As Maryland legislators weighed the state's response to the pandemic's economic damage in early 2021, Senate Democrats proposed a relief plan that would push total funding toward roughly $1.3 billion. The plan was designed as an amendment and expansion of Governor Larry Hogan's RELIEF Act, adding targeted help for historically Black colleges and universities (HBCUs), tenants, vulnerable families, and small businesses.

The Governor's RELIEF Act Baseline

Governor Hogan's initial RELIEF Act provided the starting point for Maryland's pandemic response. It included direct payments to tax filers who had received the state's Earned Income Tax Credit, business relief grants, unemployment tax relief, and other targeted measures. The administration framed the act as a bridge for families and small businesses whose income had been damaged by the pandemic.

Senate Democrats, led by Senate President Bill Ferguson, argued that the governor's proposal left gaps in several areas. Their Recovery Now plan, structured to move forward as amendments to the RELIEF Act, aimed to fill those gaps.

What the Senate Added

The combined package would cost roughly $1.3 billion. Among the Senate additions:

$44 million in additional unemployment assistance, targeting the specific cases where the state's unemployment system had failed to deliver benefits during 2020
$59 million for vulnerable people, including immigrants excluded from federal stimulus payments, who paid state and local taxes but could not access CARES Act checks
$28 million in housing assistance, with a focus on eviction prevention and rental assistance for tenants who had built up arrears during the pandemic
$125 million in business relief, with special attention to small and minority-owned businesses

Additional funding dedicated to Maryland HBCUs and Minority Serving Institutions was expected as part of the broader legislative response.

The HBCU Lawsuit Backdrop

The focus on HBCUs tied into a long-running federal lawsuit alleging that the Maryland government had shortchanged and undercut the four historically Black campuses in the state — Morgan State University, Bowie State University, Coppin State University, and the University of Maryland Eastern Shore — by duplicating their programs at predominantly white institutions and starving them of resources.

The lawsuit had gone through multiple rulings, settlement talks, and years of negotiation. The pandemic added urgency: HBCUs already operating on thinner budgets than flagship public universities were hit hard by the shift to remote learning, enrollment declines, and new expenses for health and safety.

Senate Democrats argued that pandemic relief should settle some of the debt the state owed to these institutions. Separate federal funding through the American Rescue Plan and the HEERF (Higher Education Emergency Relief Fund) flowed to HBCUs nationally, and Maryland layered state dollars on top. In addition, Maryland ultimately passed a $577 million settlement to the HBCU lawsuit, payable over 10 years, addressing decades of underfunding.

Federal Relief Alongside State Action

While Maryland debated its state package, federal COVID relief for schools and universities was moving separately. The Maryland congressional delegation announced more than $1.17 billion in federal COVID-19 relief flowing to schools and universities across the state, drawing from the CARES Act, the Consolidated Appropriations Act, and the American Rescue Plan.

Federal dollars supported K-12 schools, community colleges, four-year universities, and HBCUs. The mix reflected how many different federal programs were operating at once — the RELIEF Act at the state level, ESSER (Elementary and Secondary School Emergency Relief) funding for K-12, and HEERF dollars for higher education.

Why Housing Was in the Package

The Senate's $28 million housing assistance addition reflected the broader pressure on Maryland renters and homeowners during the pandemic. Emergency Rental Assistance Program (ERAP) dollars had begun flowing from the federal government, but state-level supplements were needed to close gaps — particularly for tenants who were too far behind for federal programs to fully cover.

The Maryland Homeowner Assistance Fund would eventually come online as a separate, larger effort, funded through the American Rescue Plan's $9.961 billion federal HAF allocation. That program ran into 2024 and helped thousands of Maryland homeowners catch up on mortgages, utilities, and taxes.

Passage and Compromise

The RELIEF Act passed the Maryland General Assembly in February 2021 with bipartisan support. Governor Hogan and legislative leaders celebrated the compromise. The final package did not include every Senate Democrat priority, but it incorporated enough expansions — including support for immigrant families and modest business relief — to secure broad backing.

Additional HBCU funding and supplemental pandemic measures were addressed through subsequent legislation and the HBCU settlement. The combined effect moved roughly $1 billion in state dollars through Maryland's economy during the pandemic's worst stretch.

The Longer-Term Legacy

Maryland's pandemic response demonstrated how state legislatures could build on federal relief rather than wait for it. By layering state dollars on top of federal programs, Maryland filled specific gaps — immigrant families, HBCU funding, eviction prevention — that the federal patchwork had missed.

For Maryland homeowners and renters, the legacy of the relief period included not only direct assistance but also the permanent expansion of some state programs. Eviction prevention services, tenant legal aid, and housing counseling capacity built up during the pandemic continued to operate, giving families more places to turn when housing trouble arose.

HBCUs and Maryland Senate's $1.3 Billion COVID Relief Plan