A leaked grand jury report detailing how the DeSantis administration "misappropriated" millions of dollars from a Medicaid settlement for political purposes has shaken up the election.
In Florida's governor's race, both major-party candidates say reform is needed.
"We are going to work with the Legislature. We're going to make the necessary law changes so that this does not occur again," said U.S. Rep. Byron Donalds on Monday, after touring Tampa Electric’s new operations center in Tampa.
ALSO READ: David Jolly: First lady Casey DeSantis, Hope Florida were 'used' in a 'sinister plan'
The settlement money went partly to the Hope Florida Foundation, which is tied to a charity effort of First Lady Casey DeSantis. From there, it ultimately ended up going toward helping defeat the 2024 recreational marijuana ballot proposal.
In the CBS News Miami-obtained report, the grand jury said it didn't have enough evidence to issue indictments. It said no one would take responsibility or say they remembered who made the decision.
But it still gave a scathing critique of Gov. Ron DeSantis' administration: "While we can't prove who is responsible," it read, "we can plainly see that taxpayer money was misused for political purposes, and we would like to see changes made to prevent this from happening again."
The report recommends money received by the state go into the general revenue fund, where it can be reviewed by lawmakers. It also calls for guardrails on how outside groups spend taxpayer money, like "ensuring usage of said funds are tracked and monitored, and providing consequences for violation of these mandates."
ALSO READ: Democrats seize on leaked Hope Florida report showing 'misappropriated' funds
Democratic gubernatorial nominee and former congressman David Jolly agrees with the reforms.
"The Legislature should pick that up right away," Jolly said. "I think the governor should be saying, 'You know what? These are good recommendations.' Instead, they're blaming the leak."
Gov. DeSantis emphasized how there were no indictments and said the only person who broke the law was the report leaker.
Jolly also said that, as governor, he would investigate the situation more.
A bombshell report from CBS Miami revealed a Grand Jury found the DeSantis administration led a “sophisticated scheme to fund political activities” with $10 million in taxpayer money meant for children’s health care.
— David Jolly (@davidjollyfl) August 27, 2026
It’s clear from the Grand Jury report that our current… pic.twitter.com/yT8j6HPLUN
But Donalds splits with Jolly on that.
Donalds called the report's findings "very concerning" but said there have already been investigations.
"Now it's about are you going to change the law or not to make sure this doesn't happen again," he said.
"I think what's most important right now is making sure that we retool," he said. "Whether it's signing authority on contracts like this, distribution of funds, making sure the Legislature is keenly aware of how these dollars are being moved. And not just the Legislature, but the people of Florida as well."
The report named two prominent Republicans running for office this November.
The grand jury said testimony shows Florida Attorney General James Uthmeier, then DeSantis' chief of staff, was involved in directing the money.
Uthmeier called any allegations of wrongdoing a hoax and said it would be illegal to discuss the grand jury findings. Last week, he even suggested a reporter asking him about the confidential report was breaking the law.
The leaked report also detailed how former Attorney General Ashley Moody's office signed off on the settlement. Now a U.S. senator, Moody pushed back against critiques saying she was involved. She said another agency negotiated the settlement and that her office didn't know where the money would ultimately go.
There have been numerous reports that misrepresent the facts surrounding an AHCA settlement agreement that has been available to the public for two years. Understanding this is political season and there may be a tendency to misrepresent the facts, it is important to clarify…
— Ashley Moody (@AshleyMoodyFL) August 27, 2026
On Monday, a reporter asked Donalds if this is a campaign issue, especially as he campaigns alongside Moody and Uthmeier.
Donalds said no.
"Campaigns are not just about one issue; they're about a plethora of issues," he said. "So I would say that the people of Florida, first and foremost, they still want it to be a state based upon common sense and conservative policy."
WUSF's Steve Newborn contributed to this reporting.
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This story was produced by WUSF as part of a statewide journalism initiative funded by the Corporation for Public Broadcasting.
