Florida Governor Ron DeSantis has rejected allegations that his administration misappropriated $10 million in taxpayer funds linked to a Medicaid settlement, describing the controversy as a hoax.
His comments came after CBS News Miami reported that a state grand jury had concluded that officials in his administration diverted the money to the Hope Florida Foundation as part of what the panel described as a political scheme.
Speaking on Thursday, DeSantis criticised the investigation and argued that the only wrongdoing exposed was the leaking of the sealed grand jury report.
“The only crime that was apparent was whoever leaked the grand jury report,” DeSantis said.
The grand jury report, obtained by CBS News Miami, alleged that key officials in the governor’s office moved the $10 million through several organisations before the funds eventually reached two political action committees and the Republican Party of Florida.
The money originated from a Medicaid settlement and, according to the report, was intended to benefit Florida taxpayers. The funds were subsequently used in efforts to defeat Amendment 3, a 2024 ballot initiative seeking to legalise recreational marijuana in the state.
The grand jury described the transfer as “part of a sophisticated scheme to fund political activities.”
Despite its findings, the panel said there was not enough evidence to bring criminal charges against any individual.
“Despite our finding that the money was misappropriated, we find 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.”
The grand jury added, “We recognize that this would be an impediment to criminal prosecution.”
“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,” it said.
DeSantis, however, maintained that the Medicaid settlement was lawful and denied that any funds had been improperly diverted.
“There was no diversion of any Medicaid funds,” he said. “The settlement was legally sound. It was appropriate and advanced the interests of the state.”
The grand jury disputed that position, describing the $10 million as taxpayer money that was “owed to Florida taxpayers.”
Democratic gubernatorial candidate David Jolly also criticised the administration, saying the report pointed to an organised effort to channel public funds towards political activities.
“There was an orchestrated scheme to launder state Medicaid money into a charity operated by the First Lady for the political purposes of the governor,” Jolly said.
Jolly pledged to reopen the investigation if elected governor, arguing that the circumstances surrounding the transfer warranted further scrutiny.
“I just think where you smell corruption, you pursue it,” Jolly said. “I don’t trust our sitting attorney general to do that. Clearly, he’s a subject of this investigation. I think the office of the governor should reopen a fact-finding investigation into exactly what happened.”
He also urged the Florida Legislature to implement the grand jury’s recommendations, particularly measures requiring money recovered through future Medicaid settlements to be paid directly into the state’s general revenue fund.
“I call on the legislature to consider the changes recommended to ensure that any Medicaid money that may be recovered in future settlements is directed to general revenue and cannot be laundered or misdirected as we saw in the case of Hope, Florida,” Jolly said.
Jolly further challenged Republican gubernatorial candidate Byron Donalds to support reopening the investigation. CBS News Miami said it was awaiting a response from Donalds.
