A new state audit says Maryland’s Department of Human Services dropped the ball on oversight of SNAP and other public assistance programs, allowing questionable payments to keep flowing. The review cites everything from missing paperwork and loose controls over EBT cards to cases involving a $2 million lottery winner and people who were behind bars.
According to Maryland Matters, the Office of Legislative Audits’ July 15 report on the Family Investment Administration covers June 1, 2021, through Feb. 28, 2025, and lays out a string of failures. Auditors found one recipient who kept getting benefits after winning a $2 million lottery prize and at least 1,858 instances in which incarcerated individuals received SNAP or Temporary Cash Assistance.
Local TV outlet WMAR2 dug into the audit data and highlighted how large the gaps were on basic paperwork and eligibility checks. In April 2021 alone, 86,479 of 465,038 Maryland households receiving SNAP had incomes that exceeded federal limits. Auditors said automated controls and follow-up processes were not always functioning as they should. WMAR2 also reported that agency officials told investigators they did not intend to pursue reimbursement in some mistaken payment cases, pointing to a USDA guidance memo that has since expired.
What the Audit Says About EBT Cards and Case Files
The Office of Legislative Audits and the DHS Office of Inspector General described recurring problems with how local departments handle day-to-day work. They cited weak controls over EBT card inventories and slow or missing follow-up when computer matches flagged possible eligibility errors. In some local social services offices, staff did not keep the required documentation to verify income, work status or immigration status, which raises the risk that improper payments will continue.
The Office of Legislative Audits report recommends tighter control over benefit cards, faster review of data matches and stronger monitoring of contracts tied to the programs.
DHS Response and a Move to Chip-and-tap Cards
The Department of Human Services says it has already started trying to clean things up. One centerpiece is a rollout of EMV chip-and-tap EBT cards this summer that is intended to make benefit cards harder to skim or misuse. In a state press release, the department described the card transition and outreach to customers, and local coverage has noted DHS’ statement that broader reforms are in motion. DHS News.
Why Auditors and Lawmakers Are Watching
The timing of the audit matters. Reporting by Maryland Matters notes that a recent federal law links what states pay to an overall SNAP payment error rate. Maryland’s rate was 13.64% in fiscal 2024 and 13.08% in fiscal 2025, a shift that could influence how much of the cost the state might have to shoulder if errors continue.
Auditors also pointed to procurement and contract questions tied to the EBT upgrade. On top of that, they reported receiving a tip through a fraud hotline alleging manipulation of payment error rate reporting. The auditors said they could not substantiate that allegation and did not find that it warranted referral to the Attorney General’s Criminal Division. Maryland Matters outlined both the findings and the agency’s response.
Next Steps and Oversight
On the legislative side, state budget language and fiscal documents give the General Assembly leverage to push for fixes. Previous budget analyses have suggested withholding portions of administrative funding until repeat audit findings are resolved, and department officials say they are working through corrective action plans.
For a deeper look at those tools and the broader funding picture, the state’s fiscal analysts have detailed the options in their reviews of the Family Investment Administration. Department budget analysis.
For now, the audit is ramping up pressure on DHS and local departments to keep better records, move faster on computer match follow-ups and lock down EBT security. Officials say those efforts are already underway, while lawmakers and auditors watch to see whether the promised changes stick.
