By MDBayNews Staff
Credit: This article is based on reporting by Tessa Bentulan for Spotlight on Maryland, a collaboration between The Baltimore Sun and FOX45 News, published February 25–26, 2026.
For years, Maryland politicians have claimed they are champions of the poor. They hold press conferences about “equity,” “uplift,” and “supporting working families.” But according to a new Spotlight on Maryland investigation, when it comes to the state’s primary cash welfare program for the poorest families, the numbers tell a very different story.
In fiscal year 2023, Maryland spent approximately $833 million in combined federal and state Temporary Assistance for Needy Families (TANF) funds.
Only 24% — about $200 million — actually went to direct cash assistance for low-income families.
That means roughly three-quarters of the money — more than $600 million — never reached struggling parents as cash in hand.
The Program’s Purpose — and the Reality
TANF, created under the 1996 welfare reform law, was designed to provide temporary cash support to the poorest families with children. In Maryland, it’s called Temporary Cash Assistance (TCA).
The families it targets are the “poorest of the poor” — often parents earning less than $500 per month.
Maximum monthly benefits in Maryland:
- Family of 3: $753
- Family of 6: $1,149
- Family of 21: $3,183
Meanwhile, average rent in Maryland ranges from $1,600 to $2,000 per month.
Even the maximum benefit for many families doesn’t cover housing alone.
And yet, despite these stark realities, only 24% of TANF-related spending went toward direct cash support.
Where Did the Other 76% Go?
According to the Spotlight investigation and state budget documents, non-cash allocations included:
- Foster care maintenance payments: $27.2 million
- Local child welfare services: $18.6 million
- Adult services: $11 million
- Social services administration (state operations): $10 million
- General administration: $11.3 million
Those categories alone total nearly $80 million — and they represent just a portion of the $600+ million spent outside direct assistance.
Other uses include:
- Job training and work programs
- Transfers to related social services
- Administrative overhead
- System operations
- Various “allowable” federal purposes
To be clear: many of these programs serve legitimate needs. But they are not direct cash assistance to struggling families.
The question is simple: If TANF is supposed to be a cash lifeline, why is most of it functioning as a budget balancing tool?
Even Democrats Are Raising Eyebrows
Interestingly, concern about TANF spending isn’t coming solely from the right.
Del. Emily Shetty (D-Montgomery County) told Spotlight the program serves “the poorest of the poor” and that prioritizing spending toward direct assistance should be a House priority.
Sen. J.B. Jennings (R-Baltimore/Harford) went further, calling the use of TANF to “backfill” other shortfalls “wrong.”
Even Maryland’s Department of Human Services acknowledged that cash assistance should play a central role — while also stating all spending complies with federal rules.
And that’s the key point: It may be legal. But is it honest to taxpayers?
The Bigger Picture: A National Problem — and a Maryland Pattern
Nationally, TANF has long been criticized for turning into what the Wall Street Journal once called a “slush fund.” States have broad flexibility to shift money into child welfare, pre-K programs, administration, and unrelated budget items.
Maryland is not alone in this practice.
But Maryland’s political class cannot have it both ways.
They cannot:
- Claim to be champions of the poor,
- Demand higher taxes in the name of “equity,”
- Warn constantly about housing crises and child poverty,
- And then allow only one-quarter of TANF funds to go directly to families.
If direct cash support is insufficient — and by any objective measure it is — then transparency and reform should follow.
Instead, the system continues quietly, year after year.
What This Means for Maryland Taxpayers
Maryland receives about $228 million annually in federal TANF block grant funding, with the state adding millions more. That block grant amount has not changed since 1996.
When inflation, rent, and food prices have skyrocketed, the cash portion has barely kept pace — while the non-cash share remains dominant.
If Annapolis is serious about helping struggling parents, it should start with a simple reform:
Put the money where the families are.
Not into administrative layers.
Not into budget patchwork.
Not into bureaucratic expansion.
Into the hands of the parents the program was created to serve.
Until that happens, Maryland’s TANF system will continue to look less like a safety net — and more like a shell game.
Sources
Reporting by Tessa Bentulan, Spotlight on Maryland (Feb. 26, 2026), published via The Baltimore Sun and FOX45 News.
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