Maryland errors lead to $10.7M childcare overpayments, state won’t recover funds

Maryland officials have acknowledged that childcare providers across the state, including Baltimore and surrounding areas, received $10.7 million in overpayments due to an error, FOX45 Baltimore reported.

The overpayments occurred within Maryland’s Child Care Scholarship Program, which assists families with children under 13 or those under 19 with qualifying disabilities. The program’s funding has increased significantly in recent years, from $132 million in 2022 to $560 million in 2026, according to Project Baltimore.

Despite the large sum involved, the Maryland State Department of Education has chosen not to recover the overpaid funds. This decision has raised legal questions from a state senator, while state education leaders defend the choice.

Dr. Joshua Michael, President of the Maryland State Board of Education, and Dr. Carey Wright, Maryland State Superintendent of Schools, spoke with Project Baltimore emphasizing the importance of transparency and acknowledging the problem. They stressed that taxpayers should be concerned about the issue.

Project Baltimore previously reported on internal audits and emails from the Maryland State Department of Education that highlighted the overpayments, which had not been publicly disclosed before.

The Child Care Scholarship Program is designed to provide financial assistance to income-eligible families, but these recent findings have sparked debate about oversight and accountability in the program.