The swath of Bureau of Land Management land includes parcels in St. George and Washington and Beaver counties.
The Salt Lake Tribune reports the House Natural Resources Committee passed the amendment, which will get a full House vote.
Maloy said in the committee hearing Tuesday night, the land could be used for affordable housing and address water concerns in arid, growing St. George, which is in her district.
The amendment comes after House Republicans added a provision to a sweeping tax cut package that would authorize the sale of hundreds of thousands of acres of public lands in Nevada and Utah.
The Associated Press reports the provision prompted outrage from Democrats and environmentalists who called it a betrayal that could lead to drilling, mining and logging in sensitive areas.
The committee voted 26-17 to allow increased leasing of public lands for natural resource extraction, and clearing a path for more development by fast tracking government approvals.
Republicans said the overall bill would generate at least $18 billion in new revenue and savings.
In Utah, the parcels would be sold at fair market value to local governments and make up a third of 1% of public lands in the state.
The federal government owns 35 million acres of land in Utah, over 64% of the state. Of that, the BLM manages 22.8 million acres.
