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Florida Cabinet Approves Sweeping Financial Reforms Amid Tensions with Governor DeSantis

Tallahassee, FL – June 10, 2025 – In a high-stakes meeting that underscored ongoing political frictions within Florida's executive branch, the state Cabinet voted Tuesday to approve a series of financial reforms proposed by Chief Financial Officer Jimmy Patronis. The measures, which include enhanced oversight of state insurance markets and new regulations on cryptocurrency investments by public funds, were passed despite vocal opposition from Governor Ron DeSantis, who criticized them as overreaching and potentially harmful to Florida's business-friendly environment.

The Cabinet session, held in the historic Capitol building, drew a packed audience of lawmakers, lobbyists, and concerned citizens. At the center of the debate was Patronis' flagship proposal: the Florida Financial Security Act (FFSA), a comprehensive bill aimed at bolstering the state's resilience against economic volatility. Patronis, a Republican ally of DeSantis but increasingly carving out his own policy niche, argued that the reforms are essential in light of recent hurricanes and inflationary pressures that have strained Florida's insurance industry.

"Florida families are one storm away from financial ruin," Patronis said during his opening remarks. "We've seen premiums skyrocket, and without bold action, we're leaving our citizens exposed. This isn't about politics; it's about protection." The FFSA includes provisions for creating a state-backed reinsurance fund to stabilize property insurance rates, mandating transparency in how pension funds invest in volatile assets like cryptocurrencies, and imposing stricter auditing requirements on public-private partnerships.

Governor DeSantis, who chairs the Cabinet meetings but does not have a vote on most matters, used his platform to push back forcefully. In a 20-minute address, he labeled the proposals as "bureaucratic overkill" that could deter investment and innovation in the state. "Florida has thrived because we've cut red tape, not added it," DeSantis stated. "These so-called reforms risk turning us into California, where regulations choke growth. I urge my colleagues to think about the jobs and opportunities we're putting at risk."

The Cabinet, which consists of the governor, attorney general, agriculture commissioner, and chief financial officer, operates on a majority-vote system for many decisions. Attorney General Ashley Moody and Agriculture Commissioner Wilton Simpson, both Republicans, sided with Patronis, forming the necessary majority to advance the reforms. Moody praised the insurance components, noting, "In a state prone to natural disasters, we can't afford complacency. This act provides a safety net without infringing on free markets." Simpson echoed her sentiments, highlighting the agricultural sector's vulnerability to insurance fluctuations.

The vote was not without drama. DeSantis attempted to table the discussion, citing the need for further economic impact studies, but the motion failed 3-1. Sources close to the governor's office, speaking on condition of anonymity, suggested that DeSantis views Patronis' independent streak as a potential challenge to his authority, especially as speculation mounts about Patronis' ambitions for higher office. Patronis, a former state legislator from Panama City, has been positioning himself as a pragmatic conservative, often focusing on fiscal conservatism and disaster preparedness—issues that resonate in Florida's Panhandle, still recovering from Hurricane Michael in 2018.

Background on the tensions dates back to DeSantis' rise to national prominence. Elected governor in 2018 and re-elected in 2022, DeSantis has centralized power in Tallahassee, often clashing with other statewide officials over issues like education policy, COVID-19 responses, and now financial regulations. Patronis, appointed CFO in 2017 by then-Governor Rick Scott and elected to the position in 2018, has generally supported DeSantis' agenda but has diverged on matters involving insurance and consumer protection. For instance, during the 2023 legislative session, Patronis advocated for tort reform to curb lawsuit abuse in the insurance sector, a move DeSantis supported, but the current proposals go further by introducing state intervention, which DeSantis opposes on ideological grounds.

The FFSA's cryptocurrency regulations have drawn particular scrutiny. Florida has positioned itself as a hub for blockchain and digital assets, with Miami hosting major crypto conferences and companies. The new rules would require state pension funds to limit crypto holdings to 5% of their portfolios and mandate annual risk assessments. Proponents argue this prevents another FTX-like collapse from impacting public funds—referencing the 2022 bankruptcy of the Bahamas-based exchange founded by Sam Bankman-Fried, which had ties to Florida investors. Critics, including DeSantis, warn that such caps could stifle innovation and drive tech firms to states like Texas or Wyoming.

Beyond the Cabinet vote, the reforms now head to the Florida Legislature for potential codification into law. With the 2025 session underway, lawmakers are divided. House Speaker Paul Renner, a DeSantis ally, expressed reservations, stating in a post-meeting interview, "We need to balance protection with prosperity. I'll be reviewing this closely." Senate President Kathleen Passidomo, however, signaled openness, saying, "Floridians deserve affordable insurance, and if this helps, we're all for it."

Public reaction has been mixed. Advocacy groups like Floridians for Fair Insurance hailed the decision as a victory for homeowners, with spokesperson Maria Gonzalez declaring, "Finally, someone is standing up to the big insurers." Conversely, business organizations such as the Florida Chamber of Commerce decried the measures as "anti-growth," predicting higher costs for consumers.

The meeting also touched on other agenda items, including approvals for state land acquisitions in the Everglades for conservation purposes and updates on the state's wildfire prevention budget. Patronis used the platform to announce a new initiative for financial literacy programs in public schools, tying it to the broader theme of economic security.

Analysts see this as a pivotal moment in Florida politics. Dr. Susan MacManus, a political science professor at the University of South Florida, commented, "This isn't just about policy; it's about power dynamics. DeSantis has dominated the narrative, but Patronis is emerging as a counterweight, especially with 2026 elections on the horizon." DeSantis, whose term ends in 2027, has been rumored to be eyeing a presidential run in 2028, though he has downplayed such talk.

As the dust settles, the Cabinet's decision could reshape Florida's financial landscape. With hurricane season approaching, the insurance reforms may face their first real test soon. Patronis, undeterred by the governor's criticism, ended the meeting on an optimistic note: "We're building a stronger Florida, one policy at a time."

This development comes amid broader national discussions on state-level financial regulations, as other Sun Belt states grapple with similar issues of growth, disaster preparedness, and economic diversification. Florida's actions could set precedents, influencing policies from Texas to North Carolina.

In the weeks ahead, expect lobbying efforts to intensify as the Legislature debates the FFSA. DeSantis, known for his hands-on approach, may rally allies to amend or block parts of the bill. Meanwhile, Patronis is scheduled to tour affected communities, promoting the reforms directly to voters.

The Cabinet's next meeting is set for July, where budget allocations for the upcoming fiscal year will be on the table, potentially reigniting these tensions. For now, Florida's political scene remains as dynamic and unpredictable as its weather.

Read the Full Tallahassee Democrat Article at:
[ https://www.tallahassee.com/story/news/local/state/2025/06/10/florida-cabinet-cfo-desantis/84129921007/ ]