Florida Grand Jury Finds DeSantis Administration Misused $10M in Medicaid Funds

A Florida grand jury has concluded that the administration of Gov. Ron DeSantis “misappropriated” $10 million in taxpayer money from a Medicaid settlement, diverting funds intended for poor children’s health care into political action committees that opposed a 2024 marijuana legalization ballot measure. Despite the findings, the grand jury declined to file criminal charges, citing insufficient evidence to identify who specifically was responsible.

The sealed report, completed in January and filed with the Leon County Clerk’s Office on January 28, was leaked and published by CBS News Miami on August 26. The grand jury described the transfer as “part of a sophisticated scheme to fund political activities.”

The Centene Settlement and Hope Florida

The controversy stems from a $67,048,611 settlement between Florida and Centene Corp., the state’s largest Medicaid contractor, which overbilled the state for prescription drugs under the Florida Healthy Kids program. The settlement was negotiated by the Agency for Health Care Administration (AHCA) in September 2024, just weeks before the November election.

According to AP News, the grand jury found that $10 million from the settlement was directed to the Hope Florida Foundation, a charity tied to First Lady Casey DeSantis’ initiative to help struggling families connect with churches and aid groups. The foundation had never received a donation larger than $100,000 before the Centene transfer.

The money was transferred to Hope Florida on October 4, 2024, and within 25 days it was gone—split into two $5 million grants to Secure Florida’s Future and Save Our Society from Drugs. Both organizations then transferred nearly all of the funds—$8.5 million combined—to Keep Florida Clean, a political action committee chaired by James Uthmeier, who was then DeSantis’ chief of staff.

Grand Jury Findings

The grand jury found that Uthmeier “was in a position of authority over those involved in settling” the Centene case and that his Keep Florida Clean PAC was the “prime recipient of the majority” of the $10 million. The report noted that testimony identified Uthmeier as having involvement in directing the money after it reached Hope Florida.

The grand jury also concluded that then-Attorney General Ashley Moody was aware of the plans to divert the money and authorized her chief deputy, John Guard, to sign the settlement agreement. Neither DeSantis, Moody, nor Uthmeier testified before the grand jury.

“Despite our finding that the money was misappropriated, we find insufficient evidence to charge anyone criminally,” the report concluded. “Nobody will take responsibility for deciding the $10 million of taxpayer money would go to Hope Florida… or had any memory of who made it.”

The grand jury rejected the administration’s characterization of the $10 million as a “bonus” or “donation” from Centene, stating: “We find that the full Centene settlement was taxpayer reimbursement.” The report also noted the suspicious timing of the settlement, observing that “the rush was due to the impending election which was just 45 days away.”

Political Fallout

The leaked report has ignited a firestorm in Florida politics. Keep Florida Clean used the funds to oppose Amendment 3, the 2024 ballot measure to legalize recreational marijuana, which failed with approximately 56% support—short of the 60% supermajority required.

Democrats have seized on the findings. David Jolly, the Democratic nominee for governor, called for the grand jury probe to be reopened, describing it as “a highly orchestrated scheme to launder Medicaid money from childrens’ health services into the First Lady’s charity.” José Javier Rodríguez, the Democratic candidate for attorney general, said of Uthmeier: “He’s a criminal who should resign. He should come clean and turn himself in.”

Even some Republicans have expressed concern. Sen. Rick Scott (R-Fla.) said: “Money designated to help poor kids was diverted to political ads. Florida families deserve accountability, not more finger pointing in Tallahassee.” Former Republican U.S. Rep. Matt Gaetz taunted Uthmeier on social media, noting that “misappropriated funds ended up in Uthmeier’s PAC.”

Administration Response

DeSantis has dismissed the report’s findings, calling the leak “the only crime that was apparent.” At a news conference Thursday, he insisted “there was no diversion of any Medicaid funds” and described the settlement as “legally sound” and “appropriate.”

Uthmeier called the controversy a “hoax” and a “politically motivated witch hunt,” while Moody said her office “had no knowledge of how funds would be spent” by Hope Florida. The Tampa Bay Times reported that both Uthmeier and Moody face their first election in November.

The grand jury investigation, which began in 2025, likely derailed a potential gubernatorial run by Casey DeSantis in 2026, according to political insiders cited by The Guardian. The Cook Political Report shifted the Florida governor’s race from “Solid Republican” to “Likely Republican” on August 27.

Key Promotions and Questions

Several officials involved in the settlement have since been promoted. Uthmeier went from chief of staff to attorney general. Moody was appointed to the U.S. Senate. Jason Weida, the AHCA secretary who signed the settlement, is now DeSantis’ chief of staff. John Guard, who signed the settlement agreement, was appointed to a state appeals court. Andrew Sheeran, AHCA’s general counsel, was appointed to a circuit judge position.

The grand jury recommended the Florida Legislature enact laws requiring all state settlement monies be deposited into the General Fund and requiring tracking of taxpayer funds used by third-party groups. The Florida House unanimously passed HB 593 to increase oversight, but the measure died in the Senate.

What’s Next

As the November midterm elections approach, the Hope Florida scandal has become a central issue in Florida’s political landscape. Democrats face significant obstacles—a 1.5 million voter registration deficit and a massive fundraising gap—but the leaked report has given them a powerful talking point.

Uthmeier and Moody are both seeking their first election to their current positions. The grand jury’s findings, while not resulting in criminal charges, have raised serious questions about accountability and transparency in the DeSantis administration that are unlikely to fade before voters head to the polls.

The grand jury itself offered a stark assessment: “While we can’t prove who is responsible, we can plainly see that taxpayer money was misused for political purposes and we would like to see changes made to prevent this from happening again.” Whether those changes come remains an open question as Florida voters prepare to render their own judgment.