Thousands of Mississippians stand to lose health insurance later this year because of Speaker of the House Philip Gunn’s refusal to extend postpartum Medicaid coverage from 60 days to a year.
When the COVID-19 public health emergency ends, possibly as early as July, the 40,000 Mississippians currently covered under pregnancy Medicaid rules will lose coverage. People who give birth after that point will have 60 days to recover and make follow-up appointments with doctors.
After that, they’ll be on their own.
That harsh, quick disintegration of a safety net is one that many Mississippi mothers already know well: About 60% of births in the state are covered by Medicaid, one of the highest percentages in the United States.
Dr. Nina Ragunanthan, an OB-GYN at Delta Health Center, a federally qualified health clinic in Mound Bayou, said the “vast majority” of her patients are on Medicaid. Complications after birth are a major contributor to the state’s high maternal mortality rate, she said, and depression and anxiety in particular can arise and worsen well after 60 days postpartum.
Black women in Mississippi die of pregnancy-related complications at a rate three times higher than white women.
“I just think that this is a no-brainer,” she said. “It would be so good for the health of women, the health of babies, and even makes economic sense.”
There are still paths to extending postpartum coverage that don’t depend on the state legislature, according to Joan Alker, executive director and co-founder of the Center for Children and Families (CCF) at Georgetown University. The U.S. Congress is considering legislation to require states to provide 12 months of Medicaid coverage postpartum.
Theoretically, Gov. Tate Reeves could direct the state Medicaid agency to ask the federal government to grant approval for the extension. But the legislature would still need to approve appropriations.
Sen. Kevin Blackwell, R-Southaven, who authored the bill extending postpartum Medicaid coverage, said he plans to reintroduce the legislation next year and hold a hearing on the issue sometime this summer.
Mississippi Today spoke with six moms from around the state about their experiences with Medicaid coverage during and after their pregnancies. Several of them gave birth during the pandemic and found that extended coverage let them access care for postpartum depression that would otherwise have gone untreated. Others had babies before the pandemic and lost their coverage after 60 days. One mom sustained an injury during childbirth that she couldn’t get treated because she lost health coverage too soon. Thirteen years later, she’s still dealing with the consequences.
Chelsea Brooks with her son, Tatum.
Chelsea Brooks
27 years old, graduate student, Florence
I was 28 weeks pregnant when I lost my insurance. And I applied for Medicaid. It was pretty easy to apply for. I ended up having to go a lot because I had high blood pressure while I was pregnant. Like probably two weeks before I was supposed to give birth, I started having some contractions. I went to the hospital. They paid for my ER visit. I gave birth early. They paid for that, my C-section, and I had to have emergency gallbladder surgery two weeks after I gave birth. It paid for that.
I am still on my Medicaid, from my understanding, due to the COVID pandemic. I had to have a postpartum depression follow up with my primary physician. I went in for my six-week appointment, I was fine. I didn’t ask for anything. I had to go in again after my six-week appointment and basically I told my doctor like, “Hey, I’m not coping well. I’m fine. My son is safe. But I just feel like I’m not coping well. I’m crying, I’m tearful, any little thing is setting me off.” He was like, “Yeah, after you give birth sometimes you have those hormones.” I was breastfeeding as well. I was up, down, up, down, not getting sleep. He put me on something. He was like, “Follow up with your primary doctor within a week.” I did, and Medicaid paid for that.
[Not having health insurance] would have affected me bad. I wouldn’t have been able to go in and just be like, “Oh, I got a doctor’s appointment.” They’re gonna ask you for money…. Medicaid really gave me the opportunity to get the help that I needed. I could actually be not crying while helping my child. I could be a full-time parent and just be able to take care of him without feeling down or depressed and not miss his moments, not be unhappy with him, you know.
Personally, I feel like men shouldn’t make decisions regarding women’s health. … But if they cared about females and mental health and postpartum depression and anything like that, they would pass [the postpartum Medicaid extension]. Because the bigger issue is if women don’t have Medicaid or it’s not extended, do you not know how much could go wrong? Postpartum depression can lead to suicide, it can lead to infant death, it can lead to anything. It’s like they’re not seeing the bigger picture.
Courtney Darby pauses to comfort her son, R’Jay Jones, as she talks about postpartum Medicaid expansion at Family Health Center in Laurel, Miss., Tuesday, March 8, 2022. Many mothers in the state cannot afford medical care when their Medicaid coverage ends 60 days after giving birth. Credit: Eric Shelton/Mississippi Today
Courtney Darby
32 years old, teacher, Heidelberg
With [Deysha, now 13] being my first pregnancy, I didn’t know what to expect, what was going on, what was gonna happen. After I had her, my body didn’t go back to normal. My back just started bothering me with other types of just– little odds and ends. I just felt like, ‘hey, I didn’t get a chance to figure out a lot of issues that I was experiencing.’ Also [within] six weeks, you’re supposed to be at home, trying to recover, being at home with the baby, not out in public.
[After R’Jay was born in December 2021] I actually received the letter in the mail saying that it would be reinstated on March the first [2022]. I was actually shocked, but I was also excited about that at the same time. With me not going back to work right now, dealing with other issues, that’s kind of a savior to me…
I’m kind of dealing with anxiety and depression. If you’ve never experienced it, it’s hard to explain. It’s hard for people to understand what it is that you’re going through and why. It’s like, in my community, it’s like, people don’t try to understand it. It’s like they think you snap out of it overnight. So any time that I need to reach out to the doctor, or mental health clinics, like I have to try to get myself better, [and Medicaid] has definitely been a major role. I don’t want to keep it covered to the point that I’m so down and out that I can’t dig myself out of that hole. I want to be the best parent that I can be for not only R’Jay, but also my other kids as well.
Kristen Elliott with her daughter, Sadie, the day after she was born. Credit: Kristen Elliott
Kristen Elliott
30 years old, stay-at-home mom, Brandon
If your Medicaid is canceled within 60 days [postpartum], you only have that 60 days. To me that’s like, OK, if you have any immediate needs, they need to be addressed now, while you’re still adjusting, trying to get back to normal life. Your body is still going under major changes, especially during those first six to eight weeks. It’s such a short time to expect mothers to not need postpartum care. So I’ve been thankful that I have had the extended care [since the birth of Sadie, my fifth child, in October 2021] and that it has been covered. My husband owns a small business, so we don’t have insurance otherwise. And I stay at home with the kids.
The Medicaid went out after 60 days [with my fourth baby]. The postpartum depression, it was actually a good bit later. Truly I think I was dealing with it before I actually got help. But that’s a big thing– new moms, you’ll blow things off as, well, we’re adjusting or things are just hard because there’s a new baby and you’re not getting enough sleep. You just fall underneath all the laundry and the dishes and nursing the baby. You don’t really think about yourself. She was closer to nine months before I ever got on anything, and saw somebody for my postpartum depression.
When I finally decided that I needed to go, a huge hesitancy was not having any medical coverage at that time. I was in a gap of where it was gonna cost out of pocket for me to go. So I was already kind of in a bad place, I didn’t want to get out of bed. I didn’t want to do anything. I just wanted to lay around and sleep. If I did get out of bed it was major anxiety. I would panic over small things.
Elliott paid out of pocket for treatment for postpartum depression following the birth of her fourth child.
I can tell such a huge difference [following the birth of Sadie], because one, I was already on prior medication for my anxiety and depression, things like that. But the adjustments that I’ve needed after having her, you know, it’s so much of an ease to just go and not have to stress over the finances and things like that. I don’t have to let it build up to where I’m at my breaking point. I felt like I’ve connected with my baby more, I feel like I’ve bonded with her more. I’ve felt more like myself, bringing her home, getting settled in. We had a NICU stay and we were in and out of the PICU, for the first eight weeks of her life, and even through all of that, if I hadn’t had that care, I think things would have looked a lot different for me.
Laura McCardle with her son, Kash, now two years old. Credit: Laura McCardle
Laura McCardle
31 years old, finance, Copiah County
We had a rough road from the very beginning, with a high-risk pregnancy from five weeks. He was delivered at 28 weeks [on Jan. 8, 2020]. We spent 84 days at the University of Mississippi Medical Center in the NICU.
Medicaid covered me through my six-week postpartum visit to get birth control, to make sure my pap smear was gonna be fine, I was healing well from my incision and all of this. I got a letter stating that I would be dropped March 31st [2020], ‘cause that was gonna be my 60 days. And I was like ‘well, I don’t know what I’m about to do because I’m not gonna go back to work right now. I’m not gonna spend my maternity leave in the NICU then send him to daycare. That’s not an option.’
Then COVID hit in the middle of him being at UMMC. I got a letter from Medicaid stating that it was going to be reactivated until the end of 2021. … That made me feel better. I’m not gonna lie, I did have some depression issues. My child was born at 28 weeks, he weighed two pounds, I couldn’t hold him or touch him. Of course there’s some issues there.
I’m [still] on [Medicaid] now, which is a huge blessing. But I really just wish that we could get this going for all the moms– just because they delivered in 2020, it’s not an exception.
Back at the end of November, December 2021, I was looking at going back to work. That gave me severe anxiety. … Who’s gonna have him, where’s he gonna go back to school? It was overwhelming. I called my OB-GYN. I discussed with her the sheer fear and terror that I was having, and she’s like ‘well, I think that maybe we should set you up with the wellness visit at a therapy center.’ So I was able to go and have that one-on-one time with the physician, who prescribed me some medication. Then I got a referral to go and talk to a therapist. I wouldn’t have been able to get that taken care of and handled had it not been for this COVID pandemic extending the coverage. I mean, I understand that I would have had to put your big girl panties on and deal with it. I understand that. But it’s just easier when you have support all the way around and then you have help from the physician.
McCardle has now returned to part-time work. She plans to get health insurance from her employer when she is working full-time.
Emma To with her daughter, Elli, now six years old. Credit: Emma To
Emma To
32 years old, Nurse anesthetist, Madison County
I was an RN for maybe three years, and then I went back to school for nurse anesthesia, which is advanced level practitioner. When you go back to school, you cannot work. The program’s so hard, if they do find out that you work and you’re failing, then you absolutely have no excuse.
I had went travel nursing before, saved up a bunch of money, I thought I was preparing myself. Then I found out I was pregnant. Surprise! I was married for eight years and never got pregnant. Then I was like crap, how are we going to do this, because I can’t work now. I went and got on Medicaid.
Whenever I delivered the baby [in 2015] they gave me 60 days… I think five days postpartum I had an allergic reaction to one of my medications. I had postpartum depression, I had postpartum anxiety, I had to call an ambulance when I had the allergic reaction, and Medicaid covered all of that. Luckily we have a friend of the family that was an insurance agent. He hooked me up with [a plan through] the Affordable Care Act [after I got kicked off Medicaid].
Medicaid is viewed as for poor people. But here I am, college-educated, I had a four-year Bachelor’s degree, and [I was] an RN. [I was] going back to school to get my doctorate. There’s a stigma in getting Medicaid. I hate that people look at it for just low socioeconomics. It’s not. It’s for help.
I paid taxes all those years. I worked since I was 16 years old. I was limited whenever I actually needed it, because I was trying to better myself– it was cut off for a certain amount of time. Now I’m a CRNA. I make over six figures a year. I don’t mind helping others out there who need it. This is how it’s supposed to work.
A.M.
30s, state employee, Columbia
A.M. works for the state of Mississippi and requested her name not be used by Mississippi Today.
I was 19 when I found out I was pregnant. Here I am waiting tables, not married, and pregnant. So [delays with getting onto Medicaid] was definitely a little bit of added stress. I didn’t really have any trouble with them covering stuff after my pregnancy. But those 60 days after, I mean like to the day, they cut me off. And that was not the greatest. My son just turned 13 and I still actually am having residual SI [sacroiliac] joint pain from delivering him. The first five weeks I could barely walk after delivering him.
During the delivery the doctor did something– I still think he may have fractured my tailbone or actually broken it. I couldn’t walk. So I couldn’t get out to be seen for what was going on with my tail bone.
I go– What is today? Monday. I go in two days to the chiropractor again and probably will be getting referred to a specialist. Even if I had just been able to have [Medicaid] until my child was six months, I probably would have gotten everything handled then. God only knows how much this is going to cost me now, because I couldn’t afford it then.
Really and truly, unless you have been in a low income parent’s footsteps– I’m not trying to toot my own horn by any means. But you’ve got someone who’s going to college, working one to three jobs, and you’re being told, ‘well, you need to work harder.’ I can’t. I can go back and pull a picture of our calendar one month and show you everything I had going on at that time. There was no room for anything else. I can’t tell you how much money I have spent on Monster and Red Bull and Bang and coffee. There’s not always a way to work harder, and telling me to get another job– well, day care’s not open anymore than what I’m already working.
After losing her Medicaid coverage, A.M. had no health insurance for about six years.
And I still, even through all of this, consider myself a relatively lucky person. I didn’t have anything traumatic happen during those times when I didn’t have insurance. I did break a pinky toe. But that was nothing. I didn’t have to go to the doctor. I didn’t almost lose an arm or become deathly ill. I made it through kind of OK.
During the three-month 2022 legislative session, House Speaker Philip Gunn kept a copy of a January Mississippi Today article that noted the Legislature faced unprecedented tasks and questioned whether it “might have to go into extra innings — either extending the regular session or coming back into special session” to get its work done.
The article predicted the session would be “a donnybrook,” given that lawmakers had an extra $4.2 billion to spend and Republican House and Senate leaders and the governor have had trouble agreeing on major issues.
“Well, looking at this list, how did we do?” Gunn said Tuesday night after a session’s-end press conference ended. “We addressed everything on this list.” As for one item in the list left undone — reinstating voters’ rights to ballot initiatives — Gunn said, “The House did pass a ballot initiative.”
The session was something of a donnybrook, with bitter political fighting, standoffs, public recriminations, fear and loathing between the Republican leadership of the House and Senate. Lawmakers did have to extend the session, if only by a week, to get a budget passed. And a few issues were left on the cutting-room floor — notably the ballot initiative and a Senate push to extend Medicaid coverage for new moms to battle Mississippi’s high infant mortality rate.
It wasn’t pretty, it wasn’t smooth, and the end results left many disappointed or mad, but lawmakers did complete an unprecedented amount of work, spending and policy sea change from January 4 through April 5.
Although they often disagreed — and took some not so subtle jabs at each other throughout the session — Gunn and Lt. Gov. Delbert Hosemann, who leads the Senate, agreed at session’s end that it was fruitful.
“We addressed everything from medical marijuana to funding teachers (pay raise) which has been desperately need for so long,” Hosemann said. “… We have the most expansive infrastructure bill we have ever had in this state.”
“By any stretch, the Mississippi Legislature performed this year,” Hosemann said. “There’s lots to go back and look at historically.”
Gov. Tate Reeves was mostly a nonentity this session, except for threatening to veto early medical marijuana plans and taking the occasional political jab at his fellow Republican legislative leaders amid the battle over tax cuts. But on Tuesday, despite having vowed elimination, not just cutting, of state income taxes, he signed a tax cut bill into law and praised lawmakers’ work.
“This is a tremendous victory, and will have a tremendous impact on the average Mississippian and a tremendous impact on our state economy for years to come,” Reeves said.
The 2022 Legislature passed the largest teacher pay raise and income tax cuts in state history. After years of failed attempts, it created a medical marijuana program. After decades of failed attempts, it drew new congressional districts.
The 2022 Legislature spent the largest amount of money in state history — a more than $7 billion state budget plus billions in federal funds — due largely to Congress’ COVID-19 stimulus largesse filling state coffers directly and indirectly.
Haggling over medical marijuana dominated the first weeks of the 2022 session. A standoff over tax cuts — with Gunn adamant that the personal income tax be eliminated and Hosemann insisting more measured cuts during uncertain economic times — dominated the rest.
The tax standoff stalled or halted negotiations on most other measures and on setting a budget and spending federal pandemic money. Hosemann complained that House leaders would not parlay on the budget until a tax agreement was reached near the end of the session, putting things behind schedule and forcing extension of the session and a last-minute scramble to finish work. Rank-and-file lawmakers complained the hasty work at the end forced them to rubber stamp lots of spending and policy decisions by the leaderships with little input.
The Mississippi Legislature ended the 2022 session not restoring the initiative process that allowed citizens to place issues on the ballot for voters to decide.
The Mississippi Supreme Court ruled the process invalid in May because of a technical error in the language detailing how the process works. When the Supreme Court ruled, most everyone agreed the Legislature would fix the language and restore the initiative. But during the 2022 session, House and Senate leaders could not agree on how to fix the language.
READ MORE: Lawmakers near finish line on spending unprecedented state and federal funds
Both chambers passed legislation earlier in the session restoring the process where an issue could be placed on the ballot if an initiative sponsor garnered the signatures equaling 12% of the vote in the last governor’s election, which would equal about 90,000 signatures. But in the conference process where only three House and three Senate members are allowed to negotiate differences in the legislation, Senate negotiators led by John Polk, R-Hattiesburg, insisted on a much higher number of signatures be gathered to place an issue on the ballot. Polk called for the number of signatures needed to place an issue on the ballot be equal to 12% of the registered voters as of the last presidential election or about 240,000 signatures.
House Constitution Chair Fred Shanks, R-Brandon, said House negotiators believe that the mandated number of signatures should remain at 12% of those voting in the last gubernatorial election as it was before the Court ruled the process invalid.
“We are going to remain firm,” Shanks said, adding he would try again in the 2023 session to restore the initiative process. “It is hard enough to get the signatures without increasing them.”
But Lt. Gov. Delbert Hosemann, who presides over the Senate, said the signature mandate needs to be increased.
“There was concern that … it is so easy to get people to sign,” Hosemann said. “… I think that was a concern of both the House and the Senate.”
He said there are companies that specialize in gathering signatures for initiative efforts and that it is much easier now to gather signatures than when the mandate equaling 12% of the number of people voting in the last gubernatorial election was put in place.
“We’re trying to get a number that makes sense,” Hosemann said.
But House Speaker Philip Gunn, R-Clinton, maintained the Senate was asking for “an enormously high threshold that we felt the citizens never be able to achieve.”
Both sides agree that the new proposal should allow voters to place issues on the ballot to change or amend general law. The initiative adopted in the early 1990s that was struck down by the Supreme Court last year allowed voters to amend the state Constitution.
Legislative leaders said they would prefer the process be used to amend general law because it is more difficult to change the Constitution. Changing the Constitution requires the approval of voters.
It is likely that any agreement also would prohibit legislators from changing any initiative approved by voters for two years except by a two-thirds vote of both chambers of the Legislature.
The Supreme Court struck down the proposal because the process required the mandated number of signatures to be gathered equally from the five congressional districts as they existed in 1990. The state lost a congressional seat in 2000.
The new language pending before the Legislature would require the signatures to be gathered equally from ever how many congressional districts the state has.
The initiative process was struck down at the same time the medical marijuana initiative that was approved by voters in November 2020 was ruled invalid by the Supreme Court.
It marked the first time in the modern era that the judiciary in any state had struck down an entire initiative process, according to Caroline Avakian, director of strategic communications for the Ballot Initiative Strategy Center, a national, pro-initiative non-profit.
While the only time in the modern era, the state Supreme Court landmark decision is not the only time a ballot initiative process has been ruled invalid by the judiciary. In the 1920s the Mississippi Supreme Court struck down a previous initiative process approved by state voters. After that 1920s ruling, it was not restored until the early 1990s.
Gov. Tate Reeves said recently he supported restoring the initiative. He said he does not intend to call a special session for the Legislature to consider the initiative, but might include it in the agenda if he called a special session for other topics.
Industrial wood pellet manufacturer, Enviva, announced plans Tuesday to open a new production plant in Bond as the company’s fourth Mississippi location.
The company says it will have about 100 local workers in the Stone County plant and is investing $250 million in the project.
Enviva makes wood pellets that are shipped all over the world and burned to produce power as an alternative to fossil fuels.
“Enviva has worked closely with state and local officials, delivering new investments, positive economic impact and strong support for the local communities,” John Keppler, the company’s CEO, said in a statement. “Our new plant in Bond is an integral part of Enviva’s growth strategy, which includes doubling production capacity over the next five years.”
The Bond plant is expected to open in 2024. Construction is scheduled to begin next year.
Enviva has existing manufacturing plants in Armory and Lucedale and a marine terminal at the Port of Pascagoula.
The Mississippi Development Authority is providing the company $4 million in grants for site development and infrastructure. The new plant is also certified under the state’s Advantage Jobs Rebate program, which gives companies yearly tax breaks based on the number of jobs they provide with higher-than-average salaries.
Stone County’s economic development office said it is still negotiating the terms of the incentive package used to attract the Maryland company to the new site.
Enviva says plant jobs, which range from equipment workers and supervisors to mechanics and electricians, will be paid different rates. The company declined to specify its wages but said they’ll be “competitive in the market.”
“Stone County was founded on the timber industry more than a hundred years ago,” Stone County Board of Supervisors President Lance Pearson said in a statement. “ With the announcement of Enviva, we have an opportunity to produce a record number of new jobs because of the plentiful resources in Stone County.”
Enviva says it will source low-value wood within 75 miles of the facility from privately owned forests. It operates 10 wood pellet plants across the Southeast and plans to produce 13 million metric tons of the pellets annually within the next five years.
The new Mississippi site is off Highway 49. It was selected in collaboration with Gov. Tate Reeves, the state development authority and local officials.
Wood pellet plants have been increasingly opening in the South as means to support growing demands out of Europe for renewable energy. While the companies that make the pellets describe themselves as a clean energy source, critics say production can lead to air pollution and deforestation.
Legislators worked late Monday night to fund state government at an unprecedented level and also to spend the bulk of $1.8 billion in federal pandemic stimulus provided to Mississippi by Congress.
The overall state support budget that has been agreed to by legislative leaders and is being rubberstamped by the full membership is expected to be $7.32 billion, or 9.2% more than what was appropriated for the current fiscal year.
Work continued late Monday to finalize the budget for the new fiscal year than begins July 1 and to spend the federal American Rescue Plan Act money. Legislators have a midnight Tuesday deadline to complete the process.
The bulk of the state’s federal ARPA money — $750 million — will go to cities, counties and rural water associations as matching money or grants for water and sewer infrastructure projects.
Note: Scroll to the bottom of this story to see a full list of the ARPA spending.
Because of an April 5 deadline and because legislators are limited in their impact over the budgeting process, most of the about 100 budget bills presented by the leadership were being approved Monday with little or no debate.
“This is frustrating on two levels: not enough members have input and if the conferencing (negotiations) was done in the open, then members would at least have more of an idea,” said Rep. Robert Johnson, D-Natchez, the House minority leader.
“And we are almost forced to take a vote because so much is done at deadline.”
Because of the infusion of an estimated $35 billion in federal coronavirus-relief funds into the state economy, state tax collections have soared, placing legislators in the rare position of being able to address more state needs than they are able to do during most sessions.
The state-support budget is funded from general tax revenue, such as the tax on retail items, income and other items. It does not include what are known as special fund agencies that are funded through a special tax or fee and it does not include federal funds, which provide state government an extra $11 billion.
Referring to the state support budget, Senate Appropriations Chair Briggs Hopson, R-Vicksburg, said, “To keep government services at the level we expect them to be we have to spend a little extra money to keep up with inflationary costs. I think we have done that in a responsible way in this budget.”
Hopson said the budget for most state agencies grew by an average of 3.1%. But the budget, which was still being finalized late Monday also will include other significant spending — sometimes one-time spending. For instance, the Legislature is budgeting $54 million to the Department of Human Services for a new computer system designed to help the agency that oversees various federal social services to operate more efficiently.
Public education formula will be shorted again
One entity that it appears will not keep up with inflation is the appropriation for the Mississippi Adequate Education Program, which provides the state’s share of the basics to operate local school districts.
MAEP’s funding is expected to increase $83.2 million, or 3.7%. But about $45 million of that additional spending will go for a teacher pay raise approved during the 2021 session, meaning those funds will not be available to help with the more than 6% increase in inflationary costs.
Senate Education Chair Dennis DeBar, R-Leakesville, said MAEP will be about $304 million short of full funding.
The budget also will include $246 million for the teacher pay raise approved this year by the Legislature. Those funds for the latest pay raise will not be incorporated into the MAEP funding formula until next year.
In addition, it appears that both the community colleges and public universities will receive sizable increases that can be used to provide faculty pay raises. The budget for the 15 community colleges is expected to increase almost 11% or $27.4 million, while the budget for the eight public universities is slated to jump by $125.7 million or 17%.
The budget also includes funds to pay for the increased costs to employees in the state health insurance program.
Hopson said the budget will also ensure no state employee “is going to be paid below the minimum as set by the state Personnel Board.”
The minimum is established by the Personnel Board by determining the salary for similar positions in the private sector and in surrounding states. Employees can go to the state Personnel Board web site to see what the salary range is for their job.
How federal ARPA money will be spent
Lawmakers agreed on spending $1.5 billion of the $1.8 billion the Legislature received, holding back more than $295 million that can be spent next year.
The largest expense — $750 million — will be providing matching money for city and county governments and rural water associations to help the states aging water and sewerage infrastructure. Cities and counties are receiving a combined separate $900 million in ARPA funds. The state will provide a 1-to-1 match to most cities and rural water associations, and a 2-to-1 match for small towns that are receiving less than $1 million from ARPA. The cap on the state ARPA match for cities will be $50 million.
The money would be provided as grants of up to $2.5 million for rural water associations.
Lt. Gov. Delbert Hosemann had initially pushed to spend much more on matching funds for major water, sewer and other projects for cities and counties. Hosemann had originally proposed the state spend up to half of its $1.8 billion ARPA allotment to match state funds to allow for larger, “transformational and generational” projects for local governments.
But legislative leaders and the head of the association representing Mississippi cities said they were pleased with the final ARPA spending agreement.
“We are disappointed it’s not as much as initially discussed — the needs are there — but we think it’s good they’ve come to this agreement,” said Mississippi Municipal League Director Shari Veazey. “There was talk at one point about them waiting for a year. Our cities have shovel-ready projects.”
Representatives of rural water associations — which provide water to most Mississippians — had told lawmakers they have about $1.4 billion in badly needed projects statewide. Many of these systems were built in the 1960s and 70s when affordable USDA loans were available, but they have not been able to afford maintenance and upgrades.
Sen. John Polk, R-Hattiesburg, led hearings over the summer and helped craft the Senate’s ARPA spending plan — much of which was agreed to by the House.
“I’m very pleased,” Polk said Monday evening about final ARPA agreements. “We are fixing to spend a lot of money that badly needs to be spent on very worthwhile projects across the state of Mississippi.”
House Speaker Pro Tem Jason White, R-West, said he was also pleased with the ARPA spending agreements. He said lawmakers can monitor the water and sewerage match programs, and potentially shift money or add more to it next year.
Although there was very little debate on any ARPA or budget bills as both the House and Senate passed bill after bill in a marathon Monday, some ARPA spending did generate questions. The decision for the state to provide $20 million in ARPA funds to private colleges and K-12 schools drew questions, and although it passed, it had some bipartisan opposition. The measure passed 64-27, with 16 not voting and 13 voting present.
“When you’re saying ‘independent colleges,’ that would be private colleges?” asked Rep. Becky Currie, who voted against the measure.
Rep. William “Bo” Brown, D-Jackson, said: “It seems to me we should be putting this money into our public schools, not private ones.”
In summer hearings, private college representatives said many of their campus buildings are around 100 years old and need work, and like public universities they could expand their nursing and other healthcare programs to help the state’s shortage.
ARPA spending list
Here is how lawmakers agreed to spend $1.5 billion of the more than $1.8 billion in ARPA funds allocated to the Legislature:
Environmental Quality/local water and sewerage: $450 million to match city and county ARPA money for water and sewerage infrastructure projects.
Child Protection Services: $59.1 million, the bulk of which will help the state’s troubled foster care system meet federal court-ordered reforms from a long-running federal lawsuit.
Employment Security: $60 million. This includes $40 million for nurse training at colleges and universities $20 million for health sciences infrastructure.
Emergency Management: $3.2 million to defray COVID-19 expenses.
Department of Finance and Administration: $337.25 million. This includes infrastructure upgrades at state agencies, colleges and universities and state parks. It also includes:
$30 million: to tourism destination marketing organizations statewide
$5 million: Small museums loan program
$5 million: Mainstreet Program
$10 million: to private colleges and universities
$10 million: grants private K-12 schools
$60 million: to defray increases in state employee health insurance costs
Health Department/rural water associations: $339.5 million, including $300 million for fiscal 2022 and $39.5 million for FY’23. The bulk of this, $300 million, will go to rural water associations statewide for infrastructure upgrades. Other money will go to Health Department operations, reimbursing hospitals for ICU and specialized beds during the pandemic and telehealth and other programs.
Public Universities/UMMC: $56 million. This includes $6 million for a nurse loan repayment and $50 million for University of Mississippi Medical Center renovations.
Mental Health: $104.6 million. The bulk of this money will be used to meet federal court-ordered reforms. Community mental health centers will receive $18.5 million.
Public Safety: $32.5 million over FY’22 and FY’23. This includes $12 million for premium pay for law enforcement and firefighters and $5 million for death benefits for first responders who died from COVID-19.
Supreme Court: $3.5 million. This includes money for DAs and staff, public defenders and trial judges to help reduce court backlogs.
University of Mississippi Medical Center School of Nursing building: $55 million.
Mississippi National Guard: $10.4 million for base infrastructure and improvements.
This was the late summer of 1967 at Meridian High’s practice field where the first integrated Meridian High Wildcats football team was preparing for a historic football season.
Morris Stamm, who was white and later played at Delta State, was lined up at offensive tackle and was supposed to block Robert Bell, who had just transferred from all-Black Harris High across town. Bell, who was not quite 6-feet tall and weighed about 260 granite-hard pounds, already had made an impact with his size, strength and quickness. You’ve heard the term “a man among boys?” Bell was one. Stamm knew the odds were against him.
Rick Cleveland
“I’ll never forget,” Stamm said last week, nearly 55 years later. “Robert was in the gap and my job was to move him inside. My mindset was, ‘I can do this. I can move him.’ Well, I hit him with everything I had. I hit him as hard as I could, right in his thigh pads. He didn’t move even an inch. Meanwhile, I went down like a sack of potatoes.
“But I had hit him hard. I thought for sure I was going to get an ‘atta boy” from the coaches. That didn’t happen. I looked up to see how far the running back had run. But he was on the ground behind me.”
A coach explained to Stamm what had happened. “Stamm, you hit him good, but he didn’t go nowhere,” the coach told him. “Bell just reached over you, grabbed the runner and threw him down.”
Said Stamm, when he paused from chuckling at his own story, “That’s when I knew Robert Bell was a different cat and I’m not talking about his skin color. He was strong as an ox. He wasn’t that tall but let’s put it this way: His shorts were bigger than everybody else’s. Off the field, he was a really gentle person. On the field, he was out there to win, buddy.”
Robert Bell, who died at age 70 last week in Texas, made his mark, first at Meridian High and then at Mississippi State, where he and Tupelo’s Frank Dowsing were the first two African-American football players.
Robert Bell in 2017.
Now, more than half a century later, it has become easier to put in proper perspective what a difference Bell, Dowsing, Ben Williams and James Reed at Ole Miss and Willie Heidelburg at Southern Miss made in the integration of Mississippi schools and society. They showed thousands of people first-hand that Black and white people could work and play together and be all the better for it. It was obvious to anyone who watched, and thousands did.
They made history is what those guys did. They were trailblazers. And they were not alone. It happened in small towns across Mississippi.
Mac Barnes, who was Bell’s teammate at Meridian and later a state championship winning coach at his alma mater, says he didn’t comprehend what was going on back in 1967 but he understands it now.
“We were naive,” Barnes said. “We didn’t realize the history that was being made. We were just playing ball, doing something we loved. I know now. Robert Bell was a very important person in the history of Meridian, Mississippi. It wasn’t just how good he was as a player, but the way he handled himself in that situation. He was bull-strong but he had a grace, a quiet confidence about him. I can only magine some of the things he must have heard, but if it bothered him, you wouldn’t have known it.”
Robert Turnage, a Meridian assistant coach at the time, says, “Robert Bell worked hard and he played hard, but he kind of took it easy on our guys in practice. In games, he turned it up a notch. I remember him blocking in the open field on a punt return against a powerhouse team from Alabama, Robert E. Lee of Montgomery. Happened right in front me. He hit one of their guys so hard, I swear, it sounded like a car wreck. Robert was a force.”
Robbie Armstrong played with Bell, both at Meridian and later at State. “Robert was a quiet guy who let his actions speak,” Armstrong said. “He was a class act. There were a lot of guys who were eager to go up against him and put him in his place. Well, let me tell you, that’s not the way it happened.”
Back then, in college football, freshmen weren’t allowed to play for the varsity. So Bell didn’t make his varsity debut until 1970. Before long, State fans had their special cheers for Bell. They wore white buttons with maroon lettering that read: “Give ‘em hell Robert Bell.” And he did.
Armstrong remembers a game their sophomore season. State was playing Georgia at Veterans Memorial Stadium. Bell was going head to head against Royce Smith, Georgia’a All-American guard, a senior.
Said Armstrong, “It was like two bulls going against one another. Georgia tried to run right at Robert behind Royce Smith. It was three plays and three and out. I remember Robert coming back over to the sidelines and he had blood on his face and was grinning through the blood. ‘That guy is pretty good,’ Robert said, ‘I had to use both forearms on him.’”
State beat Georgia 7-6 and Bell more than held his own against the All-American. State finished 6-5 that season, the only winning season of Coach Charley Shira’s tenure. Bell, who was only 19, was one of the team’s leaders.
Barnes was a running sophomore quarterback, who often went against Bell in practices at Meridian. Much of that time was spent scrambling away from Bell, whom Barnes said had a dry, funny sense of humor once you got to know him.
“One time in practice he chased me all over the field, cornered me and tackled me and was laying on top of me,” Barnes said. “Robert said, ‘Mac, I really like you, man, but if you keep running around like this, I’m going to have to hurt you.’ He could have, too.
“In retrospect, Robert had the perfect temperament to do what he did in Meridian and at Mississippi State. I am happy to say we became good friends back then and have remained so through the years. Mississippi has lost one of the really great ones.”
During his last year as governor, Phil Bryant indulged NFL legend Brett Favre’s pleas for help with a pharmaceutical venture, which ended up receiving more than $2 million in allegedly stolen welfare funds from the Mississippi Department of Human Services during Bryant’s administration.
This money was supposed to use to help the state’s most vulnerable residents.
Text messages reveal the backchannel of influence Bryant used to elevate the company, Prevacus, outside the view of the public — and the payout that awaited him when he left office.
Key takeaways from Part 1 of Mississippi Today’s “The Backchannel” series:
1) On Favre’s behalf, Bryant used his office and political influence to help leaders of Prevacus, a startup pharmaceutical company, connect with funding sources and high-level employees at the nation’s drug regulation agency.
2) Prevacus ended up collecting $2 million that prosecutors say was stolen from federal grants administered by the Mississippi Department of Human Services. The money flowed through a nonprofit organization with no public transparency and almost no oversight.
3) Prevacus offered Bryant shares for his help while he was still in office. The governor told the company’s owner he could not accept an incentives package until the day after he left office. Bryant appeared prepared to take the stock, but he abruptly ended his relationship with the company after the auditor made high-profile arrests in the welfare scandal.
4) Prevacus owner Jake Vanlandingham and Favre, who was a top investor in the company, saw Bryant as their ticket to receiving government funding for the private venture. Vanlandingham and Favre went to great lengths for several months to keep Bryant in the loop and in their corner. As the two became desperate for more funding, they strategized how to leverage the governor’s influence over the Mississippi Department of Human Services, the state’s welfare agency.
5) Bryant says he didn’t know federal welfare money was given to the drug company. But texts over the course of several months show that Favre and Vanlandingham briefed the governor about the welfare agency he oversaw and its powerful charity subgrantee passing funds to the drug company.
6) Bryant says he did not read his texts carefully enough to understand that Prevacus was working with and receiving taxpayer funds from the agency subcontractor – even though Favre and Vanlandingham told him by text on three separate occasions.
7) The idea was for Prevacus to spur job creation in the state, Bryant says. But he didn’t engage his economic development agency in that work — the typical path governors take when trying to entice companies to do business in Mississippi. Instead, Bryant kept his dealings with the company private and worked to get them to develop a clinical trials facility at the Mississippi Gulf Coast development in which he is listed as vice president. Prevacus never developed the anti-concussion drugs it promised and Vanlandingham sold the idea to another company. Mississippi taxpayers have nothing to show for the investment.
8) When investigators from the auditor’s office probed whether welfare funds had been misspent, Bryant removed John Davis, his appointed director of the Mississippi Department of Human Services who doled out federal grant money to people and organizations close to the governor with little oversight. But when Bryant’s new agency director — a former FBI agent — implemented a typical bid process for receiving the grant funds, Prevacus leaders and other grant beneficiaries asked the governor to step in and help.
This is a character guide for Mississippi Today’s series “The Backchannel.” Below are the main players and other people swept up in the sprawling welfare scandal and surrounding events. Most of these individuals have not been charged with a crime or accused of wrongdoing.
John Davis, director of the Mississippi Department of Human Services from 2016 to 2019
Nancy New, prominent private school operator, founder and director of the nonprofit Mississippi Community Education Center
Zach New, Nancy New’s son and nonprofit assistant director
Brett DiBiase, retired WWE wrestler, copier salesman, peer addiction educator
Ann McGrew, accountant for Nancy New’s nonprofit and for-profit private school company
Gregory “Latimer” Smith, former MDHS procurement officer
The political circle
Phil Bryant, Mississippi’s governor from 2012-2020, current partner at lobbying firm Bryant Songy Snell
Deborah Bryant, Bryant’s wife and First Lady
Joey Songy, Bryant’s former chief of staff and current business partner
Joe Canizaro, Bryant’s friend and wealthy developer from New Orleans
Laurie Smith, former educator and Bryant’s policy adviser, executive director of both the State Early Childhood Advisory Council and the State Workforce Investment Board
Mimmo Parisi, founder and director of a data science center at Mississippi State University and chair of the State Early Childhood Advisory Council
Andrea Mayfield, director of the Mississippi Community College Board and chair of the State Workforce Investment Board
Tate Reeves, Mississippi’s current governor, served as lieutenant governor in the Legislature when Bryant was governor
Rick Santorum, former U.S. Senator from Pennsylvania
The athletes
Brett Favre, retired Hall of Fame NFL quarterback from Kiln, Mississippi
Ted DiBiase, retired WWE wrestler and announcer known as “The Million Dollar Man” and evangelical preacher
Ted “Teddy” DiBiase Jr., Ted’s son and retired WWE wrestler and motivational speaker
Paul Lacoste, retired linebacker and fitness trainer from Jackson, Mississippi
The scientist
Jake Vanlandingham, Florida-based neuroscientist and owner of Prevacus
The old MDHS team
Jacob Black, former deputy director of MDHS under John Davis, interim MDHS director from January 2020 to March 2020, current staff officer at the Mississippi Division of Medicaid
Lynne Myers, former director of communications for MDHS and former Gov. Bryant staffer
Zola Haralson, Davis’ secretary at MDHS
The Family at Families First
Noah McRae, great-nephew of Gov. Phil Bryant, grandson of Deborah Bryant’s sister, former student of Nancy New’s private school
Austin Smith, nephew of John Davis, IT coordinator for Families First, project manager for Mississippi Community College Board preschool grant
Kevin Myers, husband of Lynne Myers and former “community liaison” for Families First for Mississippi, former deputy director for the Department of Public Safety
The new MDHS team
Christopher Freeze, Phil Bryant-appointed director of the Mississippi Department of Human Services from August 2019 to January 2020
Bob Anderson, Gov. Tate Reeves-appointed current director of the Mississippi Department of Human Services since March of 2020 and former prosecutor for the Mississippi Attorney General’s Public Integrity Division
The auditors
Shad White, Mississippi State Auditor, originally appointed by Phil Bryant in 2018 and first elected in 2019
Stephanie Palmertree, director of financial and compliance division at state auditor’s office
The prosecutors
Jody Owens, Hinds County District Attorney elected in 2019
Jamie McBride, Hinds County Assistant District Attorney
Brad Pigott, former U.S. Attorney for the Southern District of Mississippi hired by MDHS in 2021 to bring civil charges against those who misspent welfare money
The defense attorneys
Scott Gilbert, attorney for Teddy DiBiase Jr. and former attorney for Noah McRae
Merrida Coxwelland Chuck Mullins, attorneys for John Davis
Cynthia Speetjens, attorney for Nancy New
Tom Fortner, attorney for Zach New and Ted DiBiase and his wife Melanie
The celebrity
Jennifer Garner, Hollywood actress and ambassador for Save the Children
The organizations
Mississippi Department of Human Services, the state’s welfare agency, which administers around $1 billion in federal public assistance dollars each year
Prevacus, a Florida-based biomedical start-up
Families First for Mississippi, the name of a statewide family-stabilization program funded by tens of millions of welfare dollars from the Mississippi Department of Human Services and operated by the nonprofits Mississippi Community Education Center and Family Resource Center of North Mississippi
Mississippi Community Education Center, a nonprofit founded and run by Nancy New in Jackson
New Summit School, one of Nancy New’s private schools, located in Jackson
Family Resource Center of North Mississippi, a nonprofit run by Christi Webb in Tupelo
Cirlot Agency, the branding agency owned by Rick Looser and Liza Cirlot Looser that conducted marketing and design for Families First for Mississippi
Supertalk, the conservative talk radio network, run by Kim Dillon, that broadcasted Families First for Mississippi events and interviews
T.K. Martin Center, a Mississippi State University clinic for kids with learning disabilities that Phil Bryant asked John Davis to help
Willowood Developmental Center, a Jackson center for kids and adults with intellectual and developmental disabilities that Phil Bryant asked John Davis to help
Save the Children, an international humanitarian nonprofit Phil Bryant helped to receive welfare funding
Former Mississippi Gov. Phil Bryant used the authority of his office, the weight of his political influence and the power of his connections to help his friend and retired NFL quarterback Brett Favre boost a fledgling pharmaceutical venture.
Then he tried to cash in on the project when he left office, text messages show.
Favre believed he could make millions as an early investor in a drug company. He just needed a little more political and financial capital to push the enterprise into the end zone.
“It’s 3rd and long and we need you to make it happen!!” Favre wrote to the governor in late December 2018, according to text messages recently obtained by Mississippi Today.
“I will open a hole,” Bryant responded, piggybacking on the football metaphor.
Less than a week later, Favre would meet with Bryant’s welfare officials to strike a deal for a $1.7 million investment in the biomedical startup Prevacus, which promised it had found a treatment for concussions. Prosecutors now say that money was stolen from a federal program intended to serve the state’s poorest residents – a pot of money that had virtually no oversight.
Former Gov. Phil Bryant (right) poses with Brett Favre (left) and a $5,000 check from a local car dealership to the Mississippi Special Olympics. Credit: Courtesy @PhilBryantMS on Twitter
Bryant said he did not introduce Prevacus to Nancy New, the nonprofit director who made the payments and now faces bribery, racketeering and embezzlement charges.
But newly uncovered text messages show that, at the very least, Favre told Bryant that New had started funneling public funding to the drug company shortly after he began advocating on its behalf.
As governor, Bryant assisted Prevacus, the company at the center of Mississippi’s ongoing welfare embezzlement scandal, in finding investors and gaining favor with federal regulators.
Then, two days after he left office, Bryant agreed by text to accept stock in the company.
“Now that you’re unemployed I’d like to give you a company package for all your help,” Prevacus founder Jake Vanlandingham wrote in a Jan. 16, 2020, text. “…We want and need you on our team!!!”
“Sounds good,” responded the former governor, who was getting ready to take over a private sector lobbying firm. “Where would be the best place to meet. I am now going to get on it hard…”
In a three-hour-long interview with Mississippi Today on April 2, Bryant said that despite the timeline revealed through the candid messages – which he acknowledged “doesn’t look good” – he never intended on accepting stock in Prevacus and did not read his texts carefully enough to pick up on the fact that the company had received public funding in the first place.
“I should’ve caught that and I just simply didn’t,” Bryant said.
Less than three weeks after the “get on it hard” text, the office of State Auditor Shad White, a Bryant appointee and Bryant’s former campaign manager, arrested New and John Davis, former director of the Mississippi Department of Human Services. Prosecutors allege they conspired to steal welfare funds, including $2.15 million that New allegedly funneled to Prevacus.
After the splashy indictments, Bryant appeared surprised to learn that the pharmaceutical firm had received federal welfare funds. Five days later, he cut ties with the company.
Bryant’s backchannel maneuvering, uncovered by Mississippi Today’s investigation, raises questions about the governor’s personal agenda and influence over his welfare officials, which auditors say misspent at least $77 million in funds that were supposed to assist the state’s poorest residents.
Mississippi Today has reviewed hundreds of pages of written communication, which are reprinted here exactly as they appear without correction, between Gov. Bryant and his associates.
The trove of messages gives an indication of how far Bryant would go to help his friend Favre, who was trying to tap the state for resources to make himself a profit or to resemble a charitable alumnus of the University of Southern Mississippi.
Even after the auditor’s investigation into agency misspending forced the former welfare chief out of office, the MDHS director who Bryant appointed to replace Davis in 2019 told Mississippi Today that the governor called him to meet with Favre for possible funding opportunities.
Officials have not accused Bryant, Favre or Vanlandingham of a crime.
Davis and New, on the other hand, have pleaded not guilty and could face several years in prison – up to 10 years for Davis and hundreds of years for New – if convicted on all counts.
Taxpayers in Mississippi have nothing to show for their investment, which was supposed to pay for safety studies in the development of a new drug that still hasn’t materialized. What’s worse, state taxpayers will likely be on the hook to pay back all or some of the many tens of millions of dollars misspent in this overarching welfare scheme.
Vanlandingham has since sold his idea for the medication to Odyssey Group International, an acquisition company the scientist said he is now working with to conduct clinical trials for the drug. Prevacus, meanwhile, has gone dormant.
Early years
As early as 2014, Favre began working with Vanlandingham to find backers for a new concussion treatment drug that the Florida neuroscientist had in the works. Vanlandingham, who launched Prevacus in 2012, said he had developed a nasal medication called Prevasol that would reduce harmful brain swelling and inflammation after impact to the head, as well as a preventative topical cream.
For years Favre has raised public awareness about the epidemic of concussions, which he’s suffered from himself, but his conversations with the scientist about Prevasol revolved more around him making money. He once said by text that his goal was to walk away with $20 million.
The NFL legend from Kiln, Mississippi, invested nearly a million of his own money into Prevacus, he told Men’s Health magazine, but by 2018, with no physical product to speak of, he was becoming more desperate to get the pharmaceutical project off the ground.
Jake Vanlandingham, a Florida neuroscientist and founder of a biomedical startup called Prevacus, testified on June 25, 2014 before the Senate Special Committee on Aging about the effects of traumatic brain injury and his ongoing research. Prevacus became dormant in 2020 after officials arrested a Mississippi nonprofit director for allegedly stealing more than $2 million in federal grant funds to make investments in the company. Credit: C-SPAN
The athlete had an idea. Favre sent Vanlandingham a phone number for the governor – a “great guy good friend” – and told him to reach out. They spoke the next day and Vanlandingham congratulated Favre on his networking.
“Great call with the Governor,” Vanlandingham texted in late November 2018. “He’s going to make some key connections for us to start with FDA. Good job!!!”
“Don’t know if legal or not but we need cut him in,” Favre responded, followed three days later by another idea: “Also if legal I’ll give some of my shares to the Governor.”
In their earliest conversations and on Favre’s suggestion, Vanlandingham attempted to entice Bryant with company stock. But instead of asking the governor to make a personal investment, Vanlandingham offered Bryant shares in exchange for his help in connecting Prevacus with potential investors and carving paths to the nation’s drug regulation agency.
“We want you to know we want you on the team and can offer stock. We don’t know the rules but are willing to do what is needed to bring you on board,” Vanlandingham texted to Bryant in a group message with Favre on Dec. 6, 2018, a few weeks before their first meeting. “Grateful for your help!!!”
Late 2018
Vanlandingham, Favre, Bryant and others met for dinner at Walker’s Drive-In in Jackson the day after Christmas in 2018.
Bryant brought along New Orleans-based venture capitalist and developer Joe Canizaro, who had already started working with the governor on a real estate development and medical corridor on the Mississippi Gulf Coast called Tradition. Bryant is listed as vice president for the company Canizaro formed to develop the residential neighborhood called The Village at Tradition. Bryant considers the development part of his legacy as governor – a nursing school built there during his administration is named in his honor.
Real estate developer Joe Canizaro (left) and Gov. Phil Bryant (right) at Tradition Medical City in south Mississippi Credit:Phil Bryant Twitter
The concept was for Prevacus to locate its clinical trial site and eventually the drug manufacturing plant at Tradition, in turn boosting workforce and economic development for the state. However, the plans and proposals Prevacus drafted and sent to the governor’s office did not include projections related to job creation. Even if they had, that would be a project for the state’s economic development agency.
In 2020, Mississippi Today requested all communication from Mississippi Development Authority related to Prevacus or Vanlandingham for this time period. The agency said none existed. Instead, the financing would eventually flow through the Department of Human Services – which was increasingly contorting its mission to whatever they could call workforce development.
The morning after their dinner, Vanlandingham sent a message in the group text thanking the governor “for all you’re doing for us.”
“You’re the man!!!” the scientist wrote.
“So glad y’all were here,” the governor responded. “We have our orders and we are moving ahead. Will keep you informed.”
Favre then texted the touchdown analogy and Bryant promised to act as their lineman.
Graphic by Bethany Atkinson
The next day, Favre sent Vanlandingham the contact information for Nancy New, founder of the nonprofit Mississippi Community Education Center, and instructed the scientist to text her.
At the time, New’s nonprofit was on the receiving end of an unprecedented cash flow from the Mississippi Department of Human Services, the public assistance agency run by Bryant’s appointee John Davis.
The agency gave New more than $60 million in contracts to run the now disgraced anti-poverty program called Families First for Mississippi. The money primarily came from a federal grant called Temporary Assistance for Needy Families, or TANF, known for providing the “welfare check” to very poor families. Independent auditors found that New’s nonprofit blew at least $12.2 million and have been unable to trace an additional $40 million that it spent. New and Davis are both awaiting trial in what officials regard as the largest public embezzlement scheme in state history.
Favre was at least somewhat knowledgeable about the sizable grants New controlled and the flexibility around spending them, his text messages show.
In the two years before this, New’s nonprofit had already paid $1.1 million in grant funds to Favre – which the state auditor demanded he repay – to promote the Families First program. The nonprofit also, at the football player’s request, paid $5 million to Southern Miss Athletic Foundation so it could build a volleyball stadium at the university – Favre’s alma mater and where his daughter played volleyball. Auditors say both of these payments violated federal regulations, though neither have resulted in criminal charges.
“Text Nancy and include me if you want and basically ask her if she can help with investors, grants or any other way possible,” Favre texted Vanlandingham. “She has strong connections and gave me 5 million for Vball facility via grant money. Offer her whatever you feel like. She may can help but won’t hurt to ask. Look her up. She has a facility called family first in Jackson.”
For at least two years prior to this, Favre and Vanlandingham had texted back and forth, at some points almost daily, and most of their conversations revolved around brainstorming prospective investors and funding sources. But it wasn’t until two days after their meeting with the governor that Favre connected the scientist with New.
“Hey Nancy, I’m friends and colleagues with Brett Favre,” Vanlandingham texted New. “… We are working with the Governor to bring some human trial sites and drug manufacturing to MS. Not sure if we can find some synergy but would love to find out.”
After an initial conversation, Vanlandingham expressed high confidence in New.
“I’m going to venture out on a limb and say of all the times you’ve helped me the key contact that gets us over the top will end up being Nancy New. Thx brother she’s great,” he wrote to Favre.
Favre told Vanlandingham he believed New and Davis, the director of Mississippi Department of Human Services, “would use federal grant funds for Prevacus.”
January 2019
In this Oct. 31, 2010, file photo, Minnesota Vikings quarterback Brett Favre rubs his eyes after being hit by New England Patriots linebacker Gary Guyton during the first quarter of an NFL football game in Foxborough, Mass. Favre played a major role in welfare spending in Mississippi. (AP Photo/Winslow Townson, File)
A few days later, Favre hosted a meeting at his house to introduce Vanlandingham to New and Davis. In a calendar entry obtained by Mississippi Today, Davis wrote that the governor and Favre requested the meeting, which was originally to take place at New’s office. But due to bad weather preventing a flight from Hattiesburg to Jackson, texts show, Davis and New drove to the football player’s south Mississippi mansion instead.
During the Jan. 2, 2019, meeting, the group struck a deal for New to direct some of her nonprofit’s grant funding to aid Prevacus in its drug development, according to texts and interviews. From then on, Vanlandingham referred to the funding he received from New as Mississippi grant funding, not a private donation or investment.
Vanlandingham told Mississippi Today he always understood New and Davis were helping Prevacus obtain public money, and that he thought of New as a representative of the state.
“The idea was that the state of Mississippi was getting involved and MCEC (Mississippi Community Education Center) is the arm that signed the contract,” Vanlandingham said recently. “The goal was and still is to conduct clinical trials and bring new biotech ventures to Mississippi.”
The day after the meeting at Favre’s house, Vanlandingham texted the governor to let him know how well it went.
“Governor, we had a great meeting with Nancy New and John Davis. We are excited to be working together !!!” he said. “Thanks.”
The governor didn’t express surprise to hear they’d met.
“Very good..” the governor said.
Days later, Bryant set up a call for Vanlandingham with Rick Santorum, former U.S. senator from Pennsylvania and failed presidential candidate, who said he would contact the “second in command” of the U.S. Food and Drug Administration on behalf of Prevacus, according to a text message from Vanlandingham to Favre. After the call with Santorum, Vanlandingham thanked the governor.
“You did great by us my brother,” Vanlandingham wrote to the governor.
“Had to open a whole (sic) in the line..” Bryant said.
“It was wide enough for even favre to walk through,” the scientist responded.
The NFL star also texted with Santorum, who told the athlete he was “excited about the project and getting the chance to work w great folks like you and Jake,” according to a text screenshot Favre sent Vanlandingham.
In mid-January, Favre suggested lavishing New and Bryant’s welfare director in exchange for the funding Mississippi’s welfare agency was providing them.
“This all works out we need to buy her and John Davis surprise him with a vehicle I thought maybe John Davis we could get him a raptor,” Favre texted Vanlandingham, referring to the souped up Ford F-150.
Favre then asked his partner when he thought they would start earning money. The scientist said they could start selling equity shares to the public in under a year, and the goal was for them to own 30% of the company by that time.
“The governor/Nancy/joe can be key in bringing us funds in for project development and not diluting our percentage ownership,” Vanlandingham wrote.
The next day, Vanlandingham texted Gov. Bryant a series of updates, including that Prevacus was “working with Nancy New” on funding its first phase of trials.
“Great report,” Bryant responded. “We will get this done.”
This May 4, 2017 photograph, shows Nancy New, owner and Director of the Mississippi Community Education Center (MCEC) and New Learning, Inc., at a social function in Jackson, Miss. New is facing several criminal charges related to her use of federal welfare funds in Mississippi. (Sarah Warnock/The Clarion-Ledger via AP)
New sent the first payment of $750,000 to Prevacus on Jan. 18, according to prosecutors, though the $1.7 million contract between Prevacus and Mississippi Community Education Center wasn’t signed until Jan. 19. In the agreement, the drug company promised to use the funds to finalize development of the nasal application and conduct safety studies. In exchange, the nonprofit would get to pick the location for clinical trials and have exclusive rights to the manufacturing of the drug.
But over the course of the next year, prosecutors say Nancy New and her son and assistant Zach New diverted funds from the nonprofit to Prevacus and its spinoff company PreSolMD, not as a philanthropic grant, but as a personal investment. PreSolMD claimed it was developing a cream to prevent concussions. Prosecutors produced a physical stock agreement to back up their allegations that the News intended to profit off of welfare money.
February 2019
Throughout 2019, while Bryant’s welfare department and the Families First for Mississippi program was bleeding funds and providing the state virtually no bookkeeping, Bryant texted with Favre and Vanlandingham about the company’s progress.
“We couldn’t be more happy about the funding from the State of MS,” Favre texted the governor in early February. “In fact Nancy New is going to meet with Joe (Canizaro) at Tradition the following week.”
Bryant responded to this text by urging Favre to keep looking for funding. He also said he would let the athlete know when he found them a partner.
To explain Bryant’s claim that he was unaware Prevacus was receiving state funds, the former governor said he didn’t read the text carefully enough. Bryant said he was often so busy he didn’t register the content of messages people sent when they wanted something from him. He said he often shot back canned responses without much thought.
“I just simply did not carefully look at those texts and realize the intent in them,” Bryant said. “And I know that’s hard to believe and I know people read it and say, ‘Well, of course he knew,’ but I’m telling you, I just did not realize the details within those texts.”
Canizaro told Mississippi Today that he did not recall Vanlandingham or Favre saying they had secured public grants during their conversations about Prevacus. The 85-year-old developer also said he did not remember meeting New.
Graphic by Bethany Atkinson
Favre’s friendly relationship with the governor ensured he and his business partner maintained Bryant’s ear.
“Keep me close with the governor,” Vanlandingham texted Favre.
Favre also remained in contact with director Davis. A couple months after their meeting, Favre told Davis that he still “owed” $1.1 million on his commitment to help build the new volleyball facility at the University of Southern Mississippi.
“Any chance you and Nancy can help with that?” Favre texted Davis. “…You and Nancy stuck your neck out for me with jake and Prevacus I know and that’s going to turn out very good I believe.”
In April, the governor contacted the Hattiesburg military post Camp Shelby on behalf of Prevacus, texts show, after Vanlandingham posed the idea of securing funding from the U.S. Department of Defense to test the concussion drug on National Guard trainees.
“Will pave the way..” Bryant wrote.
Vanlandingham texted three days later to tell Bryant and Favre that his call with Camp Shelby’s commander was a success and that they’d scheduled another briefing. He thanked the governor.
“Like I’ve said Jake,” Favre texted, ‘The Governor can get done.’”
“Just making holes in the line,” Bryant responded.
July 2019
By July, however, the investigation into Davis and MDHS spending had begun and Vanlandingham was having a harder time getting clear answers from New about when they could expect to receive their next installments of grant funds.
John Davis, former director of the Mississippi Department of Human Services, was arrested in 2020 within what officials have called the largest alleged public embezzlement case in state history. Credit: MDHS Twitter
At the same time, Favre continued to complain to Vanlandingham about his “debt” in the volleyball facility, which he expected New and Davis to pay off.
Favre was worried about the lack of cash flow, previously telling Vanlandingham he was “not sure if Nancy and John can keep covering for me.”
The scientist and Favre were also trying to get New to invest in the separate concussion cream project, but the welfare well seemed to be drying up.
The athlete turned to Bryant.
“Hey Governor we are in a little bit of a crunch,” Favre wrote in mid-July 2019. “Nancy New who is wonderful and has helped me many times was gonna fund this pregame cream that we can be selling really soon. Well she can only do a small portion now. Jake can explain more but bottom line we need investors and need your direction.”
“Will get with Jake..” the governor responded, “will help all I can.”
By the end of that month, Bryant had replaced Davis as director of MDHS with former FBI Special Agent Christopher Freeze.
“I heard John Davis retired. Shit!!!” Vanlandingham texted Favre in August of 2019.
He asked Favre about the “new guy” Freeze.
“Nancy said he ain’t our type,” Favre wrote.
“Fuck,” Vanlandingham responded. “Well we may need the governor to make him our type.”
Freeze recently told Mississippi Today that after Bryant appointed him to take over the welfare department, they discussed the ongoing investigation and the governor always implored Freeze to “do the right thing.”
Around the same time though, Freeze said Bryant called him to his office to meet with New and Favre so they could pitch Freeze on a project related to the University of Southern Mississippi that they wanted MDHS to fund. Freeze said he couldn’t remember the details of the project, but the conversation didn’t go far because the director told New that MDHS had implemented an official bidding process, called a Request for Proposals – a standard government practice that MDHS hadn’t followed since 2012.
Freeze said he told New and Favre that if they wanted an MDHS grant, they’d have to submit a proposal and the department would score it. After the meeting, Freeze said, New asked if she could come by his office to get the ball rolling on the project. He told her, “No.”
In the six months Freeze was head of Bryant’s welfare department, he said the discussion about the project New and Favre proposed to MDHS was the most substantive conversation he had with the governor.
Between requests for funding for the volleyball facility and the concussion project, Vanlandingham and Favre tried to tread delicately to make sure they weren’t badgering their benefactors. Their communication suggests that the governor – at least they perceived – was the one with the power to bestow them with public funding.
“I know you’re stressed about USM money from governor for volleyball facilities,” Vanlandingham texted Favre in mid-October. “We still need the last 380k agreed for Prevacus too. Is there a play left with governor or should we let it go? Should I contact Nancy New or does that mess u up?”
“Ask Nancy if that’s something the Governor can ok,” Favre responded.
“He is about out,” Vanlandingham wrote, referring to the end of Bryant’s term. “May be better for us when he is.”
December 2019
By December 2019, as Bryant neared his last month as governor, he began talking more seriously about elevating Prevacus, telling Vanlandingham that Canizaro was interested in investing $100,000. He was also working with former President Donald Trump’s White House to host a summit about youth brain safety featuring Prevacus.
Bryant told the scientist, “Trump love us.”
Vanlandingham asked Bryant by text in early December, “Governor can we bring you onboard with ownership now?”
The scientist and governor did not discuss, at least by text, Bryant investing his own funds into Vanlandingham’s venture. The conversations involved Bryant becoming a shareholder in exchange for the help he provided as governor and planned to provide after his term.
“Cannot till January 15th,” Bryant wrote, referring to his first day out of office. “But would love to talk then. This is the type of thing I love to be a part of. Something that save lives…”
A week before Bryant finished his term in office, Favre again encouraged Vanlandingham to offer the outgoing governor “a package that will get him determined to see it through.”
Bryant was about to announce his leap to Bryant Songy Snell, the lobbying firm his former chief of staff Joey Songy created a few months before his term was up. Canizaro has had Bryant on retainer ever since, the developer told Mississippi Today, specifically to recruit businesses to Tradition. Canizaro recently renewed Bryant Songy Snell’s contract, even though he said he “really wasn’t anxious to renew because they had brought nobody to the table.”
“But he’s a friend and he asked me to give him some more time,” Canizaro said. “He’s been working on several deals and that’s why I extended the agreement, but to date he’s landed nobody.”
Canizaro said he didn’t think it would be appropriate, when asked, to share the amount of the former governor’s contract.
According to text messages, it appears one of Bryant’s first tasks in his new role as a private consultant was to bring Prevacus to Tradition. On Jan. 16, 2020, two days after leaving the Mansion, Bryant began plotting his next meeting with the scientist.
“Now that you’re unemployed I’d like to give you a company package for all your help,” Vanlandingham texted. “Let me know when you come up for air but know we want and need you on our team!!!”
“Sounds good. Where would be the best place to meet. I am now going to get on it hard…” the former governor responded.
In a text with another Prevacus partner, Vanlandingham indicated his intent was to “cut an equity deal with the governor to join prevacus/PreSolMD.”
Vanlandingham, who defended the governor and his dealings with him, told Mississippi Today that Bryant never ended up obtaining shares in his company.
“The governor was always straight up. There was never any stock exchanged. There was never any money exchanged. He just wanted to help,” Vanlandingham said. “And we never did a deal for him to come on with his consulting firm and that could be because this (the arrests) happened. We were probably working towards having the governor, post-governorship, help us, and I think that would have been great.”
Bryant maintains that he never intended to accept the shares Vanlandingham offered on three occasions.
“I think that the important part here: Would I trade a future with this firm, would I give up 30 years of integrity over some paper? Over some stock of a company that barely existed? Why would I do that? I’d have to be out of my mind to do that.”
After he left office, Bryant spoke with Prevacus, as he said he would, but he told Mississippi Today that his instincts told him not to move forward. “At the end of the conversation, I said, ‘No. Nope. This would not be the right thing to do, and I’m not going to be a part of it.’”
But Bryant’s texts paint a different picture about his departure from Prevacus. In reality, he talked about helping Vanlandingham all the way up until the arrests.
February 2020
On Feb. 4, 2020, Bryant scheduled a meeting for Feb. 12 at Tradition, where Vanlandingham could pitch Canizaro on investing in Prevacus. Bryant wrote: “If Brett could come it would seal the deal.”
Meanwhile, on the same day, officials in Hinds County were filing indictments against Bryant’s former welfare officials.
Before Bryant and Vanlandingham had a chance to meet again and “seal the deal,” as Bryant put it, the state auditor’s office arrested New, Davis and four others the next day.
White investigated the case and did not turn information over to the FBI until it made the arrests, according to the local U.S. Attorney’s Office at the time. The auditor has explained that his office made the arrests as soon as it had enough evidence against the welfare officials in order to stop the flow of funds out of MDHS.
The federal government, on the other hand, has brought no charges. It’s unclear if a federal investigation into the welfare scandal is ongoing, as both the Jackson offices of the FBI and U.S. Attorney’s Office would not comment. Bryant told Mississippi Today he has not been interviewed by state or federal investigators.
Since the 2020 arrests, White has called Bryant the whistleblower in the case – though the fraud tip White says Bryant turned over to his office pertained to a small portion of the larger welfare scheme, according to Mississippi Today’s review of early investigative materials and interviews. Bryant claimed in texts he sent after the arrests that he was unaware Prevacus had received welfare funds.
“Is this your company mentioned in the second paragraph?” Bryant texted Vanlandingham on the day of the arrests with a screenshot of a news article.
Vanlandingham said yes, that he’d been subpoenaed and “just gave them everything.”
“Not good…” Bryant wrote.
Five days later, after a tidal wave of news coverage about the scandal, Bryant texted Vanlandingham to abruptly cut ties with the company.
“I was unaware your company had ever received any TANIF funds,” Bryant texted at 8:37 a.m. on Feb. 10, 2020. “If some received anything of benefit personally then Legal issues certainly exists. I can have no further contact with your company. It is unfortunate to find ourselves at this point. I was hoping we could have somehow helped those who suffer from Brain Injuries. This has put that that hope on the sidelines.”
That same morning, Auditor White appeared on a conservative talk radio show that is broadcast statewide to reveal the identity of the whistleblower in the welfare scandal.
“That person in this case was Governor Phil Bryant,” White said. “He said he was comfortable letting that information out now.”
This is Part 1 in Mississippi Today’s series “The Backchannel,” which examines former Gov. Phil Bryant’s role in the running of his welfare department, which perpetuated what officials have called the largest public embezzlement scheme in state history.