Governor Hogan Announces Release of Maryland’s American Rescue Plan, State and Local Fiscal Recovery Funds Report

August 2, 2022

Governor Larry Hogan today announced that the State of Maryland has submitted its 2022 American Rescue Plan, State and Local Fiscal Recovery Funds (SLFRF) Annual Performance Report to the U.S. Department of the Treasury. The report—which details expenditures from March 3, 2021 through June 30, 2022 and includes planned allocations for Fiscal Year 2023—describes the use of the funds allocated to the state through the American Rescue Plan (ARP). Read the report.

“The COVID-19 pandemic resulted in the worst economic collapse since the Great Recession and caused hardship for people all across our state and nation,” said Governor Hogan. “By utilizing these resources to supplement our aggressive economic relief measures, our state has led one of the strongest health and economic recoveries in America.”

Maryland implemented a series of economic relief measures throughout the pandemic, including the RELIEF Act, which provided critical tax relief and economic stimulus for struggling Maryland families, small businesses, and those who lost their jobs due to the global pandemic. The state also established relief initiatives to help workers, renters, restaurants, farmers, small businesses, nonprofit organizations, entertainment venues, and local tourism agencies.

In March 2021, Governor Hogan, Senate President Bill Ferguson, and House Speaker Adrienne A. Jones announced a bipartisan plan to allocate the resources the state received through the American Rescue Plan. This plan enabled the state to effectively and efficiently allocate funds to meet urgent needs, jumpstart the recovery, and help underserved communities. The report includes summaries of spending for each project, as well as details about 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%. As of June 2022, the state’s unemployment rate (4.0%) was two tenths of a percent lower than the pre-pandemic rate. As of May 2022, Maryland’s labor force participation was 97.5% of February 2020 levels.

Health Equity Resources: Funds were utilized 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 Maryland Health Equity Resource Act, to provide significant new grant funding to address health disparities, improve health outcomes, expand access to primary care and prevention services, and help reduce health care costs.
Universal Broadband: The state’s transformative Connect Maryland initiative to bring universal broadband to Marylanders utilizes SLFRF and federal Coronavirus Capital Projects Funds. ‘Last mile’ broadband will improve access to online education and telemedicine.

Assistance for Marylanders In Need: The number of individuals participating in the Temporary Assistance for Needy Families (TANF) program increased from approximately 25,000 pre-pandemic to a high of over 57,000 during the state of emergency. The State of Maryland utilized American Rescue Plan funds to meet the caseload demand, including an increased monthly amount of $100 for Temporary Cash Assistance (TCA) and Temporary Disability Assistance (TDAP). In addition, funds were utilized to help assist customers with electric and gas bills, helping to lower statewide arrearages to pre-pandemic levels for most utilities.

Unemployment Benefits: Pandemic-related unemployment claims depleted the state’s Unemployment Insurance (UI) Trust Fund. As of September 27, 2021, Maryland paid off its federal UI loan balance with SLFRF as allowed under the U.S. Treasury’s Final Rule and Senate Bill SB 811. This action averted the federal unemployment insurance tax credit reduction that was set to trigger 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.