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House Democrats ask IRS to examine $10 million that passed through Hope Florida

Florida House Democratic leaders want the IRS to review whether three tax-exempt groups properly handled Medicaid settlement money a grand jury called misappropriated; state officials have said no laws were broken.

Tobias Oakley

October 3, 20262 min read

Capitol, letter and money - illustration, Jake Team LLC

Democratic leaders in the Florida House have asked the Internal Revenue Service to look into how three tax-exempt organizations handled $10 million from a 2024 Medicaid settlement, money that later helped fund a campaign against a marijuana ballot measure.

House Democratic Leader Fentrice Driskell of Tampa and state Rep. Kelly Skidmore of Boca Raton sent the letter this week to IRS Chief Executive Officer Frank J. Bisignano.

They ask the agency to determine whether the Hope Florida Foundation, a 501(c)(3) charity, and two 501(c)(4) social welfare groups, Secure Florida's Future and Save Our Society From Drugs, followed federal limits on political activity and reported the money accurately, and to "assess any taxes owed as a result of the ultimate use of the funds."

"We refuse to lift our foot off the gas when it comes to Hope Florida and the abuses of our taxpayer dollars from state officials at the highest levels," Driskell said, according to WUSF.

How the money moved

The $10 million came out of a September 2024 settlement between the state and Medicaid contractor Centene over overbilling. It was sent to the Hope Florida Foundation, the charitable arm of an initiative championed by First Lady Casey DeSantis.

Within weeks, the foundation granted $5 million to each of the two social welfare groups, which then sent money to Keep Florida Clean, a political committee then chaired by James Uthmeier, the governor's chief of staff at the time and now Florida's attorney general. The committee opposed Amendment 3, the 2024 proposal to legalize recreational marijuana, which Gov. Ron DeSantis also opposed.

A Leon County grand jury that finished its work in January concluded the money was "misappropriated" and used for political purposes, but found "insufficient evidence to charge anyone criminally." Its sealed report became public in August.

The other side

State officials have rejected the Democrats' account. DeSantis has said no laws were broken and that whoever leaked the sealed grand jury report would face consequences. Uthmeier has called the renewed attention "a politically motivated hoax."

U.S. Sen. Ashley Moody, who was attorney general when the settlement was approved, has said her office was one of several agencies that signed off on it and had no knowledge of how the money would be spent. No response from the foundation or the two social welfare groups appeared in coverage of the letter.

Separately, the IRS Whistleblower Office acknowledged in May a claim about the same grants filed by state Rep. Alex Andrade, a Pensacola Republican. An acknowledgment is not a finding, and no one has been charged.

Sources

wusf.org

westorlandonews.com

wlrn.org

Fortune

en.wikipedia.org

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Tobias Oakley

Tobias Oakley writes about community life, schools, public safety, and local events in Winter Springs.

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