Hope Florida Foundation Chair admits ‘Mistakes were made’

The Hope Florida Foundation, a nonprofit organization tasked with fundraising for Florida First Lady Casey DeSantis’ welfare assistance initiative, has found at the center of a rapidly growing controversy.

Under oath before the House Health Care Budget Subcommittee, Foundation Chairman Joshua Hay acknowledged that “mistakes were made” with the organization’s record-keeping practices, as lawmakers continue to probe the foundation’s handling of $10 million received from Medicaid managed-care provider Centene.

The “mistakes” included not filing tax returns and lacking bylaws, meeting minutes and budgets.

“In recent weeks, the public reporting has made evident that mistakes were made. There are lapses in reporting procedures. The foundation was not provided with the staffing support necessary to ensure all matters were being quickly and appropriately handled,” Hay testified.

The Money Trail

The investigation centers on financial transactions that have raised serious concerns among lawmakers. Last fall, the Hope Florida Foundation received $10 million as part of a larger $67 million settlement between Centene, Florida’s largest Medicaid managed-care provider, and the state Agency for Health Care Administration.

After receiving these funds, the foundation promptly distributed $5 million grants each to two organizations: Florida Chamber of Commerce’s Secure Florida’s Future and Save Our Society from Drugs. These organizations then made contributions to “Keep Florida Clean,” a political committee headed by James Uthmeier, who was then Governor Ron DeSantis’ chief of staff and is now Florida’s attorney general.

The Keep Florida Clean committee actively campaigned against Amendment 3, a proposed constitutional amendment on the November ballot that would have legalized recreational marijuana use in Florida.

‘Conspiracy’ to Misuse Medicaid Funds

House Health Care Budget Chairman Alex Andrade (R-Pensacola) has taken the unusual step of requiring sworn testimony in this investigation. He has accused Uthmeier of routing Medicaid settlement money through the foundation to finance political campaign activities against Amendment 3.

“This is looking more and more like a conspiracy to use Medicaid money to pay for campaign activity,” Andrade told reporters following Tuesday’s committee meeting. The chairman indicated he plans to seek additional public records, including text messages and emails from various state agency officials, including Uthmeier himself, and did not rule out issuing a subpoena requiring the attorney general to appear before his panel.

When asked about the legality of the transactions, Andrade didn’t mince words: “Given Mr. [Uthmeier’s] involvement in the settlement and then the transfer to Hope Florida and then soliciting these grant proposals and then immediately receiving that to his PAC… That’s very much what it looks like [criminal behavior].”

DeSantis Administration Pushes Back

The DeSantis administration has chosen to attack Andrade and House GOP leaders personally. Jeremy Redfern, speaking on behalf of Attorney General Uthmeier, challenged Andrade’s motivations, accusing him of having connections to Trulieve, a medical-marijuana company that reportedly spent approximately $150 million supporting the ballot initiative.

“This is Democrat-style lawfare by a representative who is in the pocket of Big Weed,” Redfern, who is Uthmeier’s communications director, posted on social media platform X. “He’s pushing this hoax because his Canadian-traded marijuana bosses are mad they spent $150 million to have unrestricted marijuana use in public and lost.”

At a media event held at Pensacola State College while Andrade’s committee was meeting, Governor DeSantis described the investigation as “manufactured smears” against the Hope Florida program, suggesting that House leadership is “colluding with liberal media and the Democratic party in Florida” to undermine the initiative.

He claimed the attacks happen because the House is “not cutting your property taxes, they’re not fixing the condo crisis, they’re not doing the things that voters want them to do.”

The governor further criticized House members for not taking the time to understand the program: “How someone will come from Iowa to learn about Hope Florida. And you won’t even walk down the hall and ask questions about it. You don’t even know what you’re talking about. You don’t even understand what the program is actually doing.”

Some DeSantis supporters – at the PSC event and elsewhere – have suggested the governor views the probe as politically motivated to potentially derail his wife’s political future.

Web of Connections and Conflicts

The legislative inquiry has revealed a complex network of connections within the governor’s inner circle. Hay testified that he hired Jeff Aaron as the foundation’s general counsel after being introduced to him by David Dewhirst, who is Uthmeier’s chief of staff and a former colleague from the governor’s office.

The foundation has also recently retained attorney Mohammad Jazil to address “deficiencies” in its paperwork. This revelation appeared to surprise Chairman Andrade, as Jazil also represented the Keep Florida Clean committee. Andrade said, “I have serious concerns about what might be occurring in the post-dating of documentation in the attempt to justify and cover up what actually happened,” Andrade stated.

Questions about potential conflicts of interest continue to mount. Hay’s own company, Indelible, has secured over 30 contracts totaling more than $119 million with state agencies since 2021, according to the state chief financial officer’s website. Additionally, two lobbyists serve on the foundation’s five-member board.

When asked if the foundation had a conflict-of-interest policy for board members, Hay admitted this was a “deficiency” to be addressed at an upcoming board meeting.

Missing Documentation

The foundation’s administrative practices have faced intense scrutiny. Hay admitted that the organization has failed to file required federal tax reports (known as 990s), and Department of Children and Families Secretary Taylor Hatch acknowledged confusion about responsibilities between the state agency and the foundation.

“It’s clear that there were responsibilities of the department and responsibilities of the DSO (the direct-service organization, or foundation), from what I’ve been able to gather, the DSO thought DCF was handling some things, DCF thought the DSO was handling things,” Hatch said.

Representative Allison Tant (D-Tallahassee) expressed shock at the foundation’s operational standards, stating, “I’m astonished at how the foundation operated. I’m trying to wrap my head around how this happened and how we prevent it from happening again.”

What Comes Next?

The Hope Florida Foundation is scheduled to hold a board meeting to address governance issues and correct deficiencies in documentation and reporting. However, Chairman Andrade has expressed concern that this may be an attempt to correct improper actions retroactively.

With allegations of possible criminal wrongdoing now in play, the investigation could potentially expand beyond the state legislature. When asked whether federal authorities might become involved, given that Medicaid includes federal dollars, Andrade responded that he “wouldn’t be surprised if they did get involved.”

Follow the Money: Foundation Chair admits ‘Mistakes were made’

The Money Trail

‘Conspiracy’ to Misuse Medicaid Funds

DeSantis Administration Pushes Back

Web of Connections and Conflicts

Missing Documentation

What Comes Next?

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