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SB 666

Maryland Community Action Agencies - Funding

2025 Regular Session Introduced by Guy Guzzone

Requires annual state operating grants to Maryland CAAs via DHCD; escalating appropriations from $500k (FY27–28) to $7M (FY32), effective July 1, 2025, sunset June 30, 2032.

Approved by the Governor - Chapter 288
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Bill Summary · SB 666

Summary — SB 666 (Chapter 288, 2025): Maryland Community Action Agencies — Funding

Status: Approved by the Governor (Chapter 288). Effective date: July 1, 2025. Sunset/expiration: the Act remains in effect for 7 years and terminates June 30, 2032.

Main purpose

Require the Governor to include a specified appropriation in the annual State budget to the Department of Housing and Community Development (DHCD) to provide operating grants to Maryland Community Action Agencies (CAAs). The intent is to provide recurring state operating support to CAAs that supplement local anti‑poverty efforts.

Key provisions

  • Adds §8‑110 to the Housing and Community Development Article directing the Governor to include an appropriation to DHCD for use solely as operating grants to eligible CAAs.
  • The enacted text lists amounts to be distributed in specified fiscal years (FY):
    • $500,000 for each of FY 2027 and FY 2028;
    • $1,000,000 for FY 2029;
    • $3,000,000 for FY 2030;
    • $5,000,000 for FY 2031;
    • $7,000,000 for FY 2032.
  • The statute includes the statutory definition of “community action agency” (relying on existing §8‑101(b)): governmental units of a political subdivision, joint governmental units, agencies designated under the Community Services Block Grant (CSBG) program, or private nonprofit organizations meeting designation requirements.
  • The Act remains in force through June 30, 2032 (7‑year duration).

Who is affected

  • Department of Housing and Community Development — required to administer and distribute the operating grants; the Department indicated it can administer the grants with existing staff.
  • Community Action Agencies (CAAs) across Maryland — local government units and nonprofit CAAs that meet statutory eligibility. CAAs may receive new state operating grant funding to support anti‑poverty programs (employment, education, housing, emergency services, etc.).
  • State general fund — subject to mandated appropriations specified in the law.

Fiscal and administrative impact

  • Department of Legislative Services (fiscal analysis prepared during consideration) reported a mandated appropriation of $250,000 annually for FY 2027–FY 2030 in an earlier version of the bill; that analysis concluded general fund expenditures would increase by $250,000 annually in FY 2027–2030 and that DHCD can distribute grants with current resources.
  • The enacted chapter text, however, contains a schedule of larger, escalating distributions for FY 2027–FY 2032 (see amounts above). This creates an inconsistency between the fiscal note for the bill as reported and the final statutory language. The actual fiscal effect to the general fund will depend on how the FY appropriation language in the annual budget implements the statutory directions and the amounts ultimately included by the Governor and approved by the General Assembly.

Timing / procedural notes

  • The Act takes effect July 1, 2025.
  • It requires the Governor to include the appropriation(s) in each annual budget bill for the years covered.
  • The statute is time‑limited and automatically abrogates on June 30, 2032.

If you want, I can:
- Extract the exact statutory text of §8‑110 as enacted, or
- Prepare a side‑by‑side comparison of the bill versions (draft, fiscal note, final chapter) showing the discrepancy in appropriation amounts and the likely fiscal interpretations.

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

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