FOR IMMEDIATE RELEASE
Elrich and Montgomery County Council Misleading Residents on “Green” Energy Tax to Fuel Runaway Spending
Derwood, MD (April 10, 2026) — Montgomery County Executive Marc Elrich and members of the Montgomery County Council, including Dawn Luedtke, are facing growing criticism for what opponents describe as a deliberate bait-and-switch on the County’s fuel-energy tax — using environmental messaging to justify what has become a major, unrestricted revenue stream for uncontrolled government spending.
For years, County leaders promoted the fuel-energy tax as part of their climate agenda, implying that the funds would support clean energy and environmental initiatives. But the County’s own budget documents show that the overwhelming majority of this revenue was routed into the general fund, not dedicated climate programs.
“This wasn’t transparency — it was political branding,” said GOP Candidate for County Council, District 7, Harold Maldonado. “Residents were told they were paying for climate action. In reality, they were funding a growing government with no meaningful restrictions on how the money was spent.”
The tax has generated hundreds of millions of dollars annually, adding up to nearly $1 billion over the past five years alone. Yet until 2022, none of that funding was legally required to go toward environmental initiatives. Only after years of revenue collection did County leaders pass legislation requiring that just 10% of fuel-energy tax proceeds be directed to the Green Bank — leaving more than 90% still available for general government spending.
An analysis of the tax revenue collected since 2013, highlights the following:
- Montgomery County has collected approximately $2.7–2.9 billion in fuel-energy tax revenue since FY2013.
- Despite public messaging linking the tax to clean energy and the Montgomery County Green Bank, only about $50–55 million (roughly 2%) has been directed to the Green Bank.
- The remaining 98% flowed into the County’s general fund for unrestricted use.
“Let’s be clear: if 98% of the money can be used for anything, this is not a climate tax, it’s a slush fund to be used indiscrimantely for fraud, waste, and abuse, not to mention for political purposes,” Maldonado said. “It’s another general revenue tax dressed up with green language to make it easier to sell to the public. Residents are being lied to, again.”
Critics say this reflects a broader pattern under Elrich and the Council — expand spending first, justify it later, and rely on opaque or misleading revenue streams to pay for it.
“This is exactly why trust in local government is collapsing,” Maldonado added. “When the Executive and the Council say one thing and do another with taxpayer money, people notice.”
The controversy comes as Montgomery County’s budget continues to grow, with an increase in property, income taxes, and utility rate hikes, placing increased financial pressure on residents already dealing with higher costs for housing, utilities, and everyday essentials.
Opponents argue that County leadership continues to fail in providing clear, honest accounting of how fuel-energy tax revenues have been used— while continuing to defend the tax using environmental talking points.
“This is not about being pro- or anti-environment,” Maldonado said. “It’s about honesty and accountability. If you’re going to take hundreds of millions from residents, you owe them the truth about where it’s going and how it’s being used.”
Maldonado is calling for immediate action, including:
- A full independent audit of fuel-energy tax revenues and expenditures.
- Clear reclassification of the tax as general revenue unless a majority is legally dedicated to environmental use.
- Stronger oversight to ensure taxpayer funds are used as represented.
“Montgomery County residents are being asked to pay more and more every year,” Maldonado said. “This is a pattern Erlich and the Council have followed for years and residents are tired of being their ATMs. We have a failed county government. The least this government can do is be honest about why — and where that money actually goes, but we all know they’re never going to be honest.”
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Maldonado for Council: