Press ReleaseUrgent2026-08-31

Castor, Soto Demand Federal Investigation, Accountability After Grand Jury Finds Taxpayer Dollars Were Abused for Corrupt Political Purposes

HealthcareTaxesEnvironmentTrade

Context

This press release from Representative Kathy Castor (D-FL) was published on 2026-08-31 and titled "Castor, Soto Demand Federal Investigation, Accountability After Grand Jury Finds Taxpayer Dollars Were Abused for Corrup".

Full Text

Castor, Soto Demand Federal Investigation, Accountability After Grand Jury Finds Taxpayer Dollars Were Abused for Corrupt Political Purposes

TAMPA, Fla. — U.S. Reps. Kathy Castor (FL-14) and Darren Soto (FL-09) are demanding a federal investigation and full transparency following new reporting that $10 million in taxpayer funds from a Medicaid-related settlement were misappropriated and routed through the Hope Florida Foundation, with $8.5 million ultimately flowing to political committees. In their latest letter to the U.S. Department of Health and Human Services Office of Inspector General (HHS OIG) and Centers for Medicare and Medicaid Services (CMS), Castor and Soto urged federal officials to investigate whether the diversion violated federal Medicaid law and determine who was responsible. Earlier this year, a Florida grand jury concluded that the $10 million was misappropriated “as part of a sophisticated scheme to fund political activities.” The grand jury investigation followed allegations uncovered through a Florida House Republican-led inquiry into the settlement. Castor and Soto first called for a federal investigation in May 2025 after questions emerged about Florida’s $67 million Medicaid settlement with Centene. The settlement directed $10 million to the Hope Florida Foundation. $8.5 million was then transferred through nonprofit organizations to political action committees controlled by James Uthmeier, Gov. Ron DeSantis’ then-chief of staff and now Florida Attorney General. According to the grand jury report, Uthmeier’s PAC transferred $7 million directly to the Republican Party of Florida and $1.23 million to the Florida Freedom Fund, another Uthmeier-controlled PAC. The new grand jury report also raises questions about the unusual speed and timing of the transactions. Centene was required to transfer $10 million to the Hope Florida Foundation within seven days, while being granted more than a year to repay the remaining $57 million to the State of Florida. The grand jury concluded the settlement appeared rushed because the 2024 election was only 45 days away and many Florida families were busy recovering from Hurricanes Helene and Milton. Despite concluding that taxpayer money was misappropriated for political purposes, the grand jury found insufficient evidence to bring criminal charges because officials would not identify—or said they could not remember—who made the decision to send the $10 million to Hope Florida. Castor and Soto argue that the inability to pursue state criminal charges does not end the federal government’s responsibility to determine whether Medicaid laws and regulations were violated and taxpayer dollars were misappropriated for political purposes. Read the full letter here and below. RE: Urging Transparency into and Accountability for Unlawful Diversion of Medicaid Funds in Florida Dear Inspector General Bell and Administrator Oz: On May 15, 2025, we wrote a letter urging your agencies to investigate whether the $10 million settlement scheme from Centene to the Hope Florida Foundation at the direction of the State of Florida in 2024 violated federal law and complied with the Centers for Medicare and Medicaid Services (CMS) legal and regulatory framework. Federal law requires that Medicaid proceeds be used solely for health services authorized by law and for the benefit of those served by Medicaid, but $8.5 million in funding was quickly redirected to political committees supporting a Governor DeSantis-led campaign against a ballot amendment to legalize recreational marijuana use in Florida. Recent press reports have brought new information to light regarding the settlement that we believe requires further investigation and clarity by federal agencies. Earlier this year, a grand jury in Florida concluded that the DeSantis administration misappropriated $10 million in taxpayer money to Hope Florida Foundation and that the funds “were misappropriated as part of a sophisticated scheme to fund political activities.” The inquiry followed allegations raised through a Florida House Republican-led investigation. These findings and gross abuse of taxpayer dollars demand immediate federal action. The grand jury concluded that “these funds were misappropriated as part of a sophisticated scheme to fund political activities.” The report provides important context on the timing of these financial transactions during the deadly Hurricanes Helene and Milton, and suggests the State may have taken advantage of the chaos and confusion on the ground for purely political gain while Floridians were reeling from the destruction and devastation of sequential natural disasters. The expedited nature of the movement of unusually large amounts of money moving through various entities, and the quick disbursement to their final destination during the 2024 election appears to be illegal and morally wrong. We learned several new items from the grand jury report, including an alarming money trail that funneled $8.5 million in taxpayer dollars into a political action committee (PAC) controlled by James Uthmeier, then Florida Governor Ron DeS

View original source →

Castor, Soto Demand Federal Investigation, Accountability After Grand Jury Finds Taxpayer Dollars Were Abused for Corrupt Political Purposes TAMPA, Fla. — U.S. Reps. Kathy Castor (FL-14) and Darren Soto (FL-09) are demanding a federal investigation and full transparency following new reporting that $10 million in taxpayer funds from a Medicaid-related settlement were misappropriated and routed through the Hope Florida Foundation, with $8.5 million ultimately flowing to political committees. In their latest letter to the U.S. Department of Health and Human Services Office of Inspector General (HHS OIG) and Centers for Medicare and Medicaid Services (CMS), Castor and Soto urged federal officials to investigate whether the diversion violated federal Medicaid law and determine who was responsible. Earlier this year, a Florida grand jury concluded that the $10 million was misappropriated “as part of a sophisticated scheme to fund political activities.” The grand jury investigation followed allegations uncovered through a Florida House Republican-led inquiry into the settlement. Castor and Soto first called for a federal investigation in May 2025 after questions emerged about Florida’s $67 million Medicaid settlement with Centene. The settlement directed $10 million to the Hope Florida Foundation. $8.5 million was then transferred through nonprofit organizations to political action committees controlled by James Uthmeier, Gov. Ron DeSantis’ then-chief of staff and now Florida Attorney General. According to the grand jury report, Uthmeier’s PAC transferred $7 million directly to the Republican Party of Florida and $1.23 million to the Florida Freedom Fund, another Uthmeier-controlled PAC. The new grand jury report also raises questions about the unusual speed and timing of the transactions. Centene was required to transfer $10 million to the Hope Florida Foundation within seven days, while being granted more than a year to repay the remaining $57 million to the State of Florida. The grand jury concluded the settlement appeared rushed because the 2024 election was only 45 days away and many Florida families were busy recovering from Hurricanes Helene and Milton. Despite concluding that taxpayer money was misappropriated for political purposes, the grand jury found insufficient evidence to bring criminal charges because officials would not identify—or said they could not remember—who made the decision to send the $10 million to Hope Florida. Castor and Soto argue that the inability to pursue state criminal charges does not end the federal government’s responsibility to determine whether Medicaid laws and regulations were violated and taxpayer dollars were misappropriated for political purposes. Read the full letter here and below. RE: Urging Transparency into and Accountability for Unlawful Diversion of Medicaid Funds in Florida Dear Inspector General Bell and Administrator Oz: On May 15, 2025, we wrote a letter urging your agencies to investigate whether the $10 million settlement scheme from Centene to the Hope Florida Foundation at the direction of the State of Florida in 2024 violated federal law and complied with the Centers for Medicare and Medicaid Services (CMS) legal and regulatory framework. Federal law requires that Medicaid proceeds be used solely for health services authorized by law and for the benefit of those served by Medicaid, but $8.5 million in funding was quickly redirected to political committees supporting a Governor DeSantis-led campaign against a ballot amendment to legalize recreational marijuana use in Florida. Recent press reports have brought new information to light regarding the settlement that we believe requires further investigation and clarity by federal agencies. Earlier this year, a grand jury in Florida concluded that the DeSantis administration misappropriated $10 million in taxpayer money to Hope Florida Foundation and that the funds “were misappropriated as part of a sophisticated scheme to fund political activities.” The inquiry followed allegations raised through a Florida House Republican-led investigation. These findings and gross abuse of taxpayer dollars demand immediate federal action. The grand jury concluded that “these funds were misappropriated as part of a sophisticated scheme to fund political activities.” The report provides important context on the timing of these financial transactions during the deadly Hurricanes Helene and Milton, and suggests the State may have taken advantage of the chaos and confusion on the ground for purely political gain while Floridians were reeling from the destruction and devastation of sequential natural disasters. The expedited nature of the movement of unusually large amounts of money moving through various entities, and the quick disbursement to their final destination during the 2024 election appears to be illegal and morally wrong. We learned several new items from the grand jury report, including an alarming money trail that funneled $8.5 million in taxpayer dollars into a political action committee (PAC) controlled by James Uthmeier, then Florida Governor Ron DeS