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Maryland Audit: $2 Million Lottery Winner Kept Collecting Food Stamps

A July audit from the state of Maryland found that the government paid Supplemental Nutrition Assistance Program benefits to someone who won $2 million in the lottery and often failed to properly pay out benefits. 

 The 56-page audit vetted $1.9 billion of payments through public assistance programs through the Department of Human Services from June 1, 2021 through Feb. 28, 2025. The Family Investment Administration oversees public assistance programs administered by 24 local social services departments, including SNAP, temporary cash assistance, temporary disability assistance program, and home energy assistance programs. 

The audit found that 1,858 people received SNAP and temporary cash assistance benefits while they were in prison because the agency couldn’t identify people who were in prison and who weren’t. 

“Our audit disclosed that FIA did not have comprehensive procedures to ensure that the LDSSs properly determined eligibility for public assistance programs and the related benefits,” the audit from Legislative Auditor Brian S. Tanen said. “As a result, we noted instances where the LDSSs did not maintain required documentation or properly determine recipients’ benefits.” 

 2026_7_20_dhs_audits  by  scott.mcclallen 


The review found $7.1 million in Medicaid claims paid for 546 people that were improper because the agency didn’t redetermine if those people were eligible or not. 

The audit also found that DHS didn’t properly award its contract to upgrade its SNAP chip cards, which delayed the security upgrade that aims to minimize fraud. 


The auditor said that it received a referral via a fraud hotline that state management intentionally manipulated the SNAP error rate. The auditor couldn’t verify the allegation, but it did find that the agency failed to reduce the state’s SNAP error rate, which triggered $28 million in penalties.

SNAP helps feed about 41 million people nationwide. In fiscal year 2025, states paid over $10 billion in improper payments.