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

SB 20 requires Maryland to automatically adjust annual funding for local transit systems based on inflation. Starting in fiscal year 2027, the base $80.5 million grant will increase each year by the lesser of the inflation rate (using the Consumer Price Index) or 5%, but will not decrease if inflation is flat or negative. This applies directly to all locally operated transit providers across Maryland, including city bus systems and regional services. The bill ensures funding for these essential public transportation services grows to keep pace with rising operational costs.