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MDOT turns to grants to help businesses hurt by Purple Line construction

Construction of the Purple Line runs along Campus Drive on the campus of the University of Maryland on March 12, 2024. (Caroline Koutsos/Capital News Service)

Construction of the Purple Line runs along Campus Drive on the campus of the University of Maryland on March 12, 2024. (Caroline Koutsos/Capital News Service)

MDOT turns to grants to help businesses hurt by Purple Line construction

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Key Takeaways:

  • Maryland awarded $500,000 to 40 businesses near construction.
  • Businesses received $5,000 to $40,000 each to offset revenue loss and disruption.
  • The state will award $4 million over four years with three grant rounds annually.
  • The Purple Line is reportedly 80% complete, with service expected to start in winter 2027.

The has awarded a total of $500,000 in a second round of for businesses located along the Purple Line to help offset lost revenue, disrupted operations and other potential harm from construction of the light rail project.

About 40 businesses received grants of between $5,000 and $40,000, though more than 350 businesses applied, according to the department.

There will be more opportunities for the businesses to apply for funding. The state is expected to grant $4 million over four years to businesses that are within a quarter mile of the Purple Line, with three grant rounds each year.

“Small businesses are the heart of Maryland’s economy and its diverse communities, providing jobs, essential services and economic opportunities,” acting Secretary Samantha Biddle said in a statement. “It is critical that small businesses impacted during construction of the Purple Line are supported.”

The program began in February. During the first round of grants, the transportation department awarded a total of $1 million to businesses impacted by construction.

The next grant cycle will begin Oct. 6, with awards going out in mid November.

The 16-mile, 21-station Purple Line, first approved in 2016 under Republican former Gov. Larry Hogan, will be a light rail line between Bethesda to New Carrollton, connecting to multiple Washington, D.C., Metro lines and to MARC, Amtrak and local bus services.

Delays and multibillion-dollar cost overruns have plagued the project for years. What started as a $5.6 billion price tag over 30 years has ballooned to nearly $10 billion.

The line is expected to open for service in winter 2027, though transportation officials have previously been hesitant to say that the project won’t continue to experience setbacks.

The Purple Line is reportedly 80% complete, and 14 of the 28 light rail vehicles have arrived at an operations and maintenance facility, according to the department.

During a meeting in 2024, transportation officials said the more recent need to prolong the project has arisen from delays in relocating utilities, the challenges and complexities of construction in an area with substantial pedestrian and vehicle traffic, national workforce and supply chain issues, and high inflation.