



Arizona Attorney General Kris Mayes concluded there was insufficient evidence to criminally charge Gov. Katie Hobbs over a $4 million rate increase awarded to Sunshine Residential Homes, the state's largest foster care contractor, whose owner and associates had donated more than $580,000 to Hobbs and Arizona Democrats. Hobbs maintains she never discussed the rate hike with staff, though her predecessor's DCS director had resisted the same request before being replaced.
Top staffers under the new director reportedly discussed the donations before approving the increase, though Mayes found no evidence tying that discussion directly to Hobbs. Republicans including Rep. Andy Biggs and Senate President Warren Petersen have called the findings a whitewash and a cover-up, without offering new evidence of their own.
Hobbs has declined to disclose her inaugural and legal fund donations beyond what is legally required and refused an in-person interview with investigators, telling reporters 'I'm not going to get into this with you.' Separate investigations by the state Auditor General's Office and Arizona House Republicans, the latter aided by a Trump-connected attorney, remain ongoing.
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