Amidst the Hope Florida Dispute — Implications for the DeSantises’ Political Prospects

Here’s a comprehensive overview of the scandal and its impact on the lame-duck governor and his wife.

Amidst the Hope Florida Dispute — Implications for the DeSantises’ Political Prospects
TALLAHASSEE, Florida — Hope Florida was envisioned as a cornerstone of Ron and Casey DeSantis’ strategy to bolster the governor’s conservative legacy and enhance their political aspirations. However, the community-based welfare initiative has ignited a fierce intraparty conflict that jeopardizes their political ambitions.

Top Republican lawmakers previously praised the assistance project, led by first lady Casey DeSantis, as a semi-private alternative to expensive federal and state welfare programs. Yet, skepticism has emerged among state House and Senate leaders, who are hesitant to solidify the initiative into state law due to controversy surrounding a $10 million donation. This funding has sparked allegations of money laundering and fraud, primarily from within Republican circles, leading to growing discontent with the DeSantises and a noticeable rift between the governor and GOP leaders who once viewed him as a guiding figure.

Here’s an overview of the Hope Florida controversy and its implications for the DeSantises as they navigate this crisis.

What is Hope Florida?
The program aims to link eligible residents with churches and charities throughout Florida that provide alternative services to cash assistance programs. It also allocates cash grants to organizations supporting these initiatives. The logistics are managed by the state Department of Children and Families, which also established a nonprofit foundation to facilitate fundraising and grants.

Why does it matter?
Republicans regarded Hope Florida as a cost-effective substitute for programs like the federally regulated Supplemental Nutrition Assistance Program. However, concerns arose within the state House earlier this year when the project struggled to furnish basic financial records. This prompted an inquiry that uncovered a controversial $10 million donation made to the Hope Florida Foundation in September, stemming from an unrelated settlement agreement between the state’s Medicaid regulator and a Medicaid contractor accused of inflating prescription drug costs.

The $10 million donation subsequently revealed two $5 million grants awarded to organizations lobbying against a defeated adult recreational marijuana ballot measure in November.

What’s next?
Now, state House leaders are urging Hope Florida to reclaim the two $5 million grants and deposit those funds into a state bank account. Senate President Ben Albritton is advocating for the Hope Florida Foundation to implement protocols to prevent future issues. Financial concerns initially surfaced when House staffers evaluated a bill that aimed to enshrine Hope Florida in state law. However, the uncertainty surrounding the $10 million has led to a delay of the measure until next year's legislative session.

“The mission of Hope Florida is great,” Albritton stated last week. “If we can learn where there are some places where things could have been done better, more transparently, can we think about building processes around that so that we don’t detract from the mission but hold them more accountable?”

Albritton indicated that the Senate would likely revisit the Hope Florida bill next year, possibly with stipulations regarding the Foundation's operational conduct.

What about the fighting?
Public outcry regarding the $10 million donation has exacerbated tensions between Ron DeSantis and House Speaker Daniel Perez, leading the governor to allege that the GOP-led chamber is colluding with Democrats to undermine the initiative. With less than two years remaining in his term, DeSantis is striving to solidify his conservative legacy while potentially eyeing a second presidential run. In this context, Casey DeSantis is also seen as gearing up for her own gubernatorial campaign next year, prompting Gov. DeSantis to accuse Perez and other House leaders of playing politics in the lead-up to the election.

“That’s just because people know this is effective — they are threatened by this model,” Ron DeSantis remarked about the recent criticism of Hope Florida during a news conference last week. “And shouldn’t we as Floridians put aside political agendas and embrace things that have offered people hope?”

Who are the other key players?
The investigation into Hope Florida’s finances is being led by state Rep. Alex Andrade, chair of the state House Health Care Budget Subcommittee. He believes the Hope Florida board accepted the $10 million donation based on the advice of its legal counsel, Jeff Aaron. Aaron also guided the board regarding a $5 million grant awarded to a rehabilitation organization and the second $5 million grant aimed at opposing Amendment 3.

Andrade posits that the $10 million donation, which was part of a larger $67 million settlement involving the Centene Corp., and the two subsequent grants were orchestrated by former DeSantis chief of staff James Uthmeier prior to his appointment as state attorney general.

Andrade has gathered testimony from board members and state officials over the past month and amassed hundreds of records. During a recent committee meeting, he accused Aaron and Uthmeier of engaging in money laundering and wire fraud, clarifying that he would not make such allegations publicly without supporting evidence.

“It is readily apparent that a culture of neglect, incompetence, and entitlement exists within the halls of the governor’s office at this time,” Andrade asserted. “When the executive exhibits no care or concern for the misuse of taxpayer dollars, we as the Legislature have an obligation to everyday Floridians to be even more vigilant.”

What about the $10 million?
The Hope Florida Foundation received a $10 million donation from Centene Corp. as part of a $67 million settlement agreement with the state Agency for Health Care Administration. Centene, the largest Medicaid managed care operator in the U.S., settled claims regarding its former pharmacy benefit manager accused of inflating drug costs.

Centene agreed to pay AHCA $57 million to recover overpaid claims and an additional $10 million to cover further costs, which were sent directly to the Hope Florida Foundation in late September. The company has asserted that the settlement was structured by the state attorney general’s office before Uthmeier's departure from the governor’s office.

The foundation accepted the donation in a meeting convened in October after consulting with Aaron, who had just begun serving as counsel. Aaron had previously advised the board's CEO, Joshua Hay, to utilize half of the Centene settlement to fund a grant for the chamber's campaign against Amendment 3.

“It was Jeff Aaron, the board’s attorney, who informed [Hay] before their Oct. 14 meeting that this grant was ‘deemed beneficial to the Governor’s office,’ and who assured him that this should be done,” Andrade explained during a meeting last week. He further claims that Aaron directed Hay to approve a second $5 million grant to Save Our Society From Drugs without full board approval.

What about the grants?
Andrade’s committee has collected extensive records, including text exchanges among Uthmeier, Aaron, Florida Chamber of Commerce CEO Mark Wilson, and Save Our Society From Drugs Executive Director Amy Ronshausen. Andrade surmises that the chamber’s anti-Amendment 3 campaign utilized the $5 million Hope Florida grant to contribute $3.75 million to another anti-marijuana committee, Keep Florida Clean, chaired by Uthmeier. Likewise, Save Our Society From Drugs leveraged its grant to donate an additional $4.7 million to Keep Florida Clean.

“These amounts far exceed the Hope Florida Foundation’s permitted limits on expenditures for lobbying or campaign activities,” Andrade noted.

Uthmeier has denied any involvement in the settlement between AHCA and Centene, defending the two $5 million grants as serving purposes that promote family safety. In response to inquiries regarding comments, Uthmeier’s spokesperson pointed to social media posts accusing Andrade of targeting Hope Florida on behalf of the state's largest medical marijuana company, which heavily invested in Amendment 3.

Andrade concluded his most recent committee meeting after Wilson, Ronshausen, and Aaron declined to participate in the testimony. Following the meeting, Aaron posted a message on X announcing his intention to file a defamation lawsuit and a complaint with the Florida Bar against Andrade. Aaron has not responded to multiple requests for comment.

The Centene settlement has raised questions about whether the $67 million included state and federal Medicaid funds. A representative from the U.S. Centers for Medicare and Medicaid Services directed inquiries to the U.S. Department of Justice, which has not yet responded to recent requests. A spokesperson for Uthmeier has denied that Medicaid dollars were involved in the grants.

Will we hear more about Hope Florida?
Despite the impending end of Florida's 60-day legislative session, Andrade has indicated that his investigation into Hope Florida will persist into the next year.

Committee meetings for next year’s legislative session are slated to commence in September.

“I wouldn’t say these things publicly if they weren’t true,” Andrade told reporters after last week’s meeting. “I’ll come with policy changes and likely budget changes to prevent this type of public corruption from happening in the future.”

Jessica Kline for TROIB News