Arizona Democratic Gov. Katie Hobbs, who barely pulled off a victory against GOP challenger Kari Lake in 2022, admitted during a recent live television interview that she is currently the subject of an investigation concerning a pay-for-play scheme. The allegations against Hobbs first arose in 2024, when Arizona Attorney General Kris Mayes, who is also a member of the Democratic Party, started the probe.
The investigation is centered around a home operator that works for the Arizona Department of Child Safety, which was given a substantial increase in state funding while pay increases to other providers were denied. The ADCS approved a 60% increase in the rate Sunshine Residential Homes Inc. charges to provide care for a child for the day.
As it turns out, Sunshine Residential Homes donated a whopping $400,000 to Gov. Hobbs and the Democratic Party between 2022 and 2023. Prior to that time frame, the company had no history of making political donations. Simon Kottoor, the CEO of Sunshine Residential Homes, was a member of Hobbs’ inaugural committee. Hobbs heaped praise on the company while on the campaign trail.
According to media reports on the matter, the attorney general opened a criminal investigation into the allegations back in June 2024 after GOP State Sen. T.J. Shope asked Mayes to look into a potential “pay for play” scheme. “The Criminal Division of the Attorney General’s Office is statutorily authorized to investigate the allegations and offenses outlined in your letter,” Mayes’ office reportedly went on to write in a letter to Shope. “To that end, the Attorney General’s Office will be opening an investigation.”
Along with the criminal investigation launched by Mayes, the Arizona legislature, under Republican control, also opened a probe of its own in November 2025. Speaker of the House Steve Montenegro put together an advisory team of GOP lawmakers to lead their investigation into the matter. During an interview with KPNX, Hobbs was asked about the probes.
“Have any of Kris Mayes’ investigators talked to you?” the reporter asked the governor. She responded to the question by saying that none of those looking into the matter have reached out to her. The reporter followed up by asking if any members of her staff have been questioned. “Yes, they have. So that investigation is ongoing.” Hobbs replied.
Hobbs has previously hand-waved away the House inquiry into the potential scheme, labeling it nothing more than a “shameless stunt” put together by “extremist legislators.” She then stated she expects to be fully cleared of all charges. Other reports on the situation have stated that this scheme means “potentially millions of dollars more going to the company at taxpayers’ expense.”
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Shope stated that he hopes investigators will do a thorough job of looking into the matter. “I hope that they will do a fine job and actually go through fairly, through the entire process, and completely thoroughly as well.” Shope, along with several other Republicans, have requested that Maricopa County Attorney Rachel Mitchell, who is also a member of the GOP, open another investigation to get to the bottom of the situation.
Featured Image: screenshot from embedded video