Arizona Gov. Katie Hobbs, a Democrat seeking re‑election, is under investigation for an alleged pay‑to‑play scheme that investigators say will be resolved before voters head to the polls in November. The probe is being led by Arizona Attorney General Kris Mayes, also a Democrat, who has told reporters the inquiry is “near the end” and that she is “confident that we’re going to get the information that we need to conclude the investigation.”
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A woman waves onstage in front of an Arizona state flag at a campaign event — image suitable to illustrate coverage of a pay‑to‑play corruption probe involving Arizona’s governor during the election.
The investigation focuses on the relationship between Hobbs and Sunshine Residential Homes, a group‑home operator that received a substantial rate increase from the Arizona Department of Child Safety (DCS) after making large political contributions. Records show Sunshine donated $100,000 to Hobbs’ inaugural fund in December 2022 and $200,000 to the Arizona Democratic Party shortly before the 2022 election. Company leaders also had direct ties to Hobbs’ inauguration and campaign: the CEO served on Hobbs’ inaugural committee, personally contributed to the governor’s campaign and the company presented Hobbs with an award in the run‑up to the 2022 election.
According to available information, Sunshine’s request for a large rate increase was denied before the donations were made and was approved after the contributions were received. Investigators are examining whether the donations and the subsequent approval of the rate change were linked. It has not been made public whether Hobbs will be interviewed by the attorney general’s office as part of the probe.
The attorney general conducting the probe, Kris Mayes, has drawn scrutiny of her own stemming from financial ties to national Democratic organizations. Public filings show that on Sept. 5, 2023 — roughly one year after Mayes took office — the Democratic Attorneys General Association (DAGA) sent $50,000 to Mayes’ legal fund. That payment followed an agreement between the AG’s office and the States United Democracy Center (SUDC), a nonprofit aligned with Democratic interests that shares executive committee members with DAGA. The first DAGA payment also came near the time the AG’s office opened a grand jury investigation into Arizona’s presidential electors.
Eighteen months after the initial DAGA contribution, records indicate the association provided a second payment of $150,000 to Mayes’ legal fund. That larger payment occurred one month after the arrest of more than a dozen supporters of former President Donald Trump who were accused of conspiring to overturn Arizona’s 2020 election results. An assistant attorney general has disputed a connection between DAGA and SUDC but did not dispute the timing of the payments. The indictments against the Trump supporters were later dismissed.
Hobbs will face Republican U.S. Rep. Andy Biggs in the November general election. As the campaign enters its final months, Hobbs has declined to debate her opponent, a position she also took in 2022 when she declined to debate Republican Kari Lake. At that time, Hobbs proposed separate televised interviews hosted by the Clean Elections Commission rather than a traditional debate; when the commission declined to host those split interviews, she opted not to participate in a head‑to‑head debate, saying she would not subject herself to “constant interruptions, pointless distractions, and childish name‑calling.”
A woman speaking behind a lectern reading 'Election Night 2022' at a party event — usable for reporting on the ongoing investigation into Arizona’s governor as voters head to the polls.
For this election cycle Hobbs has again declined to debate, saying she will tour the state to speak directly with constituents. The Biggs campaign has said its candidate will participate in a debate scheduled for Oct. 6. The two candidates are slated to appear separately at a public safety policy forum hosted by the Arizona Police Association on Aug. 25.
As she seeks to hold the governor’s office in a state that leans Republican, Hobbs has been reported to be considering former Mesa Mayor John Giles, a Republican, as her running mate. Those reports describe the move as an effort to broaden electoral appeal in a traditionally red state.
Officials leading the investigation into Hobbs have signaled they intend to complete their work before the election. Mayes told reporters she is “confident” the office will obtain the information necessary to conclude the probe, and indicated results would be delivered prior to voters deciding whether to re‑elect the governor. At present, Hobbs is the only sitting governor identified in public reporting as being investigated on allegations of pay‑to‑play corruption tied to campaign donations and subsequent state funding decisions.
Upcoming campaign events and legal developments now intersect with the timeline of the probe. The debate on Oct. 6 and the Arizona Police Association forum on Aug. 25 are among the scheduled public appearances where the candidates will address voters separately or together. Separately, the attorney general’s office and state agencies involved in the rate‑setting decisions for group homes are among the entities whose records and actions are under review as the investigation moves toward its stated conclusion.
Updated reporting reveals Attorney General Kris Mayes requested a formal interview with Gov. Hobbs in April, but none has occurred months later. Mayes defended the probe's pace in recent interviews, saying no one can "blow off" her office, yet declined to confirm whether Hobbs would be questioned before concluding the investigation. (AZFamily, Arizona Republic)
Reporting by The Arizona Republic found the Department of Child Safety ultimately approved what amounted to roughly a 60% increase in the daily rate Sunshine charged — the largest per‑child rate in the state and, in the period reviewed, the only provider to receive a raise — a change that amounted to millions in additional state payments.
Arizona House Republicans hired outside counsel in early February 2026 — Justin Smith of the James Otis Law Group — to conduct an independent review of the Sunshine/DCS rate decision, according to reporting by KJZZ.
State officials told reporters that the rate increase was approved in May 2023 after Sunshine warned it would prioritize beds for a federal refugee resettlement program if it did not receive higher pay; agency spokespeople and then‑DCS leadership said they feared losing critical bed capacity, per reporting by KJZZ and ABC15.
Public records cited by Axios and The Arizona Republic show Sunshine’s $100,000 contribution to an inaugural fund was recorded in February 2023 shortly after the company’s initial rate‑increase request was denied, with the timing of those filings central to investigators’ timeline.