Maryland Audit Finds $28 Million in Federal Penalties for Benefit Errors

A July 15 report from the Office of Legislative Audits revealed that the Maryland Department of Human Services failed to properly vet public assistance recipients, resulting in $28 million in federal penalties. The audit found that the agency allowed improper payments of Supplemental Nutrition Assistance Program (SNAP) and Temporary Cash Assistance (TCA) benefits to continue over several years.

Specific failures include one individual receiving SNAP benefits from July 2023 to February 2026 after winning a $2 million lottery prize. Furthermore, 1,858 incarcerated individuals received benefits between July 2022 and March 2025 despite being imprisoned for more than 30 days. The report noted that systemic management failures date back to 2007 and that the state's SNAP payment error rate remains above the national average.

David Williams, president of the Taxpayers Protection Alliance, described the state's management of the SNAP program as broken and a failure of basic oversight. The Maryland Department of Human Services agreed with most of the audit's recommendations. To correct these issues, the agency is hiring nearly 200 new staff and expanding its use of automated verification.