Maryland never launched $44M online childcare system meant to monitor funds

Project Baltimore obtained documents revealing that the Maryland State Department of Education (MSDE) was awarded $44 million to develop an updated online system to better track tax dollars for childcare programs, but the system was never launched, according to FOX45 Baltimore.

This revelation follows FOX45's confirmation that MSDE made millions of dollars in erroneous payments to childcare providers, highlighting issues within the state's Child Care Scholarship Program.

Chris Peusch of the Maryland State Child Care Association, a nonprofit supporting childcare providers, criticized the system's preparation and execution, stating it was "not a good system." She emphasized that the program's failures should not negatively impact the reputation of childcare providers who are working diligently.

Maryland’s Child Care Scholarship Program provides financial assistance to families with income-eligible children under 13, or under 19 with qualifying disabilities. In 2026, the program received $560 million in taxpayer funding, more than triple previous amounts, underscoring the importance of effective oversight.

The failure to implement the $44 million system raises concerns about the management of significant public funds intended to support childcare in Maryland, especially as the program continues to grow in scale.