Maryland Lawmakers Threaten to Withhold $750K from Troubled DHS

State legislators aim to send a message about ongoing accounting issues and lack of urgency at the Department of Human Services.

Published on Feb. 27, 2026

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State lawmakers in Maryland are considering withholding $750,000 in funding from the embattled Department of Human Services (DHS) until the agency provides answers on how it plans to resolve ongoing accounting problems. Delegates are frustrated by repeat audit findings showing DHS struggles to properly track and account for nearly $4 billion in state funding, as well as issues like the 2025 death of a 16-year-old foster child staying in a hotel due to lack of placement options.

Why it matters

The DHS budget issues raise concerns about the agency's competence and urgency in addressing problems, as well as the potential risk to critical federal funding that makes up 70% of the DHS budget. Lawmakers hope withholding a portion of state funding will send a strong message and spur necessary reforms.

The details

Lawmakers say DHS has had nearly four years to correct accounting problems identified in audits, but the agency continues to lack basic financial controls and data collection systems. DHS officials acknowledged the budget issues and agreed to provide answers requested by state auditors in the coming months. The move to withhold $750,000 in funding comes as DHS Secretary Rafael López is stepping down, citing health reasons.

  • In September 2025, 16-year-old foster child Kanaiyah Ward died by suicide while staying at a Baltimore hotel due to lack of placement options.
  • On Wednesday, DHS officials briefed a House subcommittee on the agency's budget and data collection problems.
  • DHS Secretary Rafael López is stepping down effective Monday, February 24, 2026.

The players

Maryland Department of Human Services (DHS)

The state agency responsible for providing social services, including foster care, that has faced repeated audits highlighting accounting and management issues.

Malcolm Ruff

A Baltimore City delegate who says withholding $750,000 in funding from DHS sends a message about the need for competence and urgency in addressing the agency's problems.

Rafael López

The outgoing DHS Secretary who is stepping down effective Monday, citing health reasons.

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What they’re saying

“There is clearly a reset that needs to happen. Withholding three-quarters of a million dollars from the administration is significant, but it sends more of a message to the people to say, 'We, as a Legislature, will not sit by while there are deficiencies in the executive department and not take any action.'”

— Malcolm Ruff, Baltimore City Delegate (WBAL-TV 11 News)

“It's, unfortunately, a lack of competence and lack of urgency. They are still without numbers for the department from fiscal year 2025.”

— Malcolm Ruff, Baltimore City Delegate (WBAL-TV 11 News)

What’s next

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The takeaway

This case highlights growing concerns in the community about repeat offenders released on bail, raising questions about bail reform, public safety on SF streets, and if any special laws to govern autonomous vehicles in residential and commercial areas.