Baltimore City has reached a new $48 million agreement with 14 of its largest nonprofit institutions, including major hospitals and universities, aimed at doubling their financial contributions to the city over the next five years.
Announced by Mayor Brandon Scott on Wednesday, the agreement—known as a PILOT (Payment in Lieu of Taxes)—covers Fiscal Years 2027 through 2031.
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Under the new terms, the institutions’ combined annual contributions will rise from $6 million in 2027 to $12 million by 2030.
Baltimore’s economy is powered by ‘meds and eds,’ the institutions that employ, train, educate, and treat so many of our residents,” said Mayor Scott, via press release. “This agreement increases their shared investments in our city, while taking into account the financial strain that they are experiencing as this federal administration continues to target colleges, universities, and hospitals. As always, we are grateful for their significant contributions to our city and our residents, and look forward to continuing to build on our partnership in the years to come.
The 14 institutions include:
Grace Medical Center (formerly Bon Secours Hospital)
Johns Hopkins Hospital
Johns Hopkins Bayview Medical Center
Good Samaritan Hospital
MedStar Harbor Hospital
MedStar Union Memorial Hospital
MedStar Mercy Medical Center
Sinai Hospital
Ascension St. Agnes Hospital
University of Maryland Medical Center Downtown Campus and University of Maryland Medical Center Midtown Campus
Johns Hopkins University
Loyola University Maryland
Maryland Institute College of Art
Notre Dame of Maryland University
These organizations have contributed between $1.4 million and $6 million annually under previous PILOT agreements over the last 16 years.
The largest nonprofit institutions in Baltimore deliver billions of dollars in community impact each year and are deeply invested in the success of the City,” said Matthew Power, president of the Maryland Independent College and University Association (MICUA), via press release. “We are pleased to have a new agreement with Mayor Brandon Scott to increase the annual contribution this group makes to the City. These institutions are proud to be a part of the positive transformation taking place in communities across our city, and they remain committed to working every day to support Baltimore’s residents.
The new deal incorporates annual increases to allow the institutions to gradually scale up their contributions.
It also factors in the ongoing impact of federal funding cuts to healthcare and education—especially affecting smaller nonprofits like Grace Medical Center and Maryland Institute College of Art.
The agreement will be up for renegotiation in FY 2031.
Beyond the new PILOT payments, the 14 nonprofits already contribute $29 million annually in taxes and fees and another $28 million in direct community services.
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This includes $19 million for community safety, $7 million for waste management, and $2 million for public right-of-way maintenance
Collectively, the institutions employ approximately 71,000 people—accounting for one in four private sector jobs in the city—and generate $57.6 million in local income taxes.
In 2024 alone, they invested about $652 million into Baltimore, supporting schools, economic development, health services, and the arts.
We are proud of the deep commitment our nonprofit hospitals have for the City of Baltimore,” the Maryland Hospital Association said in a statement. “They continuously invest in and support a wide array of programs and services including charity medical care, support for local schools, and community health services throughout the City that help improve the health and well-being of Baltimore residents.
Over the five-year term, assuming stable economic conditions, the city estimates these nonprofits will contribute a total of $481 million to the General Fund when including PILOT payments, taxes, and fees.