Grand Jury: DeSantis Admin Misused $10M Medicaid Funds

A Florida grand jury has concluded that Gov. Ron DeSantis’ administration “misappropriated” $10 million in taxpayer money diverted from a Medicaid settlement to a charity connected to the governor’s wife, though it declined to file criminal charges due to insufficient evidence identifying who was responsible. The findings, detailed in a sealed report obtained and published by CBS News Miami, describe what the grand jury called “a sophisticated scheme to fund political activities.”

The Money Trail

The funds originated from a $67 million settlement between Florida and Centene Corp., a healthcare giant that overbilled the state for prescription drugs under the Florida Healthy Kids program. While other states settled quickly—Ohio received $88 million, Mississippi $55 million, and California $215 million—Florida delayed for three years before suddenly resolving the dispute in September 2024, just 45 days before the election.

According to AP News, the settlement was initially structured to return the full amount to the state. But on September 12, 2024, officials altered the agreement to direct $5 million to the Hope Florida Foundation, the fundraising arm of an initiative launched by first lady Casey DeSantis. The next day, that amount was doubled to $10 million.

Centene transferred the $10 million to the Hope Florida Foundation on October 4, 2024. Within 25 days, the money was gone—split into two $5 million grants to Secure Florida’s Future and Save Our Society from Drugs, both dark-money groups. Those organizations then transferred a combined $8.5 million to Keep Florida Clean, a political action committee chaired by James Uthmeier, who was DeSantis’ chief of staff at the time.

The funds were ultimately used to oppose Amendment 3, the 2024 ballot measure that would have legalized recreational marijuana in Florida. The measure fell just short of the 60% supermajority needed to pass.

Grand Jury Findings

The grand jury concluded that the $10 million was taxpayer reimbursement, rejecting the explanation from former Agency for Health Care Administration Secretary Jason Weida that the payment was a “bonus” from Centene. The jury also found that the donation violated the spirit of Florida Statute Sections 45.062(1) and (5), which govern how state-received money must be handled.

“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 identified Uthmeier as being “in a position of authority over those involved in settling” and noted that his Keep Florida Clean PAC was the prime recipient of the funds. It also concluded that then-Attorney General Ashley Moody’s office knew of the plans to divert the money and authorized her chief deputy to sign the settlement.

Neither DeSantis, Moody, nor Uthmeier testified before the grand jury.

Political Fallout

The report’s release has ignited a political firestorm as Florida heads into the November midterm elections. Democrats have seized on the findings, with WUSF Public Media reporting that all 12 Democratic state senators called for Uthmeier and Moody to resign.

“Ten million dollars meant for sick children was diverted into a political operation,” said Nikki Fried, chair of the Florida Democratic Party. “They don’t get to shrug this off. They don’t get to call it a ‘nothingburger.’ This is blatant corruption.”

David Jolly, the Democratic nominee for governor, called for the grand jury probe to be reopened. “It’s a highly orchestrated scheme to launder Medicaid money from childrens’ health services into the First Lady’s charity, to be passed through to political committees for the governor,” Jolly said, according to FOX 35 Orlando.

Defenses and Denials

DeSantis has dismissed the controversy, saying “the only crime that was apparent was with whoever leaked the grand jury report.” He also stated, “I wasn’t involved in the settlement agreement, but I’m very happy with how everything was done.”

Uthmeier, now Florida’s attorney general and up for reelection, called the renewed interest “a politically motivated hoax.” “Nobody did anything wrong here,” he said. “There was not even probable cause to move forward.”

Moody, now a U.S. senator, said in a statement that her office “had no knowledge of how funds would be spent” by Hope Florida and characterized the criticism as misrepresenting the facts.

A Pattern of Promotions

The grand jury report has drawn renewed scrutiny to the fact that many officials involved in the settlement have since been promoted by DeSantis. Moody was appointed to the U.S. Senate in January 2025. Uthmeier was appointed attorney general in February 2025. Weida now serves as DeSantis’ chief of staff. John Guard, who signed the settlement despite expressing “reservations,” was appointed to a state appeals court. Andrew Sheeran, AHCA general counsel at the time, was appointed to a circuit judge position.

Recommendations for Reform

The grand jury recommended that the Florida Legislature enact laws requiring any money received by the state to be deposited into the General Fund, with real consequences for violations. It also called for clearer laws governing how organizations like Hope Florida can use taxpayer funds, including tracking and monitoring requirements.

“As taxpayer money,” the grand jury found, “it should have been treated as such instead of being allocated for partisan political purposes and without transparency.”

The report’s release comes at a politically sensitive time, with Uthmeier and Moody both facing reelection battles in November and the governor’s race between Jolly and Republican Byron Donalds shaping up to be competitive. As Tampa Bay Times reported, Jolly trails Donalds by about three percentage points in recent polls, and the grand jury findings could become a defining issue in the campaign’s final weeks.

What to Watch

While no criminal charges were filed, the political implications of the grand jury report are still unfolding. Jolly has pledged to launch a new investigation if elected governor, and Democrats are expected to continue pressing the issue through Election Day. The grand jury’s recommendations for legislative reform also remain pending, leaving open the question of whether Florida will adopt stricter oversight of how state-received funds are allocated.

For now, the grand jury’s conclusion stands as a stark assessment of what happened to $10 million meant for vulnerable children: “While we can’t prove who is responsible, we can plainly see that taxpayer money was misused for political purposes.”