Arizona AG declines to charge Gov. Katie Hobbs over pay-to-play allegations

Arizona Attorney General Kris Mayes announced on Friday that state prosecutors have declined to file criminal charges against Arizona Governor Katie Hobbs in connection with allegations of a pay-to-play scheme involving a group home company. The company, Sunshine Residential Homes, received a rate increase from the state after contributing $100,000 to Hobbs' inaugural celebration in 2022.

Mayes stated that the investigation uncovered no evidence of the necessary quid pro quo to support a bribery charge. However, Mayes emphasized that the investigation revealed a need for legislative reform to increase transparency around political donations. The Democratic governor has denied any wrongdoing, asserting she was not involved in the decision to grant the rate increase.

Her Republican opponent, U.S. Rep. Andy Biggs, has used the investigation as a political issue in his campaign. The situation has become a potential political liability for Hobbs as she seeks a second term. Sunshine Residential Homes, which operates 28 group homes in metropolitan Phoenix, received a 30% rate increase for its beds in 2023 after initially being denied.

The company also contributed $200,000 to the Democratic Party in the months leading up to Hobbs' gubernatorial election.