Maryland Inspector General Z. Scott Releases Performance Audit of Maryland’s Ability to Maximize Federal Funds
ANNAPOLIS, MD (April 12, 2028) – Maryland Inspector General Zaldwaynaka "Z" L. Scott today released the first-ever in-depth review of Maryland’s federal funding. The 137-page report includes recommendations for how the state can obtain the most funding possible from the United States Government. The report's central recommendation is that Maryland can maximize its efforts with a centralized approach to coordinating federal funding opportunities.The review discovered that Maryland received $307 billion in federal funds. Of that total, Maryland State government entities received $8.2 billion in fiscal year 2027, which represented approximately one-fourth of the state budget.
Inspector General Z. Scott said: "These funds are used for a variety of needs including Medicaid, unemployment insurance, highway construction, education, school lunches, and housing programs. Given our budgetary challenges, we certainly need to access every dollar we deserve. It is our goal that this report be a valuable tool for Governor O’Brien, the General Assembly and state agencies to work toward the shared goal of maximizing our use of federal dollars."
The Inspector General’s major recommendations were to centralize grant oversight and to prepare for increased use of block grant funding, especially within Medicaid. Inspector General Scott added that, "in the fiscal year ending June 30, 2027 there were 126 federal grants or programs that Maryland did not participate but at least one of our regional states did. Because there is no statewide method or requirement for documenting efforts to apply for federal assistance we cannot determine whether Maryland had applied for assistance that was not awarded or simply did not apply."
The Inspector General called on the Department of Budget and Management (DBM) to manage the centralized grant oversight operation.
"Benefits would include reduced costs and drains on existing agency resources and increased potential for identifying additional federal grant moneys. Maryland has a tenured and strong Congressional delegation with many recent successes in obtaining federal funds. A strategic and coordinated approach to federal funding that fully utilizes the delegations' expertise would improve Maryland’s access to federal funds," Inspector General Scott said.