State Highway Administration officials “knowingly charged” nearly $360 million in unauthorized expenses to federal fund projects in an attempt to hide a deficit in the state’s Transportation Trust Fund, according to a report released Thursday by the Office of Legislative Audits.

The audit disclosed SHA routinely charged expenses to federal fund projects not authorized by the federal granting agency. According to the audit report, "More concerning is that the amount of unauthorized spending increased by 3,523 percent including an additional $163.5 million between June 2024 and August 2025. SHA also was unable to provide documentation to support the propriety of accrued federal fund revenue entries totaling $449 million (which would include the aforementioned unauthorized expenses) or the subsequent recovery of the funds."

Source: Maryland Matters.com and Maryland OLA.