KISSIMMEE — Kissimmee Mayor Jackie Espinosa was arrested Wednesday morning after an internal city investigation led to criminal charges alleging she improperly obtained and kept pandemic-relief grant money intended for small businesses.
Arrest, charges and context
Law enforcement detained Espinosa shortly after 8 a.m. as she drove away from her home, asked her to step from the vehicle, placed her in handcuffs and booked her into the Osceola County Jail, according to local media reports. She pleaded not guilty following the arrest.
Prosecutors have charged Espinosa with one count of grand theft involving between $20,000 and $100,000, a second-degree felony, and one count of organized scheme to defraud involving $50,000 or more, a first-degree felony. Those allegations stem from the city’s internally reviewed Business Boost 2.0 grant program, which used American Rescue Plan Act (ARPA) dollars to provide one-time assistance to eligible small businesses.
Allegations tied to family businesses
According to the arrest affidavit cited by WFTV, prosecutors say Espinosa helped create the Business Boost 2.0 program and then applied for grants that benefited businesses owned or controlled by immediate family members. The affidavit lists three companies that received payments in November 2025. The state alleges the mayor refused to return the funds after the city attorney notified her on Dec. 5 that accepting the awards created a prohibited conflict of interest.
| Business | Amount received |
|---|---|
| Adanse LLC | $20,000 |
| Kissimmee Diner Inc. (Matador Tacos & Tapas) | $15,000 |
| The Real Estate Gallery LLC | $15,000 |
Responses and next steps
Espinosa’s attorney, Migdalia Perez, issued a statement denying any criminal intent and saying the mayor maintains her innocence. Perez said the grant program was publicly approved and administered by city staff, not a scheme to steal taxpayer money, and that they plan to contest the charges in court.
"This case involves a publicly approved grant program administered by City staff, not a secret scheme to steal taxpayer money," Perez said. "We intend to challenge these allegations vigorously in court."
Florida Attorney General James Uthmeier announced the arrest at a news conference and posted on social media that "public officials do not get to write the rules and then write themselves a check," asserting that ARPA funds were intended to help small businesses, not to enrich the mayor.
"Public officials do not get to write the rules and then write themselves a check," Uthmeier wrote on social media.
What the allegations mean locally
The charges mark a significant development for Kissimmee, a city that used federal relief dollars to bolster small enterprises during the post-pandemic recovery. If proven, the alleged conduct would represent a misuse of funds that were allocated specifically to support local businesses that qualified under the program’s rules.
City officials, at least publicly, have not released a detailed timeline of the internal investigation or an explanation of remedial actions taken after the city attorney’s Dec. 5 notification referenced in the affidavit. The arrest means the criminal case will proceed in the courts, where prosecutors must prove the elements of the charged offenses beyond a reasonable doubt.
Practical information for residents
Residents and business owners with questions about the Business Boost 2.0 program or ARPA-funded initiatives should contact the City of Kissimmee’s finance or economic development offices. Anyone who applied for or received funds and is unsure of their status may seek guidance from city staff or legal counsel to understand potential obligations or remedies.
- Grants in question were approved Nov. 4, 2025, with funds deposited Nov. 7, 2025.
- Espinosa was notified by the city attorney on Dec. 5 that accepting the grants created a conflict of interest.
- The mayor pleaded not guilty and intends to contest the allegations in court.
The case will likely draw continued local and state attention as prosecutors and defense counsel prepare for pretrial proceedings. For Kissimmee voters and officials, the unfolding legal process raises questions about oversight of federal relief funds and ethics rules that govern elected officials' participation in programs they help design or oversee.
Reporting by Javier Castellanos. Additional reporting from WFTV and state attorney announcements was reviewed for this article.
