A state grand jury found that the DeSantis administration misappropriated $10 million in taxpayer money by diverting it from a Medicaid settlement to the Hope Florida Foundation. The report, obtained by CBS News Miami, claims the transfer was part of a scheme to fund political activities. The funds, intended for health insurance for low-income children, were reportedly funneled through various organizations before reaching two political action committees and the Republican Party of Florida, which used them in 2024 to oppose Amendment 3, a citizen initiative to legalize marijuana in Florida.
The grand jury concluded that while the funds were misappropriated, there was insufficient evidence to charge anyone criminally. The report stated, "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." It emphasized the need for changes to prevent future misuse of taxpayer funds.
The report identified James Uthmeier, the state's current attorney general, as a key figure in the transfer, noting his involvement as the Governor's Chief of Staff at the time. The grand jury indicated that Uthmeier's political action committee, Keep Florida Clean, was the primary recipient of the majority of the misappropriated funds.
Ashley Moody, the attorney general at the time, was said to have been aware of the plans to divert the funds and authorized her former chief deputy, John Guard, to sign the settlement agreement. Guard stated that the settlement was handled in the ordinary course by the Department of Legal Affairs and declined to comment further due to his position as a sitting judge.
Moody, who was appointed to the U.S. Senate in 2025 by DeSantis, has not commented on the matter, while DeSantis has avoided questions regarding the diversion, labeling the situation a "hoax." The grand jury report, filed under seal on January 28, has drawn significant interest, with calls for its release from Democratic officials and resistance from Republican leaders. A source indicated that individuals named in the report, including Uthmeier, have been obstructing its release through court proceedings.
Uthmeier, who is also up for election in November, has not confirmed whether he is blocking the report's release, citing the confidentiality of grand jury proceedings. Earlier, he dismissed the situation as a "big nothingburger" and asserted that he has not been involved in any criminal activity. Despite the administration's claims of no wrongdoing, the grand jury report indicates significant misconduct involving multiple state agencies and outside groups aligned with the governor, suggesting that officials exploited the chaos from two hurricanes to obscure their actions.