Maryland Lawmakers Struggle to Pass Nonprofit Oversight Bills

Efforts to tighten rules on nonprofits receiving state funding face resistance in Annapolis.

Published on Mar. 5, 2026

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Attempts by Maryland lawmakers to increase oversight and accountability for the state's nonprofit organizations have repeatedly stalled in the legislature, even as critics argue the sector faces far less scrutiny than for-profit businesses. A recent bill introduced by Del. Kathy Szeliga that would prohibit nonprofits from receiving state funding if they are not in compliance with state laws quickly faced resistance and has not advanced since its initial hearing.

Why it matters

Nonprofit organizations play a significant role in Maryland's economy and social services, but some argue the lack of robust oversight leaves the sector vulnerable to mismanagement and potential abuse of taxpayer funds. The resistance to tougher nonprofit regulations highlights the political challenges of reining in an influential industry with deep connections to state lawmakers.

The details

Del. Kathy Szeliga introduced a bill five weeks ago that would prohibit nonprofits from receiving state funding if they have not complied with state laws, describing it as a straightforward measure. However, the bill faced opposition during an eight-minute hearing, with one opponent warning it would require hiring more accountants and lawyers. Another speaker pointed to existing oversight, claiming there is an office that independently reviews every agency. The bill has not advanced since the hearing, and Del. Ryan Nawrocki said he could not recall the last time a significant bill passed to strengthen nonprofit oversight in Maryland.

  • Del. Kathy Szeliga introduced the bill five weeks ago.
  • The bill received an eight-minute hearing at the State House.
  • Five weeks after the hearing, the House Government Operations, Labor and Elections Committee had yet to vote on the bill.

The players

Kathy Szeliga

A Maryland state delegate who introduced a bill to prohibit nonprofits from receiving state funding if they have not complied with state laws.

Ryan Nawrocki

A Maryland state delegate who said he could not recall the last time a significant bill passed to put more teeth on nonprofits.

David Williams

A taxpayer advocate who said the lack of movement on Szeliga's bill reflects broader resistance to increased oversight, and that lawmakers' connections to nonprofits can create conflicts of interest.

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What they’re saying

“I'm presenting today a very simple and easy bill.”

— Kathy Szeliga, Maryland State Delegate (wcbm.com)

“It actually means you'd have to hire more accountants, more lawyers.”

— Unnamed opponent (wcbm.com)

“We actually do have an office that independently reviews every agency, every sub-department, isn't that so?”

— Unnamed speaker (wcbm.com)

“Probably a half is employed by a nonprofit organization, so its a fox guarding the hens house.”

— Ryan Nawrocki, Maryland State Delegate (wcbm.com)

“If you're on the board of a non profit, you are compromised because you're voting in the interest of the nonprofit and not for citizens.”

— David Williams, Taxpayer Advocate (wcbm.com)

What’s next

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