(Just The News)—There will be a formal legislative investigation into Democratic Gov. Katie Hobbs regarding the Sunshine Residential controversy and subpoenas for Hobbs to appear before the state Senate at the end of the month went out, Arizona State Sen. Jake Hoffman announced.
Sunshine Residential Homes are group homes for children and youth in the foster care system.
Speaking in a Wednesday press conference, Hoffman, a Republican, said Sunshine Residential executives and connected individuals allegedly contributed more than $500,000 to benefit Hobbs, her political operations and various funds.
Following these contributions, Hoffman said Sunshine received per-child rate increases (a 56% hike), making them the highest-paid group home provider in Arizona, despite internal staff noting no increase was necessary.
“Political donations went in, taxpayer-funded rate increases came out, all to benefit a key donor to Katie Hobbs,” said Hoffman, chairman of the Senate Committee on Government. “What we have seen has every appearance of a pay-to-play corruption scandal at the highest levels of our state government.”
The Center Square reached out to the governor’s office and was redirected to the Hobbs Campaign.
Campaign communications Director Michael Beyer said this is all political.
“With just 21 days until voting starts and Andy Biggs’ cronies realizing they are running out of time to change the trajectory of his floundering campaign, it’s no surprise a political consultant profiting from Biggs’ campaign is resorting to desperate political stunts to rescue him,” Beyer wrote in an email to The Center Square. “As has been made abundantly clear multiple times by public reporting and the Attorney General’s report, there was no wrongdoing by Gov. Hobbs, the Governor’s Office, or the Hobbs campaign.”
From now until Election Day, Beyer said that “Andy Biggs and his allies will use every trick in the book to distract from his disturbing record…”
A subpoena given to Hobbs told her that she is “commanded to appear” before the Senate Government Committee on Tuesday, September 29th at 11:00 a.m. local time.
The committee will meet in Hearing Room 1 of the Arizona Senate Building at the Arizona State Capitol.
“A legislative subpoena is not an invitation,” said Hoffman. “It’s not a letter that says we’d like to get together.”
Hoffman also wants information from Attorney General Kris Mayes, D-Arizona, adding the subpoenas seek testimony and documents from people with “direct knowledge of the contributions, the rate increases, the alleged cover-up and the investigation” that led to Mayes announcing in August 2026 that her office would not be charging Hobbs.
“If there’s nothing to hide, there’s no reason for Kris Mayes to hide the Hobbs files,” said Hoffman.
Richie Taylor, communications director for Attorney General Mayes, said this is nothing more than performative political nonsense at the taxpayers’ expense just weeks before an election.
According to Taylor, the Attorney General’s Office conducted a thorough and professional investigation into these matters after the Legislature referred them and found no evidence to support criminal charges.
“It’s time for Senate Republicans like Jake Hoffman – who makes his living as a political consultant to Republican campaigns – to explain why they are using tax dollars on a political grudge match three weeks before ballots are mailed,” Taylor wrote in an email to The Center Square.
Because the attorney general’s office has coordinated with the auditor general and conducted joint interviews, Taylor said that the investigative files must undergo legal review as those parallel investigations are ongoing.
“After the review is complete, the investigative records will be released in accordance with Arizona’s public records law,” said Taylor.
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