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Home – Economy News – Watchdog: Maryland’s Weak Controls Put Millions of Federal Tax Dollars at Risk

Watchdog: Maryland’s Weak Controls Put Millions of Federal Tax Dollars at Risk

Maryland officials struggled to keep track of hundreds of millions of dollars in federal funding, according to an analysis of state financial data.

An audit found the state’s transportation department misreported $417 million, the Department of Human Services poorly tracked more than $200 million in funding, and other agencies committed similar accounting errors.

The fiscal watchdog group Truth in Accounting, which first shared its findings with the Daily Signal, based its analysis primarily on the 2025 Single Audit and Independent Auditor Report. The single audit is a required review for states receiving federal funding.

“Taxpayers deserve to know exactly where their money is going and whether it’s being handled responsibly,” the watchdog’s analysis said.

The findings come as states have faced growing scrutiny over their stewardship of federal taxpayer dollars following high-profile fraud cases in Minnesota and California. Truth in Accounting contends that single audits could be a key tool for the federal government as it ramps up anti-fraud efforts.

The Maryland audit did not find that money was unaccounted for; rather, it gave numerous examples of how federal funds were incorrectly reported or classified.

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“Until Maryland addresses these root causes, the risks to accurate reporting and accountable governance will........

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