A Florida grand jury has determined that the administration of Governor Ron DeSantis misappropriated $10 million in public funds by redirecting money from a state Medicaid settlement to a charity linked to the governor’s wife, Casey DeSantis. The report, completed in January but only recently leaked, alleges that the funds were funneled through the Hope Florida Foundation, a fundraising arm of the first lady’s charity established in 2021, and then diverted to political committees backing the governor's campaign against a 2024 ballot measure to legalize marijuana.

Hope Florida aims to reduce reliance on public assistance by connecting families with churches and aid organizations. In 2024, the foundation received $10 million from a settlement with Centene, a Medicaid contractor that had overbilled the state. According to the grand jury report, this payment was redirected to “dark money” groups—nonprofit political entities that do not disclose detailed donor information—which then funneled the majority of the funds to Keep Florida Clean, a political action committee opposing marijuana legalization.

Keep Florida Clean subsequently distributed $10.5 million to the Republican Party of Florida and $1.1 million to the Florida Freedom Fund, Governor DeSantis's political action committee, both of which actively campaigned against the marijuana amendment. Despite broad voter support, the measure failed to secure the 60 percent threshold required for passage.

The grand jury described the transactions as part of a “sophisticated scheme” to use taxpayer money for political purposes. However, the panel did not find sufficient evidence to recommend criminal charges. Witnesses reportedly could not recall who initially directed the $10 million payment to the Hope Florida Foundation, and no individual was identified as responsible for the diversion of funds.

Key figures involved in the transactions include James Uthmeier, DeSantis’s then-chief of staff and current Florida attorney general, and Ashley Moody, former state attorney general and now a U.S. senator. Both were appointed by DeSantis and have denied any wrongdoing. Moody’s spokesperson stated that neither the state attorney general’s office nor Moody were aware of how the settlement funds would be used, dismissing any suggestion of impropriety as misleading.

Governor DeSantis called the grand jury’s finding “a lie” and condemned the leak of the report as a criminal act. Uthmeier described the investigation as a “hoax” and implied without evidence that political opponents orchestrated the leak. Democratic candidates, including Florida gubernatorial nominee David Jolly, have called for renewed investigations and the resignation of officials involved.

The investigation was led by Democratic state attorney Jack Campbell of Leon County, who has declined to comment on the report citing its confidential status. Experts familiar with public corruption cases noted that proving criminal intent in such circumstances can be challenging, especially when government lawyers have approved transactions.

The controversy has cast a shadow over the Hope Florida initiative, which Casey DeSantis had promoted as a core part of her public platform and a potential springboard for future political ambitions. The report’s release has intensified scrutiny of the administration’s handling of the Medicaid settlement funds and the links between charitable and political operations in Florida.