Arizona Governor Facing Racketeering Probe Runs From the Media

The Arizona Attorney General’s Office, led by Kris Mayes (D),  is investigating allegations of a “pay-to-play” scheme involving Governor Katie Hobbs (D), her inauguration fund, and the Arizona Democratic Party.

The investigation follows reports that Sunshine Residential Homes, a group home operator, donated a large sum to Hobbs’s inauguration and the Democratic Party shortly before receiving a significant rate increase for its services.

While the Attorney General’s Office is leading the state-level investigation, some reports also mention the Maricopa County Attorney is looking into the company’s potential benefit from the donations.

• The accusation: The core allegation is that Sunshine Residential Homes Inc. received a rate increase because of substantial donations it made to the governor’s inauguration fund and the Arizona Democratic Party. “The state agreed to increase Sunshine Residential’s pay by 30 percent, or $4 million per year, despite warnings the rate increase was projected to exacerbate a projected $13 million funding shortfall.”
• The timeline: Sunshine Residential Homes was denied a rate increase in December 2022, but donated $100,000 to Hobbs’s inauguration campaign as a “gold sponsor” three days later. In 2023, the company received a large rate increase.

Sunshine Residential’s $100,000 contribution was the second largest to Hobbs’ 2023 inauguration fund. The Arizona Republic revealed last year that gift was part of a political spending campaign of more than $400,000.

That reporting prompted two ongoing investigations, as reported by the Desmoines Register:

“Arizona Attorney General Kris Mayes and Maricopa County Attorney Rachel Mitchell, whose office is working with the Arizona auditor general, are continuing their probes of the situation that Republican lawmakers charged was a pay-to-play scandal involving the Democratic governor.”

Here it is:

Katie Hobbs is now being investigated for bribery, fraud, conspiracy and racketeering.

The Chairman of the Joint Legislative Committee has informed Maricopa County's investigator that the Auditor General will assist in the investigation.

This comes after The… pic.twitter.com/Ad7TxXijnR

— 🇺🇸RealRobert🇺🇸 (@Real_RobN) November 11, 2025

In a video posted on social media, Hobbs is seeing running from reporter who says, “why won’t you take any questions, it’s been four weeks since you have had a gaggle, governor…why are you avoiding the public? Why are you avoiding the press, governor?

In a prior statement to Axios, Hobbs spokesperson Christian Slater said: “Just like past investigations instigated by radical and partisan legislators, the administration will be cleared of wrongdoing. It would be outrageous to suggest her administration would not do what’s right for children in foster care.”

Hobbs recently launched her reelection bid for Arizona Governor and will face the winner of a crowded Republican primary.