Posted on 01/06/26
| News Source: FOX45
Annapolis, MD - Jan. 6, 2026 - With Maryland staring down a projected $1.4 billion budget deficit that state analysts warn could deepen in the coming year, scrutiny is intensifying over how effectively the state protects taxpayer dollars from fraud and abuse.
The questions have grown louder amid the national fallout from a Minnesota fraud scandal that federal prosecutors say could exceed $9 billion. Facing backlash, Minnesota Democratic Gov. Tim Walz said Monday he will not seek a third term.
Though Minnesota fraud investigations have been ongoing for years, allegations exploded into public view late last month after media outlets and citizen journalists began documenting what appeared to be daycare centers operating largely on paper -- licensed, publicly funded, but allegedly without any children in the buildings. Federal investigators have said their probe stretches beyond child care and focuses more on several social services programs.
The fraud scandal has sent shockwaves across state capitals nationwide.In Maryland, the revelations prompted uncomfortable but unavoidable questions: Could something similar be happening here? And if so, would state leaders even know?
Spotlight on Maryland pressed Democratic Maryland Gov. Wes Moore’s office during a New Year’s Eve interview in Annapolis about whether the state has systems in place to detect large-scale fraud before it metastasizes.
David Turner, a senior advisor and communications director for Moore, emphasized the administration’s efforts to curb waste and inefficiency across state government. Turner pointed to the governor’s “government modernization initiative,” which he said has saved more than $20 million through measures such as consolidating contracts and fleet management.
“I can assure you we are doing everything we can to mitigate any waste, fraud, and abuse,” Turner said, adding that oversight involves coordination among the governor’s office, the attorney general, the comptroller and the General Assembly.
But when asked point-blank whether fraud on the alleged scale in Minnesota is not occurring in Maryland, Turner stopped short of offering a definitive assurance.
To answer your question—can I assure you of that level of abuse?” Turner said. “I don’t have the answer for you on that, but I can assure you we are doing everything we can to mitigate waste, fraud, and abuse.”
That the administration cannot say whether large-scale fraud is occurring has raised red flags among critics who argue that prevention, not reaction, should be the hallmark of effective governance.
Former Maryland Gov. Bob Ehrlich, a Republican, reacted with skepticism to the Moore administration’s response, saying it left more questions than answers.
“I don’t know what that means,” Ehrlich said with a laugh when told of Turner’s remarks.
Ehrlich stressed that although there is no evidence of Minnesota-style fraud in Maryland yet, the situation demands heightened vigilance, especially given that similar programs and funding structures exist across states.
There are a lot of elements to this story,” Ehrlich said. “I would certainly hope that nothing to this scale is occurring in Maryland. I have no evidence to support or think that otherwise, but if it is happening in other states, as part of the job description, Maryland needs to take a closer look at all of its sectors.”
Good-government advocates say the Minnesota scandal highlights a broader national vulnerability in how public funds are distributed and monitored, especially in social services, where trust, speed, and scale often collide.
Scott Walter, president of the Capital Research Center, an independent investigative think tank, said the issue is not limited to one state or one political party.
“If you get taxpayer dollars, you should be able to show you are actually helping people with that,” Walter said. “And it should be easy for the public to see whether you’re helping.”
Walter argued that transparency is often promised but rarely delivered in a way that allows taxpayers to independently verify outcomes. Databases may exist, he said, but they are frequently incomplete, outdated, or inaccessible to the public.
The Minnesota case underscores those concerns.
Since 2022, federal authorities there have made more than 90 arrests following reports of widespread fraud. The arrests came only after years of warnings from state employees and whistleblowers who said oversight mechanisms were failing.
In Maryland, Spotlight on Maryland asked Moore’s office whether the state would proactively partner with federal investigators to audit high-risk sectors for fraud, similar to steps taken in other states after the scandal erupted. As of publication, Turner changed his prior statements from Wednesday, claiming he is “not tracking MN.”
A midwestern state is already signaling a more aggressive posture.
Ohio Governor Mike DeWine, a Republican, said last week that his administration is taking proactive steps to review spending, acknowledging that “people are rightfully concerned” about taxpayer fraud.
Ehrlich said Maryland should adopt a similar approach as it approaches what he described yet another fiscal cliff.
“People see more dollars, tax increases, fee increases, more revenue flowing to Annapolis for less results,” Ehrlich said. “That’s not fraud—that’s negligence. That’s bad leadership. And to the extent that people see it and taxpayers feel it, there could be consequences come Election Day.”
The offices of Maryland State Senate President Bill Ferguson and House Speaker Joseline Pena-Melnik did not acknowledge an email request for comment on Monday.