Grand Jury Finds DeSantis Admin Misappropriated Medicaid Funds for Marijuana Campaign

Grand Jury Presentment Details Medicaid Fund Diversion

The grand jury presentment documented that Florida's Agency for Health Care Administration redirected Medicaid administrative funds—earmarked for program operations—to produce and distribute materials opposing Amendment 3. The 22-page document, issued by the Thirteenth Judicial Circuit grand jury, cited internal AHCA budget transfers totaling an estimated $4.2 million between March and July 2026. Those transfers funded television spots, mailers, and a state-run website arguing that legalization would increase youth cannabis use and impair workplace safety.

Federal Medicaid statute restricts administrative funds to program management, enrollment, and compliance activities. Anti-legalization advocacy fell outside permissible uses under 42 U.S.C. § 1396b, the grand jury concluded. AHCA didn't dispute the transfers. Instead, the agency characterized them as public-health education within its statutory mandate.

Democratic Leaders Demand Federal Probe

Florida Democratic Party Chair Nikki Fried called for the U.S. Department of Health and Human Services Office of Inspector General to open a formal investigation into the fund transfers. In a letter sent August 28, Fried argued that the misappropriation violated both federal Medicaid rules and Florida's prohibition on using state resources for or against ballot measures. State Senator Shevrin Jones and Representative Anna Eskamani co-signed the letter, which requested an audit of all AHCA expenditures related to Amendment 3 messaging.

The DeSantis administration hasn't issued a public response to the grand jury finding or the Democratic demand. AHCA General Counsel declined to comment when reached by CannIntel on August 28.

Amendment 3 Context and Political Stakes

Amendment 3, which would legalize adult-use cannabis for Floridians 21 and older, is polling at 62% support ahead of the November 2026 ballot. The measure requires 60% approval to pass. Governor Ron DeSantis has publicly opposed the amendment, framing it as a threat to public safety and a windfall for multi-state operators. His administration's use of state resources to amplify that message has drawn scrutiny since June, when the Florida Ethics Commission dismissed a complaint on jurisdictional grounds.

The grand jury was empaneled in May to investigate allegations of procurement irregularities at AHCA. The Medicaid-fund finding emerged from a broader review of agency budget practices. For full background on this story, see the CannIntel topic hub on Florida marijuana legalization.

What happens next? HHS OIG typically responds to formal complaints within 60 days. If the office opens an investigation, Florida could face clawback demands for improperly spent federal Medicaid dollars.