Audit: Maryland kept SNAP benefits flowing to $2M lottery winner, incarcerated people

[00:00:02]This is a basic uh This is basic oversight and right now the state is failing at that.

[00:00:09]>> A new state audit shows Maryland wrongly paid SNAP benefits to lottery winners and incarcerated people.

[00:00:15]>> Fox 45's McKenzie Frost breaks down the latest findings and concerns from taxpayer watchdogs.

[00:00:22]In another scathing audit for the Department of Human Services, millions of dollars in benefits were paid to people who should not have received it.

[00:00:30]The state says it's working to fix the issues, but the audit shows this is not the first time these problems have been uncovered.

[00:00:38]>> It's another state audit showing how your tax dollars are potentially being misspent. The latest findings show the Department of Human Services failed to cut off benefits to a lottery winner.

[00:00:51]Auditors discovered the lucky person won a $2 million prize in July 2023, yet the state continued paying benefits through February 2026. Federal regulations require benefits are cut off 10 days after a substantial prize win.

[00:01:09]But, that's not all. Between June 2021 and February 2025, auditors also found more than 1,800 inmates collecting SNAP or temporary cash benefits.

[00:01:21]>> This is a big problem when you have 1,800 people that should not be receiving food stamps that are receiving food stamps.

[00:01:28]>> David Williams with the Taxpayers Protection Alliance says the sheer number of people still collecting benefits while incarcerated highlights the issue.

[00:01:38]>> Now, this isn't one or two. This is almost 2,000. It shows you the extent of the problem.

[00:01:44]>> Maryland's SNAP error rate has been in the news for months. Under 2025 federal rules, states will be penalized for rates higher than 6% requiring state governments to foot the bill for part of the snap costs. That new penalty kicks in October 2027, but it can be delayed until 2030.

[00:02:05]In 2022, Maryland had an error rate of 35 and 1/2%.

[00:02:10]The most recent data from 2024 shows Maryland sitting at 13.6%.

[00:02:17]The national average is around 11%.

[00:02:20]Auditors say they received a tip alleging Maryland may have intentionally manipulated the error rate to defer the increased cost under the 2025 federal rules. Even though they could not prove the allegation, auditors still found DHHS failed to take sufficient action resulting in $28 million in penalties.

[00:02:42]>> Management of the SNAP program at the state level is broken and it's costing taxpayers and it's going to cost taxpayers even more with the new rules that were put in place.

[00:02:52]>> Four findings in the audit are repeat problems and William says that underscores the broader problem.

[00:02:59]>> Unfortunately, this is typical for the state where there's a previous audit, they ignore it, and then there's a new audit talking about the same problems. Now, when there's an audit, it's not just good enough to have the audit. There has to be follow through.

[00:03:13]>> The auditors identified other issues including Medicaid eligibility problems, cybersecurity gaps, and contract oversight failures.

[00:03:22]>> The state says it has already hired more staff, automated parts of the system, and is working to correct these issues.

[00:03:28]But the legislative auditors say many of these same problems have been flagged for years, which means the real question now is whether this time the fixes will stick. In the studio, McKenzie Frost, Fox 45 News.

[00:03:42]>> I'm Mary Bubala. Thank you for watching.

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