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Deadbeat feds: State lawmakers draw up bills to respond if White House withholds payments

By: Jack Bowman - March 6, 2025 1:32 am

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“Essentially, we’re preparing for the possibility of the federal government acting as a deadbeat debtor and needing to find ways to collect congressionally approved funding,” Moon said Wednesday.

Moon said that the first of his two bills, HB1545, would authorize Comptroller Brooke Lierman, in consultation with the BPW, to withhold funds owed to the federal government in an amount equivalent to funds being withheld from Maryland. The bill defines the federal government as being delinquent in the case of “noncompliance with court decisions” related to federal spending. A spokesperson for the comptroller said the office was still reviewing the bills and was not able to immediately comment.

The second bill, HB1546, would direct Attorney General Anthony Brown to work with the Central Collections Unit to put liens on federal property in Maryland until the state is able to “resolve the payment obligations from the federal government.”

The bill states that Maryland would reserve jurisdiction with respect to any land that the federal government leases or holds in the state if they are found delinquent in their payments.

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HOUSE BILL 1545
P1, P3 EMERGENCY BILL 5lr3639
By: Delegates Moon, J. Lewis, Atterbeary, Barnes, Clippinger, Korman,
Pena–Melnyk, and Wilson
Introduced and read first time: February 25, 2025
Assigned to: Rules and Executive Nominations

A BILL ENTITLED

AN ACT concerning1

Board of Public Works – Comptroller – Delinquent Federal Funds2

FOR the purpose of authorizing the Comptroller, in consultation with the Board of Public3

Works, to withhold up to a certain amount of State payments to the federal4
government under certain conditions; authorizing the Board of Public Works to5
determine the federal government to be delinquent in federal funds owed to the State6
under certain circumstances; and generally relating to delinquent federal funds.7

BY adding to8

Article – State Finance and Procurement9
Section 2–109 and 10–20810
Annotated Code of Maryland11
(2021 Replacement Volume and 2024 Supplement)12

BY repealing and reenacting, without amendments,13

Article – State Finance and Procurement14
Section 10–10115
Annotated Code of Maryland16
(2021 Replacement Volume and 2024 Supplement)17

BY adding to18

Article – State Government19
Section 4–11520
Annotated Code of Maryland21
(2021 Replacement Volume and 2024 Supplement)22

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND,23

That the Laws of Maryland read as follows:24

Article – State Finance and Procurement25

2–109.1

WHEN THE FEDERAL GOVERNMENT IS FOUND NOT IN COMPLIANCE WITH2
COURT DECISIONS UPHOLDING FEDERAL CONGRESSIONALLY APPROVED SPENDING3
AS PROVIDED IN § 10–208 OF THIS ARTICLE AND § 4–115 OF THE STATE4
GOVERNMENT ARTICLE, THE COMPTROLLER MAY WITHHOLD STATE PAYMENTS TO5
THE FEDERAL GOVERNMENT IN AN AMOUNT UP TO THE TOTAL OF DELINQUENT6
FEDERAL FUNDS.7

10–101.8

In this title, “Board” means the Board of Public Works.9

10–208.10

THE BOARD MAY DETERMINE THE FEDERAL GOVERNMENT TO BE11
DELINQUENT IN FEDERAL FUNDS OWED TO THE STATE IN THE EVENT OF FEDERAL12
NONCOMPLIANCE WITH COURT DECISIONS UPHOLDING CONGRESSIONALLY13
APPROVED SPENDING.14

Article – State Government15

4–115.16

FOR DELINQUENT FEDERAL FUNDS AS DETERMINED UNDER § 10–208 OF THE17
STATE FINANCE AND PROCUREMENT ARTICLE, THE COMPTROLLER, IN18
CONSULTATION WITH THE BOARD OF PUBLIC WORKS, MAY WITHHOLD DELINQUENT19
FEDERAL FUNDS IN ACCORDANCE WITH § 2–109 OF THE STATE FINANCE AND20
PROCUREMENT ARTICLE.21

SECTION 2. AND BE IT FURTHER ENACTED, That, if any provision of this Act or22
the application of any provision of this Act to any person or circumstance is held invalid for23
any reason in a court of competent jurisdiction, the invalidity does not affect other24
provisions or any other application of this Act that can be given effect without the invalid25
provision or application, and for this purpose the provisions of this Act are declared26
severable.27

SECTION 3. AND BE IT FURTHER ENACTED, That this Act is an emergency28
measure, is necessary for the immediate preservation of the public health or safety, has29
been passed by a yea and nay vote supported by three–fifths of all the members elected to30
each of the two Houses of the General Assembly, and shall take effect from the date it is31
enacted.