Fort Myers Naples, FL, August 21, 2026 —

PHOENIX – Arizona Attorney General Kris Mayes announced Friday that state prosecutors will not pursue criminal charges against Governor Katie Hobbs in relation to allegations of a pay-to-play scheme. The investigation centered on donations made by a group home company to Governor Hobbs’ inaugural celebration.

The allegations suggested that Sunshine Residential Homes, a provider of group home services, received a rate increase from the state shortly after donating $100,000 to Governor Hobbs’ inaugural committee. Prosecutors reviewed evidence related to this matter.

While determining that there was insufficient evidence to file criminal charges against Governor Hobbs, Attorney General Mayes did recommend legislative reform. The Attorney General’s office suggested that changes are needed to increase transparency regarding political donations made by state contractors.

The specific outcome of the rate increase for Sunshine Residential Homes and the exact timeline of the donation in relation to the rate adjustment were key elements examined during the investigation. The Attorney General’s office did not provide further details regarding the specifics of the rate increase.

The $100,000 donation was made to Hobbs’ inaugural fund, which is separate from campaign funds. The investigation aimed to determine if this donation influenced any official actions by the Governor’s office concerning Sunshine Residential Homes.

No other individuals or entities were named in connection with the decision not to file charges. The recommendation for legislative reform highlights a focus on the broader issue of campaign finance and contracting in Arizona state government.



Story summarized from the original created by AP on apnews.com, see more information here.

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