Patricia Todd tweeted that she had "heard for years" that Ivey was gay.
The governor of Alabama wants you to know she is absolutely, totally, 100 percent not gay.
Ivey's office responded to the allegations in a press release.
Ivey, 73, is single and has been divorced twice.
"This is a disgusting lie being pushed by a paid liberal political hack", Hancock said.
The Ivey campaign is vigorously denying the accusation.
She also said the grants awarded to Free2Be were federally mandated and that the money came from criminal seizures, and not taxpayer dollars. She succeeded to the office of governor in 2017 after Robert Bentley resigned, pleading guilty to campaign-finance violations related to an alleged extramarital affair he had with a former staff member.
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Ivey signed the so-called Child Placing Agency Inclusion Act, which enshrines discrimination into Alabama law by allowing some state-licensed adoption and foster care agencies to reject qualified prospective LGBTQ adoptive or foster parents based on the agency's religious beliefs.
Ivey also voted for alleged pedophile Roy Moore in the Alabama State Supreme Court battle. "I chose to run for governor of the state of Alabama because I thought we could do better".
"I am really disappointed in that level of attack", said Public Service Commission candidate Robin Litaker.
"I was reminded of how broke we are", Dawson said of the discovery, noting that the state has a lack of funds, said during the speech.
"If people feel that way, that is extremely sad", Todd added.
"I certainly don't agree with the agenda or the values of that organization", Ivey said earlier Tuesday when speaking with reporters in Tuscaloosa about the LGBTQ group Dawson brought to attention. "I think it's going to be damaging to our state for a long, long time".
"The views espoused by Free2Be, nor the extension of a grant to the program, do not represent Governor Ivey's personal views and simply represent a requirement and demand from the federal government", the statement from Ivey's office read.