A Florida grand jury concluded that the administration of Gov. Ron DeSantis (R) diverted $10 million in taxpayer funds from a Medicaid settlement into a nonprofit that eventually funded political campaigns. The grand jury report, obtained by CBS News, stated that while the money was "misappropriated" for political purposes, there was insufficient evidence to bring criminal charges because no official would take responsibility for the decision.
The funds originated from a settlement with health care company Centene, which was accused of overbilling the Florida Healthy Kids program for prescription drugs. While at least 20 other states reached settlements as early as 2021, Florida's $67 million settlement was finalized in September 2024. The agreement directed $57 million to the state and $10 million to the Hope Florida Foundation, a nonprofit supporting an initiative led by Florida's first lady, Casey DeSantis.
According to the report, the $10 million was transferred through the foundation to two outside organizations, Secure Florida's Future and Save Our Society from Drugs, within 25 days of receipt. Those groups then transferred $8.5 million to Keep Florida Clean, a political action committee (PAC) chaired by James Uthmeier, the governor's then-chief of staff. The PAC funds were used to oppose Amendment 3, a 2024 citizen initiative to legalize marijuana.
The grand jury identified Uthmeier and then-Attorney General Ashley Moody (R) as having knowledge of or authority over the transfer. Uthmeier described the matter as a "nothingburger" and stated that no laws were broken. Moody, who was later appointed to the U.S. Senate, has not commented. Gov. DeSantis characterized the report as a "hoax" and stated that while he was not involved in the settlement, he was satisfied with the outcome.
The concrete impact for citizens involves how public funds from legal settlements are controlled and spent. The report details a process where money intended for public health was instead used for political advertising against a specific ballot measure. This sets a precedent for how executive agencies might bypass the Florida Legislature's constitutional authority to appropriate state funds. The grand jury noted that the "rushed" seven-day funding timeline for the nonprofit, compared to the one-year repayment schedule for the state's portion, coincided with the 45 days leading up to the 2024 general election.
The grand jury recommended that the Florida Legislature pass new laws requiring all state settlement funds to be deposited into the General Fund to ensure legislative oversight. Future actions depend on whether state lawmakers introduce these changes in upcoming sessions. Additionally, court proceedings regarding the release of further details remain pending following a request by the Florida Center for Government Accountability. James Uthmeier and Ashley Moody are both up for election in November.