A Leon County grand jury has determined that the DeSantis administration redirected $10 million intended for Florida's Healthy Kids healthcare program to political activities, with $8.5 million ultimately funding the campaign against Amendment 3, the state's failed marijuana legalization measure.
The grand jury's report describes the transfer as "part of a sophisticated scheme to fund political activities," but stopped short of filing criminal charges. According to the findings, no witness would identify who authorized the decision to move the funds.
The money was originally allocated to the Healthy Kids Corporation, a state-funded program that provides health insurance coverage to children in low-income families. Instead of reaching its intended recipients, the bulk of those dollars ended up supporting Keep Florida Clean, the political committee that spent heavily to defeat Amendment 3 in November's election.
The Political Fallout
The controversy has created unusual political divisions within Florida's Republican leadership. Both Chief of Staff James Uthmeier and Attorney General Ashley Moody, who appear on the November ballot, now face scrutiny over the fund transfers. Even prominent Republicans like Senator Rick Scott have publicly criticized the administration's handling of the situation.
Amendment 3, which would have legalized recreational marijuana for adults 21 and older, failed to reach the 60% threshold required for constitutional amendments in Florida. The measure received 56% support despite facing opposition campaigns funded through various sources, including what the grand jury now characterizes as misappropriated state funds.
The cannabis industry had invested heavily in Amendment 3, with major multi-state operators contributing tens of millions to the Smart & Safe Florida campaign. Trulieve, Florida's largest medical marijuana operator, alone spent over $140 million supporting the measure.
Questions Without Answers
The grand jury's inability to identify who authorized the fund transfer highlights the investigative challenges. Without witness cooperation on the chain of command, prosecutors lacked sufficient evidence to pursue criminal charges, even as the panel concluded the money was improperly diverted.
Florida's medical marijuana program, operational since 2016, serves over 800,000 registered patients. The state has issued licenses to roughly two dozen operators, creating a market analysts estimate at $2 billion annually. Amendment 3's defeat means Florida will maintain its medical-only framework for the foreseeable future.
The Healthy Kids Corporation, meanwhile, provides coverage to approximately 200,000 children across Florida. The program relies on a combination of state appropriations, federal matching funds, and family premiums to operate.
What Happens Next
The grand jury's findings arrive as both Uthmeier and Moody face voters in November elections. Neither has publicly commented on the report's conclusions about the fund transfers.
State legislative leaders have not yet indicated whether they plan additional investigations or policy changes to prevent similar transfers. The report provides no timeline for when the $10 million might be returned to the Healthy Kids program, or whether replacement funding will be allocated.
For Florida's cannabis reform advocates, the grand jury findings add another layer to their November defeat. The revelation that public funds intended for children's healthcare helped finance opposition to legalization will likely fuel arguments about the state's approach to marijuana policy.
The Keep Florida Clean committee has not responded to questions about whether it will return the funds or how much of the $8.5 million it spent on anti-Amendment 3 activities.
This article is based on original reporting by hightimes.com.
