Politics
Maryland senators withdraw federal funding requests for two Baltimore nonprofits
Sens. Angela Alsobrooks and Chris Van Hollen pulled requests for federal funding to KEYS Empowers and the North East Housing Initiative after investigations raised questions about the organizations’ finances. The requests were withdrawn before Congress approved its fiscal 2027 budget.
Maryland’s two U.S. senators have withdrawn federal funding requests for Baltimore nonprofits facing scrutiny over their finances, after investigations raised questions about oversight and the organizations’ use of public money.
The requests, submitted April 20, included $3 million apiece from Sens. Angela Alsobrooks and Chris Van Hollen for KEYS Empowers, a human services organization. Van Hollen also requested $1 million for the North East Housing Initiative, or NEHI. Both senators’ offices said the requests were withdrawn after they learned of investigations. Congress had not yet approved its fiscal 2027 budget.
KEYS Empowers was raided by the FBI in September, according to the report. Its executive director, Mujahid Muhammad, resigned from the Baltimore City Board of School Commissioners shortly afterward. The raid does not establish that wrongdoing occurred.
A Maryland Office of the Inspector General for Health report, published April 30, said KEYS Empowers should return more than $400,000 to the state—about half the state funding it received over three fiscal years. The report cited overfunding, discrepancies in records and inadequate documentation.
NEHI has also faced scrutiny. Investigations have reported on a federal inquiry involving a cryptocurrency donation, federal tax liens and lawsuits alleging millions of dollars in additional debt. The organization’s CEO and president, Garrick Good, has been involved in criminal and bankruptcy cases and resigned from NEHI this month, according to the report.
The funding requests have renewed questions about how thoroughly congressional offices vet organizations before recommending federal dollars. Jeremy Portnoy, an investigative reporter with government-funding watchdog Open the Books, said Congress lacks sufficient oversight of money lawmakers direct to projects in their districts.
“It shouldn't take Spotlight on Maryland to reveal these issues,” Portnoy said, arguing that senators should be able to identify concerns before requesting federal funding. He also said the volume of earmark requests can make oversight difficult.
Van Hollen’s office said organizations submit requests and that his staff received input from state and local partners. The office said he withdrew the requests after learning of the investigations and prioritizes responsible use of taxpayer funds.
Alsobrooks’ communications director, Meredith Happy, said her office used the same process it applies to other Maryland organizations seeking federal support and moved to ensure the groups would not receive appropriations after learning of an investigation. Happy said Alsobrooks believes leaders have a duty to spend public money carefully. The office did not answer a follow-up question about who submitted the KEYS Empowers request.
KEYS Empowers and NEHI did not respond to requests for comment. Muhammad’s email response was an out-of-office message, while Good declined to comment on NEHI’s funding request.