Locally Operated Transit Systems - Mandatory Funding - Inflation Adjustment (Local Transit Sustainability Act)

HB 432 (Local Transit Sustainability Act) requires Maryland to automatically adjust annual funding for statewide transit systems based on inflation. Starting in fiscal year 2026, the base appropriation is set at $80,533,314, with future increases tied to the Consumer Price Index (CPI) growth - capped at 5% annually. If CPI growth is zero or negative, funding remains unchanged from the prior year. This directly affects all local transit systems receiving state grants under Maryland’s Locally Operated Transit System Grant Program. The bill amends existing law to implement this mandatory inflation-based funding adjustment mechanism.