Katie Hobbs has assembled a long list of scandals as governor of Arizona.
Reports confirm that someone state officials wired $2 million in tax money to “scammers” who were impersonating a title company, her administration approved $700,000 in tourism logo and rebranding plans, appointed, without state Senator approval, 13 agency heads, endured a series of high-level resignations in state government, hired a “consultant” and assistant at a cost of nearly $600,000, and more.
Now there’s a new one: An investigation has been launched into an alleged pay-to-play scheme involving the governor and a company called Sunshine Residentail Homes.
The Arizona Legislature is conducting its own investigation into Gov. Katie Hobbs’ alleged pay-to-play scheme. State Sen. Jake Hoffman said they have issued a number of subpoenas for those involved to collect witness testimony, which will be heard at a hearing later this month.… pic.twitter.com/6ASau6sDzE
— KTAR News 92.3 (@KTAR923) September 17, 2026
State Sen. Jake Hoffman is issuing subpoenas in a wide-ranging investigation into pay-for-play allegations involving Gov. Katie Hobbs and Sunshine Residential.
More here: https://t.co/0AvM6dDHNG pic.twitter.com/P3k41bD2Fr
— ABC15 Arizona (@abc15) September 17, 2026
A report at RedState explained it allegedly involves “swapping a very generous political donation for a big rate increase, making Sunshine the highest-paid operation of its kind in the state.”
Now former Arizona Supreme Court Justice Andrew Gould has been named special counsel in the state Senate’s investigation of Attorney General Kris Mayes’ decision not to prosecute Hobbs over allegations of a pay-to-play scheme.
Both are Democrats.
The report said, “The primary facts remain: Sunshine delivered on a big campaign donation, then was awarded a fat rate hike. That’s kind of hard for even a Democrat to just wave away.”
According to the Center Square, the new investigation was announced by Arizona State Sen. Jake Hoffman.’
Sunshine Residential Homes are group homes for children and youth in the foster care system.
Hoffman said the corporation’s executives and others allegedly contributed more than $500,000 to benefit Hobbs, her political operations and various funds.
“Following these contributions, Hoffman said Sunshine received per-child rate increases (a 56% hike), making them the highest-paid group home provider in Arizona, despite internal staff noting no increase was necessary,” the report said.
“Political donations went in, taxpayer-funded rate increases came out, all to benefit a key donor to Katie Hobbs,” said Hoffman, chairman of the Senate Committee on Government. “What we have seen has every appearance of a pay-to-play corruption scandal at the highest levels of our state government.”
A spokesman for Hobbs’ campaign said it’s all political.
Hobbs already has been delivered a subpoena directing her to appear before the Senate Government Commission later this month.
