Annapolis, MD – Yesterday, Maryland lawmakers voted to approve the FY27 state budget. The final language includes a $73 million investment to create a rebate program for energy efficient heat pumps to help families reduce energy, save on utility bills, and improve air quality in their homes.
In fiscal year 2027, the draft budget proposed to divert $400 million in energy efficiency and clean energy funding from the SEIF for the general fund and other uses. The budget’s heat pump proposal stems directly from a Sierra Club and Center for Progressive Reform report which called for heat pump trial programs to lower the upfront cost of heat pumps, while lowering bills for low income families.
This victory is also a result of advocates’ campaign to protect energy efficiency and clean energy investments in the Strategic Energy Investment Fund (SEIF). In February 2026, advocates held a rally and attended budget hearings to testify in support of energy efficiency and clean energy funding.
After hundreds of calls and messages sent, the final budget language will include a $73 million dollar allocation for heat pumps. To become law the Governor must sign off on the final budget. Advocates will continue to advocate for energy efficiency investments, like funding for induction stoves and more.
In response to yesterday’s final budget vote, advocates have released the following statements :
“This $73 million investment will help Maryland families lower their energy bills, improve indoor air quality, and reduce pollution,” said Josh Tulkin, Director of the Sierra Club Maryland Chapter. “We applaud the Maryland leadership for this smart investment and look forward to seeing this become law.”
“Clean indoor air and affordable energy aren't luxuries — they're the baseline every working class Marylander deserves. This $73 million is a meaningful step toward that future. But we're not stopping here: next year, we'll be pushing for investments in induction technology to accelerate the shift away from polluting appliances once and for all,” said Tanushree Isaacman, of the Maryland Just Power Alliance.
“Caring Marylanders are working hard to electrify our homes and shift to cleaner power. We’re encouraged to have this support through funding for heat pumps that lower energy costs while helping us shift away from gas-burning that is polluting the air our families breathe,” said Maddie Smith of Interfaith Power & Light (DC.MD.NoVa). “We’re grateful to see dollars from Maryland’s Strategic Energy Investment Fund (SEIF) used as intended, and to the benefit of us all.”
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