💸 The Tape

A $10 million slice of a Medicaid legal settlement has become the epicenter of political turbulence in Florida, raising questions about whether the DeSantis administration steered public funds toward political allies and anti-marijuana campaigns via First Lady Casey DeSantis’s signature charity initiative, the Hope Florida Foundation.

The funds, part of a $67 million settlement with Centene, Florida’s largest Medicaid contractor, were directed to the Hope Florida Foundation last fall. But shortly after receiving the money, the foundation disbursed $5 million each to Secure Florida’s Future and Save Our Society from Drugs—two organizations that have funneled millions into Governor Ron DeSantis’s anti-Amendment 3 campaign, aimed at stopping recreational marijuana legalization.

Campaign finance records show these organizations routed $8.5 million to Keep Florida Clean, a political committee chaired by James Uthmeier, DeSantis’s former chief of staff and current attorney general. That committee then passed $10.5 million to the Republican Party of Florida and another $1.1 million to the Florida Freedom Fund, a DeSantis-controlled political vehicle.

Critics say the financial trail—starting with a Medicaid settlement and ending in political committee coffers—smacks of improper coordination, if not outright illegality.

“It looks like criminal fraud,” said State Rep. Alex Andrade (R-Pensacola), one of several Republicans now leading a House investigation into the Hope Florida Foundation’s finances. Speaker Daniel Perez (R-Miami) confirmed the House is demanding documents and communications regarding the foundation and other state programs.

The Hope Florida Foundation, run in support of the Department of Children and Families, was created to connect people on public assistance with faith-based and nonprofit services. While it operates under a philanthropic banner, the lack of financial transparency and the recent grant activity have raised alarms about political entanglements.

A grant proposal submitted by Save Our Society from Drugs vaguely promised to “address the substance use crisis,” while the Chamber’s Secure Florida’s Future proposal aimed to “raise awareness of Hope Florida’s efforts” in the business community. Neither detailed specific budgets or metrics.

DeSantis defended the arrangement, calling it “100% appropriate,” while Uthmeier and the Florida Freedom Fund deny any of the charity’s funds were used for political purposes. Yet with dark-money 501(c)(4) organizations involved, tracing exact dollar flows is nearly impossible.

If the IRS determines that the foundation’s political contributions are more than “insubstantial,” it could jeopardize the nonprofit’s tax-exempt status—a fate once faced by Donald Trump’s foundation over a $25,000 donation to then-Attorney General Pam Bondi.

As investigations deepen, one thing’s clear: Hope Florida’s funding practices are now under a microscope—and both political and legal consequences may lie ahead.

📈 Dog Walkers.

VFF Improves Term Loan

What’s Going On Here: Village Farms International (NASDAQ: VFF) has secured improved terms on its Farm Credit Canada (FCC) loan, providing greater financial flexibility to support its expanding international cannabis operations. The amended agreement eases financial covenants, eliminating the need for ongoing waivers and reflecting the company's evolution since the original 2013 deal.

The loan, which carries a variable interest rate under 8% and matures May 3, 2027, remains otherwise unchanged. CEO Michael DeGiglio highlighted the amendment as a vote of confidence in Village Farms’ growth trajectory, calling it a key enabler for future investments as the company leans further into its cannabis-focused strategy.

Why This Matters: It brings the 10+ year old facility up to date.

Mizzou Cracks Down

Whats Going On Here: Missouri’s cannabis regulators have added 6,000 more products to a major 2023 recall, bringing the total to nearly 157,000 items, including vapes, edibles, and pre-rolls. The issue stems from Delta Extraction, which used unregulated hemp-derived THC-A mixed with Missouri cannabis—violating state rules requiring all THC to come from licensed, in-state cultivation and be tracked via Metrc. Though no adverse effects have been reported, the recall aims to mitigate potential health risks. A court upheld the state’s position that THC-A becomes intoxicating regardless of origin, making Delta’s process non-compliant. While Midwest Magic cleared its name, many dispensaries and manufacturers remain stuck with unsellable inventory, prompting calls for more clarity—and possibly legal challenges—over the state’s handling of the recall.

Why This Matters: Common sense regulation is underway.

🗞️ The News

📺 YouTube

SNDL Headlines a Volatile Week: Top Developments in Cannabis, Reform, and Rescheduling | TDR

What we will cover:

✅Host Shadd Dales dives into the biggest developments in the cannabis industry for the week of April 7th—where cannabis stocks once again faced downward pressure despite a broader market rebound.

While news of delayed tariffs gave the markets a brief boost, MSOS and other marijuana stocks failed to hold gains. Investor focus is now squarely on the DEA, which is expected to announce the next step in cannabis rescheduling. However, many fear another 90-day delay in the Cannabis Reform process.

On the state level, Missouri’s controversial hemp bill sparked a fiery debate, exposing regulatory rifts. Meanwhile, Pennsylvania took a step toward long-term planning, with a Republican senator proposing a cannabis-funded “Legacy Fund.” In Alabama, lawmakers debated whether intoxicating hemp products like Delta-8 require tighter control.

Overseas, the biggest surprise came from Germany, where the government chose not to repeal legalization—giving global reform advocates some hope.

Meanwhile, corporate news included SNDL’s $32 million retail expansion, and Tilray posting a massive $793 million loss. The sector remains volatile—and until federal clarity arrives, the market’s holding its breath.