A month and a half ago, CBS News Miami released a leaked grand jury report accusing the DeSantis administration of misappropriating $10 million in taxpayer dollars for political purposes.
It was a bombshell, seized by state Democrats to blast Republicans in a general election that could be more competitive than recent ones in an increasingly red Florida. It also raised concerns among Republicans, including U.S. Sen. Rick Scott and U.S. Rep. Byron Donalds, the GOP gubernatorial nominee.
A top official implicated by the report: DeSantis-appointed Attorney General James Uthmeier, who’s currently up for election. The report said Uthmeier, when he was DeSantis' chief of staff, was involved in directing the money.
But now a state appeals court has ordered the report expunged, removing it from the court record.
ALSO READ: Florida House Democrats want AG Uthmeier impeached. How does impeachment work?
In a sharply written decision by Judge Lance Neff, who was appointed by Gov. Ron DeSantis on March 2, 2026, the state appellate court said the report is “careless in its grammar, mistaken in its law and unfaithful to its own record.”
The grand jury had 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 its report was still scathing: "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."
It detailed how money from a Medicaid settlement went to the Hope Florida Foundation, which is tied to First Lady Casey DeSantis’ charity effort. Yet, the money ultimately went to help defeat the 2024 ballot measure to allow recreational marijuana.
ALSO READ: David Jolly: First lady Casey DeSantis, Hope Florida were 'used' in a 'sinister plan'
What does the appeals court say?
Justifying expungement, Neff said grand juries should not “declare conduct unlawful” without charges, and they shouldn’t “condemn” people without indictments.
He said the report was distributed to too many people before the leak and said it shouldn’t have been released “before those it impugns have had the opportunity Florida law guarantees to seek its repression or expungement.”
And Neff went even further than that.
For example, he also disputed that misappropriation happened, and Neff said the $10 million wasn’t taxpayer money, noting how the money went directly from Centene, a company accused of overcharging Florida’s Medicaid program, to the Hope Florida Foundation. Centene denied wrongdoing as part of the settlement.
What DeSantis, Uthmeier say
DeSantis says the decision shows the criticism thrown at his administration for the money transfer was a “hoax” and fueled by a “partisan exercise.”
“This process has now culminated in what I think is probably the biggest judicial smackdown that I have ever seen in my entire career as an elected official,” DeSantis said at a press conference last week. "All the narratives crashed and burned with this opinion."
Uthmeier joined the governor in denouncing the grand jury proceedings. He said law enforcement was looking into the report leak.
“If somebody shows a violation of law, no matter where it is, I pursue it,” Uthmeier said. “I enforce the law everywhere, from retail theft to election crimes, child predators — you name it.”
The 1st DCA eviscerated the phony narratives re: AHCA’s pre-suit settlement and the private donation to DCF’s direct support organization, the Hope foundation:
— Ron DeSantis (@RonDeSantis) October 8, 2026
1. No “misappropriation”
2. No tax dollars were used at all
3. No Medicaid money was involved with the donation
BUT,… https://t.co/5gaGECXkL9
But it’s not over
Donalds is still telling reporters he wants to work with lawmakers to pass laws to prevent similar situations in the future.
Scott used harsher wording when asked by the press, saying there should be a "thorough investigation" and the issue remains despite the expungement: "This was $10 million that was supposed to go for poor kids," he told the Tampa Bay Times.
Many Democrats share Scott's belief.
“My position is the same,” said former congressman David Jolly, the Democrat running in the gubernatorial contest, at a Monday press conference. “As governor, we will reopen a fact-finding investigation. But I do believe that José Javier Rodríguez is in a position to win the attorney general race. And should he do that, then obviously, the governor's office won't have a need to do that.”
Rodríguez, a former state senator, is the Democrat running against Uthmeier in the state attorney general’s race.
“None of the facts have changed,” he said. "Rather than rooting out corruption, my opponent is the root of corruption."
Rodríguez disputed the court’s conclusions, pointing to reporting that Florida included the $10 million when calculating how much Medicaid settlement money it owed the federal government. The DeSantis administration has said it included the money out of an "abundance of caution."
ALSO READ: Donalds and Jolly call for Hope Florida reforms after scathing grand jury report
There are other things to look out for, too.
The IRS is reviewing a Hope Florida-related whistleblower claim filed by state Rep. Alex Andrade, the Pensacola Republican who has investigated and frequently criticized the DeSantis administration for the money transfer.
Monique Worrell, the state attorney for Orange and Osceola counties, said she’s reviewing the situation to see if any crimes have been committed.
If you have any questions about state government or the legislative process, you can ask the Your Florida team by clicking here.
This story was produced by WUSF as part of a statewide journalism initiative funded by the Corporation for Public Broadcasting.
