Maryland officials say they are exploring how artificial intelligence could be used to support parts of the state’s food assistance program after the state was awarded federal grants aimed at modernizing public services.Gov. Wes Moore’s office announced Tuesday that Maryland secured more than $2.6 million in grants over two years to fund artificial intelligence projects across several state agencies. One of the projects focuses on developing tools to help streamline work verification for food assistance and Medicaid programs, according to the state.
The effort is being led by the Maryland Department of Human Services, along with the Maryland Department of Health, Maryland Benefits and the Maryland Health Benefit Exchange, as part of a multi-state project. State officials said the work will involve developing and testing AI tools that could eventually be deployed more broadly.
The rollout of the AI project comes as Maryland adjusts to recent federal changes to food assistance rules. Those changes stem from H.R. 1, a budget law signed earlier this year that expands work requirements and shifts a larger share of program costs to states.
Under the new law, states are required to cover 75% of food assistance administrative costs, up from the previous 50% federal-state split. Maryland currently spends about $115 million a year on its share of administrative costs. Under the new cost-sharing structure, state estimates show that the amount would increase by roughly $57.5 million annually, bringing Maryland’s total administrative costs to about $172.5 million per year.
The law also allows for benefit cost-sharing tied to payment error rates. States with error rates above 6% may be required to contribute a portion of benefit costs.
Federal data shows Maryland’s food assistance payment error rate was 13.64% in fiscal year 2024, one of the highest rates in the country. Based on current benefit levels, state estimates show Maryland could be responsible for up to 15% of benefit costs if the rate persists.
Maryland is expecting to issue roughly $1.6 billion in food assistance benefits in 2026. At a 15% state share, that would amount to approximately $240 million in benefit costs.
When combined with the higher administrative costs, state estimates show Maryland’s total annual food assistance costs under the new federal framework could reach about $412.5 million, an increase of just over $300 million compared to what the state currently contributes.
State officials have not said the artificial intelligence tools will reduce costs or error rates. The grants will fund development work over the next two years as Maryland tests how the tools could be used alongside existing systems.
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