Two Democratic Members of Congress from Florida have asked the Federal Government to investigate what is described as a “potentially illegal diversion” by a group that has ties with Gov. Ron DeSantis (R). DeSantis fought vehemently against an initiative that was put forward by citizens to legalize marijuana for adults.
Kathy Castor and Darren Soto of Congress sent a request on Thursday in a letter to Mehmet OZ, administrator of Centers for Medicare and Medicaid Services and inspector general of HHS, requesting an official investigation of Medicaid fraud.
Two lawmakers wrote: “The diversion is Medicaid dollars must be investigated immediately.” These are funds that belong to the state’s taxpayers and should be used to help citizens who depend on Medicaid. This includes children, women pregnant, people with disabilities, or those receiving long-term care.
Both lawmakers are members of the House Committee that oversees Medicaid. They stressed how Congress “is very focused on waste fraud and misappropriation of Medicaid dollars.”
They wrote that “any unlawful diversion in Florida of Medicaid dollars” means the state will be less able provide services for our neighbors and providers who depend on Medicaid.
It follows accusations that an improper $10 million donation was made from a settlement of a state lawsuit to the Hope Florida Foundation. This foundation sent the money later to two non-profit political organizations, who then donated $8.5 to a campaign against Amendment 3 (the proposed ballot measure for marijuana legalization).
The Hope Florida Foundation, founded by Florida’s First Lady Casey DeSantis (the governor’s spouse), is a notable example.
The lawmakers say that “On October 17 Secure Florida’s Future gave $2 million to Keep Florida Clean Inc. a Political Action Committee, controlled by James Uthmeier’s former chief of staff for Governor DeSantis. This PAC was formed to fight Amendment 3.” “Governor DeSantis was strongly against Amendment 3.” Secure Florida Future sent Keep Florida Clean Inc. another $1.75M a couple of days later.”
“On October 22, the Hope Florida Foundation wired $5 million to the 501(c)4 nonprofit Save Our Society from Drugs that proposed spending the ‘grant’ on ‘developing and implementing strategies that directly address the substance use crisis facing our communities,'” it continues, detailing the alleged impropriety. Save Our Society from Drugs made a donation of $1.6 million the next day to Keep Florida Clean Inc.
While there may be limited financial disclosure obligations for 501(c4)4 organizations, lawmakers noted that records appear to indicate that a total of $8.5 million of the Centene settlement from AHCA has been transferred by the Hope Florida Foundation, Inc. PAC to Keep Florida Clean, Inc. PAC, a PAC focused on Amendment 3, which also provided funding to Republican Party of Florida, Florida Freedom Fund and other PACs.
They pointed out that “Hope Florida raised just about $2 million in its three-year existence but, all at once, it received $10 million through a Medicaid settlement. This money was then immediately channeled to a PAC run by the Chief of Staff of the Governor.”
First, reporters from the Miami Herald/Tampa Bay Times uncovered these financial transactions. A panel of lawmakers then began an investigation. The investigation ended without any concrete action last month, and the chair of the panel, Alex Andrade, a state representative (R), said that any charges would be decided by the U.S. Department of Justice.
Andrade had described the alleged funding activity as potential conspiracy to commit money laundering and wire fraud, but later said that “the best avenue is probably a federal investigation because…these were Medicaid dollars.”
Castor & Soto wrote in a new letter, that it appears that sending Medicaid money “to charitable organizations and political groups” violates federal law. This includes 18 U.S.C. It is illegal to knowingly commit or try a fraud against a program that provides health benefits or tries to obtain money through it. Two or more individuals agreeing to commit fraud against the United States is punishable under 18 U.S.C.It may also be a violation of other statutes, regulations and laws.
A press release from Castor’s office emphasized that during a recent congressional hearing, “Republicans repeatedly claimed…that they were concerned about waste, fraud and abuse in Medicaid.”
The release states that “Castor & Soto have now pointed to a tangible example of fraud & abuse” and “while calling for an investigation to be conducted immediately into the inappropriate diverting of taxpayer money to an unrelated Political Action Committee.”
Oz, the recipient of this letter, has been one of its most pro-cannabis officials. He has urged audiences in recent years to embrace therapeutic cannabis, and pushed for policy reforms around it.
“We should change our policies on marijuana completely.” In a 2019 interview, he called cannabis “one the most underutilized tools in America.”
DeSantis signed into law a comprehensive agriculture bill in Florida this week, which includes, amongst other provisions, an expanded prohibition of the spores from psychedelic mushroom.
The psychedelic mushroom spore ban is just one provision of the roughly 150-page agriculture bill, which also contains a new ban on local governments from adding fluoride to public drinking water—an issue that dominated debate as the proposal made its way through the legislature.
The successful enactment of the psychedelic mushroom spore ban into law comes as several measures to expand medical cannabis access died in the Florida legislature this session. Lawmakers also failed to advance a proposal to restrict intoxicating hemp products to enactment this year.
DeSantis also recently signed a separate bill into law will create new hurdles for advocates aiming to put ballot initiatives before voters—including, potentially, the renewed effort to legalize marijuana in the state.
The law, among other things, requires supporters to post a bond of $1,000,000 before they begin collecting signatures, forbids non-citizens and out-of state petitioners, and limits the time period during which the signatures can be presented to the election officials.
Some critics have claimed that the changes would make it more difficult for Floridians have their voice heard. In order to get a Medicaid expansion measure approved in Florida, one group has already filed a lawsuit against the DeSantis government.
The new obstacles to placing a proposal on the statewide ballot come on the heels of two contentious constitutional amendments that went before voters last year, including one—Amendment 3—that would have legalized marijuana for adults 21 and older, and another on abortion rights.
The campaign for the marijuana measure, Smart & Safe Florida, took in more than $150 million in campaign funds—with most from large cannabis companies such as Trulieve, a multi-state operator that contributed tens of millions of dollars.
It also clashed with DeSantis as well as the state Republican Party, the latter of which Smart & Safe Florida later sued for allegedly deceiving voters about the measure.
The cannabis campaign recently joined organizations focused on other issues in litigation against the new ballot restrictions.
After Amendment 3 last year failed to win the 60 percent voter support needed to pass a constitutional amendment, Smart & Safe Florida is now aiming to put a revised legalization proposal on the 2026 state ballot.
Under the new law, signatures collected before enactment would not be subjected to the revised restrictions. Smart & Safe Florida has so far submitted just under, the 220,016 valid signatures needed to trigger a judicial and financial impact review of the proposal.
The Florida Division of Elections reports that a total of 880062 valid signed statewide is needed for 2026 to be on the ballot.
Meanwhile in Florida, state elections officials recently sent a cease-and-desist letter to Smart & Safe Florida campaign, alleging that the group has “committed multiple election law violations.”
The Office of Election Crimes and Security (OECS)—part of Florida’s Department of State—also fined Smart & Safe Florida more than $120,000 for submitting completed petitions more than 30 days after they were signed.
A “potential criminal inquiry” was initiated by the Florida Department of Law Enforcement.
A representative of the campaign told MEDCAN24 that it had confidence in the election process, and intended to challenge the claim by the state that it broke the electoral law.
The statement states that “the claims appear to be an intentional effort to prevent the citizens of Florida from expressing their support for a citizen driven amendment.” We stand behind the process, and we had our legal counsel review all communications and forms before mailing.
The new GOP bills would block the use of federal welfare funds at marijuana dispensaries