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Maryland gives Northrop Grumman $20M

Rachel Baye

State lawmakers voted Tuesday to approve a $20 million incentive for aerospace and defense giant Northrop Grumman. The money is intended to motivate the company to keep 10,000 jobs in Maryland and spend $100 million on new office space in Linthicum.

Under the deal, Northrop Grumman will receive $5 million a year for four years from the state's "Sunny Day" fund to encourage economic development. In exchange, it must maintain an average 10,000 workers in Maryland for 10 years. If the company fails to hold up its end of the deal, it will be on the hook for repaying some or even all of the money.

Secretary of Commerce R. Michael Gill told a legislative panel on Tuesday that Northrop Grumman has already fulfilled its commitment for new office space in Anne Arundel County.

Senate President Mike Miller praised the agreement and Northrop Grumman, one of the state’s largest employers. But he criticized Gov. Larry Hogan for keeping legislative leaders out of the loop during negotiations.

“It’s a deal that needs to happen. And we made it happen and we’re going to make it happen, but it can’t ever happen like this again,” he said.

The deal is part of a compromise between the Democratic General Assembly leaders and the Republican governor, who has agreed to give local governments $20 million to help offset rising teacher pension costs. The compromise also includes a tax break for Marriott, which is based in Bethesda.  Both measures will have to be approved by the General Assembly.

The legislature approved a separate $37.5 million tax cut for Northrop Grumman in April.

Rachel Baye is a senior reporter and editor in WYPR's newsroom.
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