ANNAPOLIS, Md. — The State Highway Administration has denied intentional wrongdoing and defended its practices in an email statement sent Friday, Sept. 12.
Charlie Gischlar, deputy director of the Maryland Department of Transportation (MDOT) and the State Highway Administration (SHA), provided the following statement:
“The Maryland State Highway Administration (SHA) is actively working with our federal partners to review expenses for eligibility and seeking full recovery for all eligible expenses on our federal aid projects. SHA has not purposefully miscoded or mischarged expenditures as federal funds, as federal reimbursement remains possible and is being pursued. Like other states, SHA uses federally approved accounting practices and standards to maximize federal funds to effectively develop and deliver highway projects. SHA remains committed to transparency, accountability, and cooperation with the Office of Legislative Audits to ensure public funds are responsibly managed in accordance with all laws and regulations.”
The Maryland House Republican Caucus claimed in a press release that the audit released from the Department of Legislative Audits on Sept. 11 shows that SHA officials charged nearly $360 million in unauthorized expenses to federal funds in an intentional attempt to minimize the deficit in the Transportation Trust Fund (TTF). From 2020 to 2025, unauthorized federal fund expenditures increased by 3,523%, with the most significant increases occurring since June 2023.
According to the press release, the concern was first reported to the Fraud, Waste and Abuse Hotline operated by the Office of Legislative Audits, and the findings were not referred to the Attorney General’s Criminal Division.
The Maryland House Republican Caucus called on Maryland Attorney General Anthony G. Brown to investigate the findings in the audit. The attorney general has not publicly responded.
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