Mississippi Today

Court filing alleges Gov. Phil Bryant directed welfare funds for illegal volleyball and concussion drug projects

Published

1 year ago

December 19, 2023

For the first time in a court filing, a key defendant in the Mississippi welfare scandal is alleging that former Gov. Phil Bryant was behind the use of welfare agency grant funds for two projects now deemed illegal.

The nonprofit founded by Nancy New, one of the central figures of the scheme, is alleging that Bryant was involved in directing welfare funds towards the construction of a volleyball stadium and a pharmaceutical startup company — two projects former NFL quarterback Brett Favre lobbied officials to support. Favre has also alleged that Bryant supported the nonprofit’s payments to the two ventures.

“Based on the foregoing, as well as evidence that will be presented at trial, Bryant was involved, both directly and indirectly, in directing, approving, facilitating, and/or furthering MDHS’s use of federal grant funds for Prevacus and for construction of the USM volleyball center,” reads a Dec. 12 court filing by Mississippi Community Education Center’s attorney Gerry Bufkin.

Bryant has previously denied involvement in the use of welfare funds for either project. Through his attorney, Bryant declined to answer questions about the allegations made in the Dec. 12 filing. Bryant, who is suing Mississippi Today for defamation, has sent threats to the news outlet for continuing to report this story, including basic updates about public court documents.

The court filing also details how at least some of the welfare money sent to the concussion drug company Prevacus may have actually ended up in the hands of scammers in Ghana.

New is one of eight criminal defendants and 47 civil defendants that Mississippi Department of Human Services is suing in an attempt to recoup $77 million in stolen or misspent federal funds.

Last year, New alleged in a filing that Bryant instructed her to make a $1.1 million payment directly to Favre, but this is the first time she or her nonprofit have alleged Bryant was behind payments to the other Favre projects.

Mississippi Community Education Center’s 81-page answer to the complaint, filed Dec. 12, alleges that Bryant conferred with then-agency director John Davis to channel agency grant funds towards the projects, but that the state has purposefully left the former governor out of the lawsuit. The filing also argues that the welfare department has been exploiting flexibility in federal law around state spending since the inception of the Temporary Assistance for Needy Families program in 1996.

“By omitting Bryant, and by attempting to disavow Davis, MDHS seeks to distance itself from its 25-year course of performance in relation to TANF and other grant expenditures,” the filing reads.

This is a similar argument to those made by other defendants such as Favre, fitness trainer Paul Lacoste and the nephew of the former welfare director.

The timeline

The latest court filing contains a lengthy timeline of Bryant’s alleged involvement in the Favre projects using texts and documents, most of which have been previously produced in court or published by Mississippi Today.

The relevant messages include texts New has produced between herself and Favre and Bryant; texts Bryant produced between himself and Favre; texts Vanlandingham produced between himself, Bryant and Favre and other associates.

The texts contain gaps that defendant testimony — which has not yet been gathered — may fill. Mississippi Community Education Center’s latest filing contains references to records and unspecified “evidence that will be presented at trial” to back up its claims against the former governor.

The following is an abbreviated timeline of the events as described in the court document. It reflects only Mississippi Community Education Center’s side of the story, and Bryant is not a defendant in the case.

Nov. 1, 1996: Phil Bryant became Mississippi’s State Auditor, the same year Congress passed the Personal Responsibility and Work Opportunity Reconciliation Act, which replaced the former entitlement cash welfare program with the Temporary Assistance for Needy Families block grant.

Jan. 11, 2016: Elected governor four years earlier, Bryant appointed John Davis as the director of the Mississippi Department of Human Services.

April 20, 2017: Favre first texted Bryant to say that he was working to build a volleyball facility on University of Southern Mississippi’s campus, and “I need your influence somehow to get donations and or sponsorships.”

July 2017: Favre again asked for the governor’s help, texting, “you are the governor and on our side and that’s a good thing.” The governor communicated with Davis, the filing alleges. Davis then met with Favre, New and others at USM, where Davis committed $4 million to the project.

August 2017: USM would not immediately accept the funds. Favre contacted Bryant for help, the filing alleges, then Bryant contacted New. New texted Favre, “Wow, just got off phone with Phil Bryant! He is on board with us! We will get this done!” Days later, USM accepted the grant funds after someone arranged a deal that the university could take $1 million of it for its own improvement projects.

September 2017: Worried about a funding shortfall for the volleyball facility, Favre again contacted the governor, the court filing alleges “based on information and belief.” “I saw the Governor last night,” New texted Favre. “It’s all going to work out.” Soon after, the filing alleges, the welfare agency increased its commitment from $4 million to $5 million.

May 2018: Construction again faced a funding shortfall. Favre reached out to Bryant, texts show. One week later, the project received additional funding. “Good News. I have a little money for the ‘project’ – $500,000!” New texted Favre.

October-December 2018: Favre and Vanlandingham, the Prevacus founder, had been in talks with a Mississippi-based investor group, but the deal fell through after the group asked for 95% shares in the company, with no cash investment, solely for them to use their “political clout” to secure FDA approval. So they reached out to Bryant. They offered him stock in the company. All three, in addition to others, met for dinner at Walker’s Drive-In to discuss opportunities for the company. Mississippi Today has reported on this meeting and the text exchanges surrounding it.

January-June 2019: Days after the Walker’s meeting, welfare officials met at Favre’s house and agreed on a $1.7 million grant for Prevacus. Vanlandingham texted the governor to express his excitement about working with his welfare officials. “1.95M with the Governors help,” Vanlandingham texted another Mississippi official and potential investor, according to the court filing. New began sending payments to Prevacus and Favre informed the governor of the cash flow. Vanlandingham, Favre and Bryant texted continually about Prevacus business developments. Read more in Mississippi Today’s series “The Backchannel.”

June 11, 2019: Vanlandingham met Gov. Tate Reeves, then a candidate for governor, in New Orleans. Discussing the meeting with other Prevacus board members, Vanlandingham said, “I’m meeting the governor and who he’s supporting to take his place in Mississippi. Hoping to keep that non-dilute running our way!!!” Read more in Mississippi Today’s October article.

June 21, 2019: Bryant received a tip about Davis allegedly committing fraud, which he turned over to State Auditor Shad White, effectively forcing Davis out of office.

July 2, 2019: Bryant met with New, the court filing alleges. “MDHS owed reimbursements to MCEC and New told Bryant she could no longer fund Prevacus and volleyball without the reimbursements,” the filing reads.

July 12, 2019: New texted Vanlandingham, “we can send 400k today [but] I will need to let Brett know that we will need to pull this from what we were hoping to help him with [volleyball]….” (MDHS’s civil complaint says the money was delivered on July 16, 2019.)

July 16, 2019: New texted Favre, “I may not be able to assist you in Aug. as we had planned.” Favre responded, “About to see Governor Bryant.” Favre, on his way to see the governor, texted Bryant, “I really need your help with Nancy and Jake.” Bryant responded, “You my man… we are all in….” After seeing Favre, Bryant texted New, “Just left Brett Favre. Can we help him with his project. We should meet soon to see how I can make sure we keep your projects on course.”

July 22, 2019: New submitted a grant proposal to MDHS for $2 million in additional funds to finish construction on the volleyball stadium.

August 8, 2019: Bryant texted New, “Meeting with Brett in a few. Have the proposal and working it through DHS.” Bryant and Favre met. Favre texted New that they had met about something else, and “he only had 15 minutes but he did say at the end that he will get this done with you!!!”

August-November 2019: Bryant, Favre and New worked together to try to usher the volleyball proposal through MDHS, the court filing alleges. “Bryant, using Favre as intermediary, told New how to revise the grant proposal to ‘get it accepted,’” the filing alleges. Favre texted New, “He said to me just a second ago that he has seen it but hint hint that you need to reword it to get it accepted.” Bryant secured a meeting for New and Favre with then-director Christopher Freeze to discuss the proposal. Later on, Bryant told Freeze he supported the project. Read more here.

December 2019: After a meeting between Bryant and New, the court filing alleges, the welfare agency awarded New’s nonprofit three new grants totaling $8.6 million. Bryant texts New, “Did y’all get any Of the new programs from DHS?” New responded, “Yes, we did … Someone was definitely pulling for us behind the scenes. Thank you,” to which Bryant responded with a smiley face emoji.

January 2020: Favre and Vanlandingham discussed offering Bryant a package – either stock or cash – ”that will get him determined to see [Prevacus] through.” After Bryant left office on Jan. 15, 2020, Vanlandingham texted Bryant the next day, “Now that you’re unemployed I’d like to give you a company package for all your help … we want you on our team!!!” Bryant responded, “Sounds good. Where would be the best place to meet.”

Feb. 5, 2020: John Davis, Nancy New and four others “were arrested for spending grant funds as directed, approved, facilitated, and/or furthered by MDHS, including, without limitation, the MDHS Executives, Bryant, and Davis,” the filing reads.

This article first appeared on Mississippi Today and is republished here under a Creative Commons license.

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Mississippi Today

Mississippi Legislature approves DEI ban after heated debate

Published

10 hours ago

April 2, 2025

Staff Editor

mississippitoday.org – @MSTODAYnews – 2025-04-02 16:34:00

by Michael Goldberg, Mississippi Today
April 2, 2025

Mississippi lawmakers have reached an agreement to ban diversity, equity and inclusion programs and a list of “divisive concepts” from public schools across the state education system, following the lead of numerous other Republican-controlled states and President Donald Trump’s administration.

House and Senate lawmakers approved a compromise bill in votes on Tuesday and Wednesday. It will likely head to Republican Gov. Tate Reeves for his signature after it clears a procedural motion.

The agreement between the Republican-dominated chambers followed hours of heated debate in which Democrats, almost all of whom are Black, excoriated the legislation as a setback in the long struggle to make Mississippi a fairer place for minorities. They also said the bill could bog universities down with costly legal fights and erode academic freedom.

Democratic Rep. Bryant Clark, who seldom addresses the entire House chamber from the podium during debates, rose to speak out against the bill on Tuesday. He is the son of the late Robert Clark, the first Black Mississippian elected to the state Legislature since the 1800s and the first Black Mississippian to serve as speaker pro tempore and preside over the House chamber since Reconstruction.

“We are better than this, and all of you know that we don’t need this with Mississippi history,” Clark said. “We should be the ones that say, ‘listen, we may be from Mississippi, we may have a dark past, but you know what, we’re going to be the first to stand up this time and say there is nothing wrong with DEI.'”

Legislative Republicans argued that the measure — which will apply to all public schools from the K-12 level through universities — will elevate merit in education and remove a list of so-called “divisive concepts” from academic settings. More broadly, conservative critics of DEI say the programs divide people into categories of victims and oppressors and infuse left-wing ideology into campus life.

“We are a diverse state. Nowhere in here are we trying to wipe that out,” said Republican Sen. Tyler McCaughn, one of the bill’s authors. “We’re just trying to change the focus back to that of excellence.”

The House and Senate initially passed proposals that differed in who they would impact, what activities they would regulate and how they aim to reshape the inner workings of the state’s education system. Some House leaders wanted the bill to be “semi-vague” in its language and wanted to create a process for withholding state funds based on complaints that almost anyone could lodge. The Senate wanted to pair a DEI ban with a task force to study inefficiencies in the higher education system, a provision the upper chamber later agreed to scrap.

The concepts that will be rooted out from curricula include the idea that gender identity can be a “subjective sense of self, disconnected from biological reality.” The move reflects another effort to align with the Trump administration, which has declared via executive order that there are only two sexes.

The House and Senate disagreed on how to enforce the measure but ultimately settled on an agreement that would empower students, parents of minor students, faculty members and contractors to sue schools for violating the law.

People could only sue after they go through an internal campus review process and a 25-day period when schools could fix the alleged violation. Republican Rep. Joey Hood, one of the House negotiators, said that was a compromise between the chambers. The House wanted to make it possible for almost anyone to file lawsuits over the DEI ban, while Senate negotiators initially bristled at the idea of fast-tracking internal campus disputes to the legal system.

The House ultimately held firm in its position to create a private cause of action, or the right to sue, but it agreed to give schools the ability to conduct an investigative process and potentially resolve the alleged violation before letting people sue in chancery courts.

“You have to go through the administrative process,” said Republican Sen. Nicole Boyd, one of the bill’s lead authors. “Because the whole idea is that, if there is a violation, the school needs to cure the violation. That’s what the purpose is. It’s not to create litigation, it’s to cure violations.”

If people disagree with the findings from that process, they could also ask the attorney general’s office to sue on their behalf.

Under the new law, Mississippi could withhold state funds from schools that don’t comply. Schools would be required to compile reports on all complaints filed in response to the new law.

Trump promised in his 2024 campaign to eliminate DEI in the federal government. One of the first executive orders he signed did that. Some Mississippi lawmakers introduced bills in the 2024 session to restrict DEI, but the proposals never made it out of committee. With the national headwinds at their backs and several other laws in Republican-led states to use as models, Mississippi lawmakers made plans to introduce anti-DEI legislation.

The policy debate also unfolded amid the early stages of a potential Republican primary matchup in the 2027 governor’s race between State Auditor Shad White and Lt. Gov. Delbert Hosemann. White, who has been one of the state’s loudest advocates for banning DEI, had branded Hosemann in the months before the 2025 session “DEI Delbert,” claiming the Senate leader has stood in the way of DEI restrictions passing the Legislature.

During the first Senate floor debate over the chamber’s DEI legislation during this year’s legislative session, Hosemann seemed to be conscious of these political attacks. He walked over to staff members and asked how many people were watching the debate live on YouTube.

As the DEI debate cleared one of its final hurdles Wednesday afternoon, the House and Senate remained at loggerheads over the state budget amid Republican infighting. It appeared likely the Legislature would end its session Wednesday or Thursday without passing a $7 billion budget to fund state agencies, potentially threatening a government shutdown.

“It is my understanding that we don’t have a budget and will likely leave here without a budget. But this piece of legislation …which I don’t think remedies any of Mississippi’s issues, this has become one of the top priorities that we had to get done,” said Democratic Sen. Rod Hickman. “I just want to say, if we put that much work into everything else we did, Mississippi might be a much better place.”

This article first appeared on Mississippi Today and is republished here under a Creative Commons license.

Mississippi Today

House gives Senate 5 p.m. deadline to come to table, or legislative session ends with no state budget

Published

10 hours ago

April 2, 2025

Staff Editor

mississippitoday.org – @MSTODAYnews – 2025-04-02 16:13:00

by Taylor Vance, Mississippi Today
April 2, 2025

The House on Wednesday attempted one final time to revive negotiations between it and the Senate over passing a state budget.

Otherwise, the two Republican-led chambers will likely end their session without funding government services for the next fiscal year and potentially jeopardize state agencies.

The House on Wednesday unanimously passed a measure to extend the legislative session and revive budget bills that had died on legislative deadlines last weekend.

House Speaker Jason White said he did not have any prior commitment that the Senate would agree to the proposal, but he wanted to extend one last offer to pass the budget. White, a Republican from West, said if he did not hear from the Senate by 5 p.m. on Wednesday, his chamber would end its regular session.

“The ball is in their court,” White said of the Senate. “Every indication has been that they would not agree to extend the deadlines for purposes of doing the budget. I don’t know why that is. We did it last year, and we’ve done it most years.”

But it did not appear likely Wednesday afternoon that the Senate would comply.

The Mississippi Legislature has not left Jackson without setting at least most of the state budget since 2009, when then Gov. Haley Barbour had to force them back to set one to avoid a government shutdown.

The House measure to extend the session is now before the Senate for consideration. To pass, it would require a two-thirds majority vote of senators. But that might prove impossible. Numerous senators on both sides of the aisle vowed to vote against extending the current session, and Lt. Gov. Delbert Hosemann who oversees the chamber said such an extension likely couldn’t pass.

Senate leadership seemed surprised at the news that the House passed the resolution to negotiate a budget, and several senators earlier on Wednesday made passing references to ending the session without passing a budget.

“We’ll look at it after it passes the full House,” Senate President Pro Tempore Dean Kirby said.

The House and Senate, each having a Republican supermajority, have fought over many issues since the legislative session began early January.

But the battle over a tax overhaul plan, including elimination of the state individual income tax, appeared to cause a major rift. Lawmakers did pass a tax overhaul, which the governor has signed into law, but Senate leaders cried foul over how it passed, with the House seizing on typos in the Senate’s proposal that accidentally resembled the House’s more aggressive elimination plan.

The Senate had urged caution in eliminating the income tax, and had economic growth triggers that would have likely phased in the elimination over many years. But the typos essentially negated the triggers, and the House and governor ran with it.

The two chambers have also recently fought over the budget. White said he communicated directly with Senate leaders that the House would stand firm on not passing a budget late in the session.

But Senate leaders said they had trouble getting the House to meet with them to haggle out the final budget.

On the normally scheduled “conference weekend” with a deadline to agree to a budget last Saturday, the House did not show, taking the weekend off. This angered Hosemann and the Senate. All the budget bills died, requiring a vote to extend the session, or the governor forcing them into a special session.

If the Legislature ends its regular session without adopting a budget, the only option to fund state agencies before their budgets expire on June 30 is for Gov. Tate Reeves to call lawmakers back into a special session later.

“There really isn’t any other option (than the governor calling a special session),” Lt. Gov. Delbert Hosemann previously said.

If Reeves calls a special session, he gets to set the Legislature’s agenda. A special session call gives an otherwise constitutionally weak Mississippi governor more power over the Legislature.

This article first appeared on Mississippi Today and is republished here under a Creative Commons license.

Mississippi Today

Amount of federal cuts to health agencies doubles

Published

11 hours ago

April 2, 2025

Staff Editor

mississippitoday.org – @MSTODAYnews – 2025-04-02 14:48:00

by Gwen Dilworth, Mississippi Today
April 2, 2025

Cuts to public health and mental health funding in Mississippi have doubled – reaching approximately $238 million – since initial estimates last week, when cancellations to federal grants allocated for COVID-19 pandemic relief were first announced.

Slashed funding to the state’s health department will impact community health workers, planned improvements to the public health laboratory, the agency’s ability to provide COVID-19 vaccinations and preparedness efforts for emerging pathogens, like H5 bird flu.

The grant cancellations, which total $230 million, will not be catastrophic for the agency, State Health Officer Dr. Daniel Edney told members of the Mississippi House Democratic Caucus at the Capitol April 1.

But they will set back the agency, which is still working to recover after the COVID-19 pandemic decimated its workforce and exposed “serious deficiencies” in the agency’s data collection and management systems.

The cuts will have a more significant impact on the state’s economy and agency subgrantees, who carry out public health work on the ground with health department grants, he said.

“The agency is okay. But I’m very worried about all of our partners all over the state,” Edney told lawmakers.

The health department was forced to lay off 17 contract workers as a result of the grant cancellations, though Edney said he aims to rehire them under new contracts.

Other positions funded by health department grants are in jeopardy. Two community health workers at Back Bay Mission, a nonprofit that supports people living in poverty in Biloxi, were laid off as a result of the cuts, according to WLOX. It’s unclear how many more community health workers, who educate and help people access health care, have been impacted statewide.

The department was in the process of purchasing a comprehensive data management system before the cuts and has lost the ability to invest in the Mississippi Public Health Laboratory, he said. The laboratory performs environmental and clinical testing services that aid in the prevention and control of disease.

Mississippi State Health Officer Dr. Dan Edney addresses lawmakers during the Democratic caucus meeting at the State Capitol in Jackson, Miss., on Tuesday, April 1, 2025. The discussion centered on potential federal healthcare funding cuts.

The agency has worked to reduce its dependence on federal funds, Edney said, which will help it weather the storm. Sixty-six percent of the department’s budget is federally funded.

The Centers for Disease Control and Prevention pulled back $11.4 billion in funding to state health departments nationwide last week. The funding was originally allocated by Congress for testing and vaccination against the coronavirus as part of COVID-19 relief legislation, and to address health disparities in high-risk and underserved populations. An additional $1 billion from the Substance Abuse and Mental Health Services Administration was also terminated.

“The COVID-19 pandemic is over, and HHS will no longer waste billions of taxpayer dollars responding to a non-existent pandemic that Americans moved on from years ago,” the Department of Health and Human Services Director of Communications Andrew Nixon said in a statement.

HHS did not respond to questions from Mississippi Today about the cuts in Mississippi.

Democratic attorneys general and governors in 23 states filed a lawsuit against the U.S. Department of Health and Human Services Tuesday, arguing that the sudden cancellation of the funding was unlawful and seeking injunctive relief to halt the cuts. Mississippi did not join the suit.

Mental health cuts

The Department of Mental Health received about $7.5 million in cuts to federal grants from the Substance Abuse and Mental Health Services Administration.

Phaedre Cole, president of the Mississippi Association of Community Mental Health Centers, speaks to lawmakers about federal healthcare funding cuts during the Democratic caucus meeting at the State Capitol in Jackson, Miss., on Tuesday, April 1, 2025.

Over half of the cuts were to community mental health centers, and supported alcohol and drug treatment services for people who can not afford treatment, housing services for parenting and pregnant women and their children, and prevention services.

The cuts could result in reduced beds at community mental health centers, Phaedre Cole, the director of Life Help and President of Mississippi Association of Community Mental Health Centers, told lawmakers April 1.

Community mental health centers in Mississippi are already struggling to keep their doors open. Four centers in the state have closed since 2012, and a third have an imminent to high risk of closure, Cole told legislators at a hearing last December.

“We are facing a financial crisis that threatens our ability to maintain our mission,” she said Dec. 5.

Cuts to the department will also impact diversion coordinators, who are charged with reducing recidivism of people with serious mental illness to the state’s mental health hospital, a program for first-episode psychosis, youth mental health court funding, school-aged mental health programs and suicide response programs.

The Department of Mental Health hopes to reallocate existing funding from alcohol tax revenue and federal block grant funding to discontinued programs.

The agency posted a list of all the services that have received funding cuts. The State Department of Health plans to post such a list, said spokesperson Greg Flynn.

Health leaders have expressed fear that there could be more funding cuts coming.

“My concern is that this is the beginning and not the end,” said Edney.

This article first appeared on Mississippi Today and is republished here under a Creative Commons license.