Governor Larry Hogan announced on January 11, 2021, that his administration’s primary priority for the Maryland General Assembly 2021 legislative session would be providing economic aid and relief to Marylanders suffering from the effects of COVID-19.
The administration is proposing a stimulus package titled the Recovery for the Economy, Livelihoods, Industries, Entrepreneurs, and Families Act (Relief Act of 2021). The Governor is requesting that the Senate President and Speaker of the House introduce the measure as “emergency legislation” and that it be prioritized for passage to bring immediate relief to struggling Marylanders. The 2021 legislative session starts January 13, 2021.
The proposed stimulus package would provide more than $1 billion in immediate, targeted financial relief and tax cuts for Maryland working families, small businesses and those who have lost their jobs and are suffering financial hardship due to the COVID-19 pandemic as follows:
- $267 million would be distributed directly to families in need. Families who filed for the earned income tax credit will receive an extra $750, and individuals will receive $450. No application would be required, and checks would be distributed immediately upon the bill’s passage into law.
- $180 million in tax relief would be allocated to Marylanders who lost their jobs by repealing all state and local income tax on unemployment benefits.
- $300 million in tax relief would be provided to more than 55,000 Maryland restaurants and small businesses by allowing them to keep $12,000 in sales tax for the next four months.
- Governor Hogan stated that he would seek to codify an executive order signed last month that prevents sudden and substantial increases in unemployment taxes on small businesses for 2021, saving an addition $218 million.
- Governor is also extending protections against tax increases triggered by receipt of state loan or grant funds, saving small businesses an additional $40 million.
The Governor also spoke on the passage of the $900 billion Congressional pandemic relief package that has recently been signed into law. Maryland will receive $15 billion in federal aid. $10 billion of those dollars will come from paycheck protections provided by the CARES act, while $4 billion will be provided through individual assistance. Additional federal funding for Maryland will be allocated as follows:
- $400 million in rental assistance,
- $1.2 billion for education,
- $130 million for childcare, and
- $250 million for transportation.
Maryland was the first state to accept claims for extended federal programs, and 8.7 billion in federal funding had previously been paid out to 709,000 Marylanders.
For more information on Governor Hogan’s announcement, go to governor.maryland.gov/category/press-releases
- GBC 2021 Legislative Priorities
- Gov. Larry Hogan’s Dec. 17 COVID-19 Press Conference
- Statement of Donald C. Fry, President & CEO, Greater Baltimore Committee, on New State Measures to Assist Small Business Affected by Covid-19 Pandemic
- Mayor Brandon Scott announces tighter restrictions to fight COVID-19 pandemic in Baltimore
- Congressional Letter of Support from the Business Community: COVD-19 Federal Relief
- Gov. Larry Hogan’s Dec. 10 COVID-19 Press Conference
- Gov. Larry Hogan’s Dec. 8 COVID-19 Press Conference
- Gov. Larry Hogan’s Dec. 1 COVID-19 Press Conference
- Governor Larry Hogan’s Nov. 23 COVID-19 Press Conference