The State of Mississippi has used nearly $2 million in federal Temporary Assistance For Needy Families welfare funds to pay auditors and lawyers as part of its effort to recover millions in misspent TANF funds since 2021, state records show. Federal law says states can use TANF funds to pay for “accounting” and “litigation” services in some instances related to the program.
The State hired the New Orleans-based Jones Walker law firm last year to take over its civil lawsuit in an effort to claw back tens of millions in welfare dollars that investigators allege the Mississippi Department of Human Services misspent under its former director. Since then, Mississippi has paid the firm $376,803.81 using TANF welfare funds for its services.
The lawsuit names dozens of defendants, including former Mississippi Department of Human Services Director John Davis, former MDHS Deputy Director Jacob Black, nonprofit operator Nancy New, retired NFL quarterback Brett Favre and others. Davis and New have pleaded guilty to crimes related to the welfare scandal; officials have not accused Black or Favre of crimes. In total, the State is seeking $94 million from all defendants.
Included among the many incidents of alleged misspending the State cited in its lawsuit last year are instances in which Davis directed millions to friends, family and causes championed by wealthy sports celebrities. Officials say Davis and New directed millions to a volleyball stadium at Favre’s alma mater and toward a concussion drug company the football star had invested in.
Favre has repeatedly denied knowing federal welfare funds were involved. He asked the Mississippi Supreme Court to remove him from the case in a filing Monday.
An attorney for one of the civil defendants, Davis’ nephew Austin Smith, argued in court filings that Mississippi Gov. Tate Reeves should not be paying lawyers using TANF funds.
“Quite literally, Reeves is misspending public funds to control a suit to recover misspent public funds,” Smith’s attorney Jim Waide of Tupelo said in a May 11 filing in Hinds County Circuit Court. Reeves’ office did not respond to a request for comment.
The State is suing Smith
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