Baltimore School Board Approved Voided Contract
The city canceled a $21 million mental health contract after discovering a board member's ties to a chosen vendor.
Updated on Oct. 14, 2026 in Administration
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On June 10, 2025, the Baltimore City Board of School Commissioners voted 8-0 to approve a $21 million, three-year mental health services contract involving eleven vendors. City Schools eventually canceled the deal with one vendor, KEYS Development, after paying them $80,000.
Why it matters
The contract was voided following the revelation that then-board member Mujahid Muhammad served as the resident agent for KEYS Development. The situation surfaced after federal authorities raided the company headquarters on Liberty Road, leading to Muhammad's resignation.
The school board approved a $21 million contract spanning three years for mental health services. Of the eleven selected vendors, City Schools paid $80,000 to KEYS Development before canceling their specific portion of the agreement.
The players
Baltimore City Board of School Commissioners
The governing body responsible for overseeing the Baltimore City Public School system and managing district procurement contracts.
Mujahid Muhammad
A former member of the school board who resigned after federal investigators raided a company where he served as a resident agent.
KEYS Development
A vendor previously selected for the district's mental health contract that became the subject of a federal raid on Liberty Road.
The details
The board approved the vendor list through a unanimous 8-0 vote. The contract cancellation occurred after it was disclosed that board member Mujahid Muhammad held a professional role as resident agent for KEYS Development, which was among the selected entities. Federal law enforcement officials subsequently raided the company headquarters located on Liberty Road.
Timeline
June 10, 2025: Board members voted to approve the $21 million vendor contract.
September 2026: Mujahid Muhammad resigned from his position on the school board.
October 2026: A general election was held for school board members.
The Home Front
This incident highlights the importance of transparency and ethics oversight in local school district procurement processes. It serves as a reminder that administrative accountability is critical when allocating public funds for student services.
Families can monitor school board meeting minutes and public procurement records to stay informed about how education funds are managed in their district. Contact your local school board representative if you have questions regarding the vetting process for service providers.
The takeaway
Maintaining oversight of district-level financial decisions is a key way to ensure accountability in student mental health programming. Residents should review public board meeting agendas to identify upcoming contract votes.
Further reading
For more information on school district oversight, visit the Baltimore administration page.
Source note: This article includes information reported by WBFF.
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