In 2024, Florida reached a $67 million settlement with Centene, a healthcare provider accused of overbilling the state’s Medicaid program. Of this amount, $10 million was allocated to the Hope Florida Foundation, an initiative associated with Florida First Lady Casey DeSantis. The foundation then reportedly transferred $8.5 million to a political action committee (PAC), Keep Florida Clean, which is leading opposition to Amendment 3—a measure that would legalize adult-use cannabis in Florida.
The PAC was managed at the time by James Uthmeier, Chief of Staff to Governor Ron DeSantis and current state Attorney General. Critics argue this movement of funds represents a deliberate redirection of public money into a partisan political campaign.
State Legislative Inquiry Ends Abruptly
A Florida House subcommittee, led by Republican Rep. Alex Andrade, launched an initial investigation into the matter. The probe was cut short in April 2025 when key witnesses refused to testify. Andrade concluded that the state legislature was unable to proceed further, citing a “culture of deception” surrounding the organizations involved. He subsequently referred the issue to federal authorities, alleging potential fraud, money laundering, and wire fraud.
Federal Lawmakers Push for Oversight
U.S. Representatives Kathy Castor and Darren Soto, both Democrats from Florida, have formally requested a federal investigation. They sent a letter to the Department of Health and Human Services (HHS) Inspector General and the Centers for Medicare and Medicaid Services (CMS), asking whether the redirection of funds violated federal statutes, including:
- 18 U.S.C. § 1347 – Health Care Fraud
- 18 U.S.C. § 371 – Conspiracy to Defraud the United States
The lawmakers emphasized that the diversion of Medicaid-related funds for political purposes undermines the integrity of public programs and compromises healthcare access for low-income residents.
Officials Deny Wrongdoing
Governor Ron DeSantis and his administration have defended the transactions, asserting that the funds were lawfully allocated to nonprofit organizations and not subject to Medicaid spending restrictions. A state Medicaid spokesperson clarified that the $10 million in question was not part of the Medicaid reimbursement system but instead came from a broader settlement, and therefore was not bound by typical federal spending rules.
Casey DeSantis’s office dismissed the controversy as a politically motivated attack on her public role and charitable initiatives.
Broader Implications
The controversy highlights growing tension between state and federal interpretations of Medicaid fund usage, especially in politically charged contexts. The involvement of nonprofits in partisan advocacy—particularly with state-directed funding—raises ethical and legal questions about the boundaries of political engagement using public or quasi-public resources.
The outcome of any federal investigation could set a precedent regarding how states use settlement funds and whether such resources can legally support ballot initiative campaigns.
Conclusion
As Florida voters prepare to decide on cannabis legalization through Amendment 3, scrutiny over the state’s financial maneuvers is intensifying. With the state legislative investigation now closed, all eyes are on federal agencies to determine whether laws were broken in the transfer and use of settlement funds.
