HB 706 Maryland House of Delegates · 2026 Regular Session

State Finance - Delinquent Federal Funds (Federal Obligations Enforcement Act)

HB 706 (Federal Obligations Enforcement Act) authorizes Maryland's Central Collection Unit to collect delinquent federal funds owed to the state, directly affecting the state government and the federal government. Key provisions allow the Unit to place liens on federal property within Maryland, withhold state payments to the federal government, and refer delinquent funds for enforcement. The bill establishes that the Board of Public Works can determine federal delinquency when the government fails to comply with court decisions on spending. It modifies existing Maryland law to reserve state jurisdiction over federal land and creates specific procedures for collecting funds. The law focuses on concrete enforcement mechanisms for unpaid federal obligations to the state.

Issues: ✓ Budget & Taxes

Bill status passed 3 of 5 stages cleared

Introduction

Feb 2026

Committee Review

Apr 2026

House of Delegates Passage

Apr 2026

Senate Passage

Governor

Introduced Feb 2, 2026 Last action Apr 10, 2026

Maddy AI version diff · 1 comparison

What changed between versions

First - State Finance - Delinquent Federal Funds (Federal Obligations Enforcement Act) → Third - State Finance - Delinquent Federal Funds (Federal Obligations Enforcement Act) · 5 edits

MODERATE

The bill was amended to remove a specific provision that allowed the State to reserve jurisdiction over federal land when the government failed to comply with court decisions regarding congressionally approved spending. Additionally, the bill now repeals and reenacts several existing sections without amendments, whereas the previous version included amendments to those sections. These changes streamline the bill by removing a controversial enforcement mechanism and clarifying that existing laws remain largely unchanged.

Scope change

The bill's scope was narrowed by removing the specific authority to seize federal land in cases of non-compliance with spending court orders.

ENFORCEMENT

Deleted a clause allowing the State to reserve jurisdiction over federal land if the federal government is not in compliance with court decisions upholding congressionally approved spending.

REQUIREMENT

Changed the action for several existing state finance and procurement sections from 'repealing and reenacting, with amendments' to 'repealing and reenacting, without amendments'.

TECHNICAL

Updated the list of specific sections being repealed and reenacting to include Sections 3-101, 3-206(a), (b), and (d), and 10-101, replacing the previous list.

Switched the cited Annotated Code of Maryland replacement volume from the 2021 volume back to the 2019 volume for consistency.

Added a committee report indicating the bill was favorably reported and adopted by the House.

Floor votes · House of Delegates Mar 24, 2026

How they voted

97–37

Passed · 8 other

Total votes 142

Mar 24, 2026

D Democratic103

96 Yea 7

93% Yea

R Republican39

1 Yea 37 Nay 1

94% Nay

Vote distribution

All Yea All Nay Mixed No data

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Amendments

Apr 10, 2026

Committee

Referred Rules

upper

Apr 9, 2026

Lower · Passed

Third Reading Passed

lower

Apr 9, 2026

Introduced

Floor Amendment {

lower

Apr 8, 2026

Lower · Passed

Motion Special Order until 04/09 (Delegate Pippy) Adopted

lower

Apr 8, 2026

Lower · Passed

Favorable Adopted

lower

Apr 8, 2026

Lower · Passed

Favorable Report by Appropriations

lower

Mar 24, 2026

House Of Delegates · Passed

House of Delegates Vote: pass (97-37-8)

house of delegates

Feb 2, 2026

Committee

First Reading Appropriations

lower

7 primary · 0 co-sponsors