligibility mechanics described in current law (as reflected in the fiscal note): State grants may cover up to 75% of eligible project costs after federal grants (up to 90% for projects eligible for poverty‑area funding); sponsors must provide matching funds.

Who is affected

  • Primary recipients: counties, municipal corporations, and nonprofit organizations that sponsor or operate FQHC projects in Maryland.
  • Indirect beneficiaries: patients and communities (especially underserved or high‑poverty areas) who would gain access to new or expanded FQHC services.
  • State agencies: Maryland Department of Health (MDH) and Board of Public Works for administration and approval; both can absorb any administrative adjustments within existing resources according to the fiscal note.

Fiscal and procedural impact

  • Fiscal effect: The fiscal note indicates the bill mostly broadens allowable uses of existing program funds rather than creating a new appropriation. MDH and BPW can implement the change with current budgeted resources. Local governments that apply for and receive grants may see increased revenues and expenditures.
  • Procedure/timeline: Projects continue to require MDH review and the Secretary’s recommendation to BPW. The Act takes effect October 1, 2025.

Context and expected effect

By permitting land acquisition as an eligible grant expense, the bill helps project sponsors secure sites (site control) earlier in the development pipeline, which can accelerate construction or expansion of FQHCs in areas with limited clinical capacity. The statutory change is administrative/technical rather than a direct appropriation; additional grant awards would depend on future budget actions and BPW approvals.

Compiled from official sources — confirm details with the bill’s official record.

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