Maryland Military Department Faces Budget Cut, Seeks Continued State Match to Protect Federal Funding

Department of Legislative Services analyst Yashoda Rai told the subcommittee the Maryland Military Department's fiscal 2027 allowance decreases by about $10.2 million after accounting for proposed fiscal-26 deficiency appropriations. Rai said the department's fiscal-27 allowance was presented at roughly $35.5 million with approximately 55% appropriated for personnel expenses.

Rai and Major General Janine Birkhead, the state's Adjutant General, told senators the proposed decrease is driven in part by program closures and associated personnel abolitions. The Free State Challenge Academy (FCA) was shut down in September 2025 following plumbing and infrastructure failures; 14 enrolled cadets were transferred to other challenge academies and 38 returned to their home schools. The fiscal 2027 allowance abolishes 47 FCA positions, Rai said; three FCA positions remain budgeted for FY27 pending further planning.

Birkhead stressed the importance of state operations-and-maintenance funding that unlocks federal dollars. "One state dollar leverages three federal dollars," she said, framing the state match as essential to preserve federal funding streams for facility repairs and readiness. Birkhead described army readiness centers as aging and noted the department averages about 30% on facility condition/functionality metrics compared with a federal target of 95%.

Committee members pressed the department on timelines and personnel for reopening FCA. Birkhead and staff said renovations are underway and they were working with the Department of General Services and the National Guard Bureau; they gave a target of June 2026 for facility completion but acknowledged uncertainty. Senators also asked about the STAR program and a separate STAR Base initiative: Rai said legislation (SB 142 / HB 232) expands tuition-assistance eligibility for Maryland National Guard members, while STAR Base is a federally funded STEAM/STEM outreach program for fifth graders being piloted in Maryland.

Lawmakers asked about runway and grant funding for Martin State Air National Guard base projects; department officials said existing federal runway funds remain and the department was pursuing additional federal grants (noting some grant opportunities were missed amid the divestment announcement), with an estimated $35 million needed to finish remaining work.

DLS requested clarity on FCA renovation finances and the status of appropriated funds; the department committed to follow up with detailed accounting and clarification of remaining budgeted positions. The committee did not record a formal vote on the department's allowance during this session.