JACKSON, Miss. – On Tuesday, the Administration for Children and Families (ACF) issued a letter requesting that the Mississippi Department of Human Services (MDHS) reimburse nearly $101 million related to the state’s most extensive welfare scandal.
The events began on February 5, 2020, when the welfare scandal was made public. At that juncture, the ACF uncovered a significant embezzlement scheme involving the improper use of Temporary Assistance for Needy Families (TANF) funds. This revelation resulted in the arrest of John Davis, the former Executive Director of MDHS, along with five other individuals.
John Davis, Nancy New, the founder of the Mississippi Community Education Center, and her son Zach New subsequently entered guilty pleas to charges in both federal and Hinds County courts.
The first audit conducted by the Mississippi Department of Human Services occurred in May 2020, revealing that approximately $94 million in taxpayer funds may have been misappropriated since 2017.
This audit also highlighted alleged ties between the welfare case and former NFL quarterback Brett Favre. Reports from State Auditor Shad White indicated that Favre Enterprises allegedly received $1.1 million for speaking engagements that Favre did not attend over a six-month span beginning in December 2017.
In September 2022, Mississippi Today published text messages from 2017 that suggested former Governor Phil Bryant was advising Favre on drafting a funding proposal to gain approval from the MDHS.
Further messages indicated that Bryant, Favre, New, Davis, and others may have colluded to divert at least $5 million from the state’s welfare resources to finance the construction of a volleyball stadium at the University of Southern Mississippi.
This brings us to Wednesday, when the ACF reiterated its demand for MDHS to repay nearly $101 million.
The MDHS has reported that a forensic audit identified over $88.4 million in improperly spent funds.
When contacted for comment, MDHS stated that “at this time, it is inappropriate for MDHS to comment regarding ongoing negotiations in an active legal matter.”
