Transportation advocates urge Maryland to repurpose flexible FHWA dollars for transit and electrification

Eric Norton, director of policy and programs at the Central Maryland Transportation Alliance, told the subcommittee that federal formula highway dollars are a major and flexible source of transportation funding for Maryland and can be used for more than highways.

Norton noted the state spends roughly $5 billion a year on transportation and that federal funds are the second largest source for the Transportation Trust Fund. He argued that despite the misleading name, FHWA formula funds have not been strictly limited to highway projects since Congress declared the interstate system complete in 1991 and that Maryland historically has treated many of these funds as highway‑only.

“Typically MDOT transfers just 9% of eligible highway funds to transit,” Norton said, adding that states can transfer far more — up to about 50% — to transit and other multimodal priorities. He said a shift in priorities could help electrify bus fleets, replace aging rail vehicles, and expand walking and biking infrastructure while better aligning spending with greenhouse‑gas reduction goals.

Norton recommended that lawmakers probe MDOT’s spending priorities and consider budget and policy moves to reprioritize federal and state transportation spending toward cleaner, safer, more equitable travel options. Senators said they would include these concerns in ongoing budget deliberations and requested written materials and follow‑up on specific proposals.