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Upcoming MCCC Government Relations Committee Meetings
Join the MCCC Government Relations Committee for its next virtual meeting on September 3 at 8:30 a.m. as we continue our series featuring candidates who recently won their primary elections. Our guest will be Scott Goldberg, the Democratic nominee for an At-Large seat on the Montgomery County Council. To register, click here.
Following that, join the MCCC Government Relations Committee for its virtual meeting on October 15 at 8:30 a.m. The guest for this meeting will be Jud Ashman, who won the Democratic primary election for the District 3 seat on the Montgomery County Council. To register, click here.
All Chamber members are invited to attend and learn more about the community’s next generation of elected leaders while engaging in the Chamber’s advocacy efforts. The Government Relations Committee meets weekly during the Maryland General Assembly legislative session and monthly during the interim. These meetings provide members with valuable opportunities to learn about, discuss, and engage on a wide range of policy issues affecting the regional business community.
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MCCC Government Relations Committee Meets with District 1 County Council Candidates
On August 6, MCCC’s Government Relations Committee hosted the candidates for the Montgomery County Council District 1 seat: Julie Yang, the Democratic nominee, and Reardon Sullivan, the Republican nominee. The two candidates will face each other in the General Election on November 3, 2026. The meeting was part of the Government Relations Committee’s ongoing candidate engagement series, which provides Chamber members with an opportunity to hear directly from candidates and learn about their positions on issues affecting the business community and Montgomery County’s future.
Julie Yang emphasized that growing county revenue is a top priority and will require both short- and long-term strategies, including strengthening the business climate, investing in economic development, attracting employers, and making government more transparent, responsive, and efficient through reforms such as faster, more predictable permitting processes. She also highlighted concerns about housing shortages and population loss, advocating for transit-oriented development and a review of policies such as rent control, while stressing that economic growth, housing availability, and a business-friendly environment are all critical to the county’s future success.
Reardon Sullivan argued that Montgomery County has a spending problem rather than a revenue problem and supports a ballot measure that would limit budget growth to the rate of inflation unless unanimously approved by the County Council. He emphasized the need to expand the county’s revenue base by creating a more business-friendly environment, reducing regulatory barriers, and making the county more competitive for employers and developers, while opposing rent control as an ineffective long-term housing solution.
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Chamber-Supported Tax Increment Financing Approved for Viva White Oak Project
The Montgomery County Chamber of Commerce has supported the creation of a Tax Increment Financing (TIF) Development District for the Viva White Oak project since its inception. The TIF district authorizes Montgomery County to issue up to $420 million in bonds to fund infrastructure improvements, with the bonds repaid through the increased tax revenues generated by the development. While TIF financing has been used successfully in jurisdictions across Maryland for decades, Viva White Oak represents the first use of this economic development tool in Montgomery County.
The 280-acre Viva White Oak development, located near the U.S. Food and Drug Administration headquarters and Adventist HealthCare White Oak Medical Center, will serve as a catalyst for economic growth, job creation, and long-term revitalization in East County. The Chamber applauds the County Council for its leadership in advancing this important financing mechanism and looks forward to Chamber member MCB Real Estate breaking ground on the mixed-use development later this year.
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County Council Approves 18-Month Data Center Moratorium, Continues Work on Future Regulatory Framework
The Montgomery County Council unanimously approved an 18-month moratorium on new data center development, replacing the six-month pause implemented by executive order. The measure prohibits the Department of Permitting Services from accepting, reviewing, or issuing permits for new data center projects during the moratorium period. Council members said the additional time will allow the County to develop a comprehensive regulatory framework addressing issues such as appropriate locations, facility size and scale, potential tax policies, environmental impacts, energy consumption, and infrastructure needs.
The Chamber has consistently opposed data center moratoriums while supporting the County Council’s efforts to establish clear and thoughtful regulations for future data center development. Although data centers generally create relatively few direct jobs, they can generate substantial tax revenue and play an important role in supporting the region’s innovation economy and broader economic growth strategy.
Montgomery County currently hosts only a limited number of smaller data centers. However, the Council’s action effectively pauses consideration of a proposed large-scale data center project in the Dickerson industrial area. The County is not alone in taking this approach, as several neighboring jurisdictions have adopted similar temporary restrictions while evaluating how best to regulate the industry. In addition, a pending state study is expected to provide further guidance on data center development and its impacts. The Chamber will continue working with policymakers and stakeholders to support a balanced approach that addresses legitimate community concerns while preserving opportunities for economic development and future investment.
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County Council Gives Final Approval to Chamber-Supported Job Creation Project Measure
The County Council approved ZTA 26-05, Job Creation Project Zoning Text Amendment, a measure supported by the Chamber. Sponsored by Council President Natali Fani-González and co-sponsored by nearly all councilmembers, the ZTA is designed to attract employers in strategic industries, stimulate economic development, encourage private-sector investment, and create new jobs in Montgomery County.
Specifically, the ZTA establishes an expedited review and approval process for projects that generate at least 200 net new jobs and operate within strategic industries identified in the County’s Economic Development Strategic Plan. The Chamber supported the measure for its potential to provide greater predictability and faster regulatory timelines for major economic development projects, helping make Montgomery County more competitive for business investment.
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Ballot Measure to Change County Budget Process Falls Short
A proposed charter amendment known as “Stop the Spend” failed to collect the 10,000 signatures required to qualify for the November ballot in Montgomery County. If approved by voters, the measure would have required a unanimous vote of the County Council to increase the annual county budget by more than the rate of inflation.
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County Council Re-Appoints James Hedrick to Montgomery Planning Board
The County Council voted to re-appoint James Hedrick (D) to a four-year term on the five-member Montgomery Planning Board, which is part of the Maryland-National Capital Park and Planning Commission. The Chamber had formally supported Mr. Hedrick’s appointment to his first term in 2023. Mr. Hedrick was first appointed to the Planning Board during a tumultuous time in 2023 after the previous Board resigned following a controversy over the former Planning Director’s dismissal.
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Maryland General Assembly Holds Special Session on Congressional Redistricting
The Maryland General Assembly convened a special session on August 3-4 and passed House Bill 2100, a proposed constitutional amendment that will appear on the November general election ballot. If approved by voters, the amendment would clarify that constitutional redistricting standards governing legislative districts do not apply to congressional districts and that the Maryland Constitution does not require the same criteria for drawing congressional boundaries. While the measure does not result in congressional redistricting for the 2026 election cycle, it would address legal concerns that could arise if lawmakers pursue congressional redistricting in the future.
During the 2026 regular session, lawmakers and Governor Wes Moore were unable to reach agreement on a proposal to redraw congressional districts for this year’s November election. The debate was influenced by mid-cycle redistricting efforts in other states and a U.S. Supreme Court decision that significantly altered the application of the Voting Rights Act. Maryland Republican lawmakers have indicated they will pursue legal challenges to House Bill 2100.
In addition, the special session included votes to override two of Governor Moore’s five vetoes: one bill shielding certain divorce records from public disclosure and another requiring freight trains to operate with a minimum two-person crew.
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State Issues Guidance to Help Businesses Navigate FAMLI
As a reminder, all employers with at least one employee in Maryland must register with the Family and Medical Leave Insurance (FAMLI) program. The State of Maryland has issued guidance to help employers understand who must register, what information is required, how to invite team members to join an employer profile, and how to grant Third-Party Agents (TPAs) access to manage an account. The guidance website can be accessed here.
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Comptroller Launches Quarterly Economic and Fiscal Snapshot
Comptroller Brooke Lierman has launched the Maryland Economic and Fiscal Quarterly Snapshot (MEFQS), a new webpage featuring data dashboards that provide insights into Maryland’s economy, revenue, and spending. The first release, available here, includes data for Maryland through the first quarter of 2026 for most indicators. Key findings include:
- Total employment declined significantly in 2025 – in large part due to federal job cuts – followed by modest employment gains in Q1 of 2026. Recent gains helped offset 2025 losses, but employment in Q1 2026 is well below Q1 2025 levels.
- Employment in most industries was stagnant between Q1 2025 and Q1 2026, apart from declines in the federal government sector and the professional, scientific, and technical service industry, and growth in the health care and social assistance industry.
- The state unemployment rate increased, and the labor force participation rate decreased from Q1 2025 to Q1 2026.
- Home prices were relatively stable from 2025 to 2026. The number of housing units permitted declined significantly year over year.
- GDP growth and revenue growth have been stable, driven primarily by productivity gains and personal income tax growth.
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Tony Bridges Named Maryland Transit Administration Administrator
Governor Wes Moore has appointed Tony Bridges as the next administrator of the Maryland Transit Administration (MTA), effective September 1. Bridges succeeds Holly Arnold, who recently stepped down from the position. He previously served as MTA Chief of Staff and represented Baltimore City as a member of the Maryland House of Delegates.
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SBA Updated Size Standards Regulation Published
The long-awaited size standard updates, determining size by NAICS code for purposes of federal contracting, can be found in the Federal Register (Size standards / Methodology). Both offer 30-day comment periods. Businesses are encouraged to comment.
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Continuing Resolution for FY27 Passes Senate
Both the House and Senate passed a continuing resolution to fund the government until December, an acknowledgment that funding through individual appropriations bills will not likely move until the end of the calendar year. The House version expires on December 4 and the Senate version on December 11. When Congress returns to Washington in September, we expect a unified version to be accepted and ready for the President’s signature. In addition, Congress is eyeing a third budget bill that supplements funding for the Department of War (DoW). While the House passed its version, the Senate has been less enthusiastic about the effort.
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DoW Issues Wide-Reaching Directive on IT Category Management
Effective July 29, CIO Kirsten Davies issued the directive echoing themes familiar to IT contractors. The new guidance follows “more of the same” Trump administration tech-buying initiatives, such as GSA’s OneGov initiative for civilian agencies and preferences for enterprise-wide buying.
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DoW Announces Altered CMMC Phase II Requirements
In a release, DoW suspended CMMC Phase II requirements and initiated a 60-day study of the future of the program led by a CMMC Reform Task Force that the Department CIO will establish. Responses to the Department’s RFI were due August 15, 2026, by 12:00 PM ET.
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Chief Acquisition Officers Council Seeks Award Nominations
Highlight an outstanding contracting officer or team from the past year through a nomination for the 2026 Acquisition and Program Management Excellence Awards, due on August 31, 2026.
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OMB Adjusts Cost Accounting Standards
The standards, which regulate how covered costs are measured, will now apply to contracts of $35 million and above instead of $2 million, effective August 7, 2026. Find more information here.
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Congress Passes Legislation to Increase OTA Spending Transparency
H.R. 2069, the Stop Secret Spending Act of 2025 (Rep. Barry Moore (R-AL)), requires data on OTA spending to be published to USAspending.gov within three years of enactment, along with annual reports on federal spending that isn’t included in USAspending.gov within one year of enactment.
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