Arizona Attorney General Declines to Charge Governor Hobbs Over Alleged Pay-to-Play Deal

Arizona Attorney General Kris Mayes announced that Governor Katie Hobbs will not be criminally charged in connection with allegations that a $100,000 contribution from Sunshine Residential Homes to her inaugural celebration was linked to a later state rate increase for the group-home provider. Sunshine, which also gave $200,000 to the state Democratic Party and $100,000 to the party in August 2023, was the only company to receive a 30% per-bed rate boost during the 2022-2023 contracting period.

Hobbs maintains she had no role in the decision, and Mayes said the investigation failed to uncover the quid-pro-quo needed for a bribery prosecution. The AG urged the GOP-controlled Legislature to adopt reforms for greater disclosure of political donations by state contractors. A parallel investigation by Maricopa County Attorney Rachel Mitchell and the state auditor general remains open, while the company faces separate scrutiny over the 2022 death of a foster child, Jakob Blodgett, at a Sunshine home.