U.S. Sen. Ashley Moody approved the diversion of $10 million in taxpayer funds from a Medicaid settlement to the Hope Florida Foundation while serving as Florida’s attorney general, a decision that has drawn renewed scrutiny as she runs for election in November 2026.
The $10 million originated from a $67 million Medicaid settlement with health care contractor Centene, money that was originally earmarked to expand health care for children in Florida. But instead of reaching its intended purpose, the funds were transferred to Hope Florida—a charity founded by First Lady Casey DeSantis—and then quickly diverted to political action committees, according to reporting by Florida Today and CBS Miami.
One of those committees was controlled by Gov. Ron DeSantis’ Chief of Staff James Uthmeier. The money was used to finance campaigns against two 2024 ballot initiatives: Amendment 3, which would have legalized marijuana, and Amendment 4, which would have restored abortion rights. Amendment 3 failed by a narrow margin, garnering 56 percent of the vote—just short of the 60 percent needed to pass.
The settlement itself had a troubled history. In 2020, an Alabama law firm, Liston and Deas, discovered that Centene had been overbilling states for prescription drugs under Medicaid and began negotiating settlements with states’ attorneys general offices. The firm calculated Florida was owed $67 million and drafted a settlement agreement accordingly. But in 2022, Moody, then serving as Florida’s attorney general, fired the firm and said the state would represent itself. For the next two years, Florida took no action on the settlement, even as 20 other states, including Ohio, Indiana, and Arkansas, successfully resolved their claims with Centene.
In September 2024—less than six weeks before the November election—Florida suddenly renewed interest in the settlement. This time, the state proposed a significant change: instead of $67 million being returned to Florida, it wanted only $57 million returned to the state and $10 million sent to the Hope Florida Foundation, a charity Centene’s lawyers said they knew nothing about. Emails obtained by the Miami Herald and Tampa Bay Times show Centene’s lawyers grew nervous about this arrangement and repeatedly insisted the Florida attorney general be included in the settlement agreement. John Guard, Moody’s chief deputy, reviewed the settlement with Moody but kept removing references to the attorney general from draft documents.
Guard ultimately signed the settlement on behalf of Moody, allowing the $10 million transfer to proceed. Within days, the entire amount was transferred from Hope Florida to the political action committees. According to CBS Miami, the attorney general’s office typically provides guidance requiring safeguards and oversight when state funds are diverted to outside organizations—protections that were notably absent from the Hope Florida arrangement.
The diversion prompted a grand jury investigation in Leon County, which opened in May 2025. No criminal charges were brought, but sources familiar with the case indicate the grand jury issued a report detailing its findings and concerns. Under Florida law, the report should have been released within 15 days unless someone named in it requested suppression. The report’s fate remains unclear, caught up in secret court proceedings. The Florida Center for Government Accountability has sought to intervene in the case to gain access to the report or argue for its public release.
Moody has remained silent on the matter. CBS Miami attempted to interview her at a Republican Party event and later submitted written questions to her office and campaign about her knowledge of the political use of the funds, whether she consulted with the governor’s office, and whether she filed an objection to the grand jury report’s release. None of these requests received a response. Republican State Rep. Alex Andrade, who led a House inquiry into Hope Florida, said he attempted to interview Moody during his investigation but she never responded.
The scandal has become a focal point in the 2026 Senate race. Moody faces two Democratic primary winners—State Rep. Angie Nixon and retired Lt. Col. Alex Vindman—in the general election. A July 2026 University of North Florida poll showed Moody leading Nixon by 8 points and Vindman by 10 points. Yet the Hope Florida issue continues to surface. When DeSantis appointed Moody to the Senate in January 2025 after Marco Rubio became Secretary of State, he cited her opposition to the ballot amendments. “She was also a staunch opponent and helped us defeat Amendments 3 and 4 in the most recent November election,” he said. Several officials involved in the Hope Florida arrangement received promotions: Guard was later appointed to the state’s Second District Court of Appeals, and Uthmeier was appointed Florida attorney general.
Florida Democratic Chair Nikki Fried has called Moody corrupt for her silence on the matter. “When you refuse to stand up for what is right and bend a knee to power, you have no business representing people in any office,” Fried posted on social media. State Rep. Angie Nixon has been more direct, calling Moody “basically a thief” for approving the diversion. The grand jury report’s potential release could intensify scrutiny as the November election approaches.
Sources
- Florida Today — Moody’s approval of the $10 million diversion, the funds’ political use, and her silence on questions about the arrangement
- CBS Miami — Detailed timeline of the settlement negotiations, the political action committee use, Moody’s refusal to answer questions, and expert commentary from State Rep. Alex Andrade on missing safeguards
- University of North Florida Public Opinion Research Lab — July 2026 polling showing Moody’s lead in the Senate race
- Ballotpedia — Moody’s appointment to the Senate and the primary election date
