Hobbs Administration Faces Scrutiny Over Four Straight Years Of Missed Federal Audits

Hobbs Administration Faces Scrutiny Over Four Straight Years Of Missed Federal Audits

By Ethan Faverino |

Arizona State Representative Gail Griffin (R-LD19) is raising concerns over the state’s continued failure to meet federal auditing requirements, warning that billions of dollars in federal funding supporting health care, long-term care, and other assistance programs could face penalties.

Arizona has missed the federal Single Audit deadline for four consecutive fiscal years, from 2022 through 2025, under Governor Katie Hobbs’ administration.

The Single Audit is an annual financial and compliance review required by federal law to account for how states spend federal funding and ensure compliance with federal regulations.

Arizona’s fiscal year 2025 audit was due March 31, 2026, but remains incomplete. The Arizona Auditor General has projected that the report may not be released until March 5, 2027, less than a month before the fiscal year 2026 audit deadline.

According to state officials, Arizona spent approximately $28.6 billion in federal funding during fiscal year 2024, including $18.3 billion from the U.S. Department of Health and Human Services (HHS).

The funding supports several programs, including the Arizona Health Care Cost Containment System (AHCCCS), which administers Medicaid services, and the Arizona Long Term Care System (ALTCS), which provides nursing home and long-term care assistance to eligible seniors and individuals with disabilities.

Federal funding also supports behavioral health services, child care assistance, food assistance through the Supplemental Nutrition Assistance Program (SNAP), and other public assistance programs.

“Governor Hobbs has allowed Arizona to remain out of compliance year after year, and now the health care and benefits Arizonans depend on are exposed to federal penalties,” stated Rep. Griffin. “We are talking about $18.3 billion in HHS funding and services that seniors, people with disabilities, and vulnerable families rely on. These Arizonans should not have to worry about losing benefits because the Governor has failed to meet basic federal accountability requirements.”

During a September 21 hearing of the Joint Legislative Audit Committee (JLAC), HHS Assistant Secretary for Financial Resources Gustav Chiarello criticized the state’s response to its overdue audits, calling it “inadequate.”

Under federal regulations, agencies have several enforcement options when recipients fail to comply with funding requirements, including withholding payments, disallowing costs, and suspending or terminating federal awards.

The federal government previously notified Hobbs of Arizona’s noncompliance in a July 14 letter, citing a “consistent pattern of noncompliance” and requesting corrective action.

On July 31, the Arizona Department of Administration (ADOA) proposed completing the overdue audit by December 30, 2026, and shifting portions of the federal compliance auditing process to outside accounting firms.

The Auditor General subsequently disputed that timeline, calling it unrealistic and identifying March 5, 2027, as a more achievable completion date.

Arizona’s delayed audits have already resulted in financial consequences for the state’s public universities. Federal agencies have reportedly withheld or frozen hundreds of millions of dollars in funding, including approximately $154 million from the National Institutes of Health (NIH).

Shortly after, the universities separated their federal audits from the statewide Single Audit process to protect their access to federal funding.

During the September hearing, Chiarello also testified that neither Hobbs nor her office had directly contacted him or his staff to address the state’s noncompliance following the July notification.

“For four years under Governor Hobbs, this problem has gotten worse instead of better,” Griffin said. “Arizona has missed four consecutive federal deadlines, the number of audit findings has grown, and HHS is now warning about federal enforcement. Even after HHS formally notified the Governor that Arizona was not in compliance, her office did not have a direct conversation with the federal official responsible for addressing the delinquency. Four years is more than enough time to get this under control.”

State officials have attributed the continued delays in part to late financial reporting from multiple agencies, including the Arizona Department of Economic Security (DES). The Auditor General also reported that agency submissions were arriving later than in previous years, further complicating efforts to complete the required audits.

At the hearing, ADOA acknowledged that the delays were unacceptable but did not commit to completing the fiscal year 2026 audit by its federal deadline.

Griffin called on the Hobbs administration to establish a realistic timeline, improve communication with federal officials, and implement corrective measures to bring Arizona back into compliance.

“Governor Hobbs needs to take responsibility and fix this,” said Griffin. “Arizona needs a credible timeline, direct engagement with the Department of Health and Human Services, and an immediate plan to bring the State back into compliance.”

“Seniors, families, and Arizonans with disabilities should not have their health care and other essential benefits put at risk because the administration cannot get its financial reporting in order,” added Griffin.

Ethan Faverino is a reporter for AZ Free News. You can send him news tips using this link.

Mountainside Fitness Founder Endorses Warren Petersen For Attorney General

Mountainside Fitness Founder Endorses Warren Petersen For Attorney General

By Ethan Faverino |

Mountainside Fitness founder Tom Hatten has endorsed Arizona Senate President Warren Petersen, the Republican nominee for Arizona Attorney General, in a new 30-second campaign advertisement emphasizing fair enforcement of the law, support for Arizona businesses, and public safety.

Hatten, who has spent more than three decades building his Arizona-based fitness company, announced his support for Petersen while highlighting the importance of an attorney general who understands the challenges facing business owners, employees, and families across the state.

“Business owners need an attorney general who sees entrepreneurs as partners, not opponents,” said Hatten. “We’ll protect our neighborhoods and will stand with law enforcement.”

Hatten founded Mountainside Fitness in 1991 while attending Arizona State University, opening his first gym in a 4,800-square-foot facility in Ahwatukee. Since then, the company has expanded across Arizona and now serves more than 150,000 members.

The endorsement reflects Hatten’s support for Petersen’s approach to law enforcement, economic development, and the consistent application of state laws.

“That’s why I’m supporting Warren Petersen for Attorney General. As attorney general, Warren will enforce the laws fairly and protect the people building Arizona’s economy,” Hatten said.

“That matters to my employees and our customers who need safe neighborhoods and an affordable cost of living,” he added. “Please join me in voting Warren Petersen for Attorney General.”

Petersen welcomed the endorsement, emphasizing Hatten’s experience as a business owner and the responsibilities that come with operating a company employing Arizona workers.

“Tom knows what it takes to build something from the ground up and carry the responsibility of having employees and families count on you,” said Petersen. “I’m grateful for his trust.”

Petersen also criticized incumbent Democratic Attorney General Kris Mayes over energy policies, arguing that rising electricity costs place additional financial burdens on Arizona businesses and households.

“When businesses face higher electric bills, those costs reach their employees and customers, too,” Petersen said. “Kris Mayes is fighting efforts to repeal costly energy mandates when families need relief.”

“I will bring an approach grounded in the law, fair treatment, and respect for the people working to make a living here,” added Petersen. “That means protecting consumers from fraud, standing with law enforcement, and giving business owners confidence that the rules will be enforced consistently.”

The endorsement comes as Petersen campaigns to unseat Mayes in the November general election, with recent polling indicating a closely contested race.

According to a September survey published by Equis Research, Mayes and Petersen each received 45% support among Arizona likely voters, placing the candidates in a statistical tie.

Ethan Faverino is a reporter for AZ Free News. You can send him news tips using this link.

Grand Canyon University Appoints Phoenix Attorney James Williams To Lead New College Of Law

Grand Canyon University Appoints Phoenix Attorney James Williams To Lead New College Of Law

By Ethan Faverino |

Grand Canyon University (GCU) announced this week the appointment of Phoenix attorney James Williams as the inaugural dean of its College of Law, marking another step toward the university’s plans to establish a law school centered on academic excellence, professional development, and Christian principles.

Williams will oversee the development of GCU’s 12th college, which aims to prepare future attorneys through rigorous legal education while emphasizing faith, integrity, justice, and service to others.

“We are grateful James answered the calling to serve as the inaugural dean of the College of Law,” stated GCU President Brian Mueller. “There are many accomplished attorneys who understand the law. What makes James uniquely suited for this role is the way he brings together legal excellence, a passion for teaching and mentoring, and a deeply rooted Christian faith.”

Mueller emphasized that the university intends to take a different approach to legal education by incorporating Christian worldview principles, free-market thinking, and a commitment to public service into its academic programs.

“We are not simply building another law school. We have an opportunity to rethink what legal education can look like when academic excellence, Christian worldview principles and free market thinking are joined with a strong sense of purpose,” said President Mueller. “We want to develop attorneys who pursue truth and justice, serve others with integrity and understand the tremendous responsibility that comes with the influence they will have in their communities. James understands that vision because he has lived it throughout his career.”

The College of Law could welcome its first class as early as fall 2027, pending regulatory approval.

GCU is currently pursuing authorization through the Arizona Supreme Court, the Higher Learning Commission, and the Arizona Board for Private Postsecondary Education.

The university also plans to seek accreditation from the American Bar Association (ABA), a separate process expected to take multiple years.

If authorized by the Arizona Supreme Court, eligible graduates could pursue admission to practice law in Arizona, subject to applicable requirements. Upon receiving ABA accreditation, GCU would become Arizona’s third ABA-accredited law school, joining Arizona State University and the University of Arizona.

Williams brings 18 years of legal experience in Arizona and currently serves as an attorney and shareholder at Phoenix-based law firm Schmitt Schneck Even & Williams.

A graduate of Baylor University School of Law, Williams also serves as president of the Phoenix chapter of the Christian Legal Society, where he has been a board member for approximately a decade.

In addition to his legal practice, Williams has worked with students at Arizona State University’s Sandra Day O’Connor College of Law, helping coach its mock trial competition program and mentoring aspiring attorneys.

Williams said the opportunity to establish a law school from the ground up was a significant factor in his decision to accept the position.

“Starting from the ground up gives us the opportunity to be very intentional about the kind of law school we want to become and, more importantly, the kind of lawyers we want to develop,” Williams said. “GCU students will be challenged academically, prepared professionally and encouraged to think deeply about the purpose of their work and the responsibility they have to serve others. I am confident this is a work God has begun in and through GCU, and that He will be faithful to complete it.”

His involvement in Christian leadership extends beyond the legal profession. Williams serves as an elder and worship leader at New City Church in Phoenix, reflecting his longstanding commitment to integrating faith with professional responsibilities.

Williams said he hopes the new college will develop attorneys who are not only capable legal professionals but also individuals committed to serving their communities and upholding the rule of law.

“My hope is that GCU will develop lawyers who are exceptional advocates and legal thinkers, but also men and women of courage, humility, integrity and faith who understand that their profession is ultimately about serving people,” Williams added. “If we can send graduates into courtrooms, businesses, government agencies and communities with that mindset, the impact can extend far beyond the practice of law. That is the kind of law school we intend to build.”

The establishment of the College of Law represents another expansion of GCU’s academic offerings as the university works toward introducing a new legal education program in Arizona.

Ethan Faverino is a reporter for AZ Free News. You can send him news tips using this link.

Halloween Spending Expected To Reach Record $13.5 Billion In 2026

Halloween Spending Expected To Reach Record $13.5 Billion In 2026

By Ethan Faverino |

Americans are expected to spend $13.5 billion on Halloween this year, surpassing last year’s record of $13.1 billion, according to the National Retail Federation’s (NRF) annual consumer survey conducted by Prosper Insights & Analytics.

The survey found that 74% of consumers plan to celebrate Halloween this year, compared to 73% in 2025 and 68% in 2019, reflecting the holiday’s continued popularity among American households.

Despite increased spending, consumers are expected to remain mindful of rising costs, with average spending projected at $115.14 per person, slightly above last year’s $114.45.

“Consumers continue to make Halloween a spending priority, but they are also approaching the season with affordability in mind,” stated NRF Vice President of Industry and Consumer Insights Allison Zeller.

“For more than two decades, NRF’s Halloween survey has tracked how consumers celebrate the holiday, and this year’s results show that shoppers are being thoughtful and strategic, looking for ways to maximize value throughout the season,” added Zeller.

According to the survey, nearly half of consumers (49%) planned to begin their Halloween shopping in September or earlier, an increase from 34% in 2016.

Among those shopping early, 42% cited their enthusiasm for the fall season, while 34% said Halloween was one of their favorite holidays. Another 23% said they began shopping early to spread out their expenses, while 21% were motivated by discounts and promotions.

Consumers are also adjusting their purchasing habits in response to higher prices. Nearly one-third (31%) said they would compare prices between retailers if Halloween merchandise costs more than expected, while 26% would seek coupons or sales. Another 34% plan to purchase items that can be reused in future years or repurposed for other occasions.

Costumes are expected to account for the largest share of Halloween spending at $4.4 billion, followed by decorations at $4.3 billion, candy at $4.1 billion, and greeting cards at $800 million.

Of the projected costume spending, consumers are expected to spend approximately $2 billion on adult costumes, $1.5 billion on children’s costumes, and $920 million on pet costumes.

Candy remains the most popular Halloween purchase, with 96% of shoppers planning to buy sweets. Additionally, 78% plan to purchase decorations, 71% expect to buy costumes, and 42% plan to purchase greeting cards.

Discount stores remain the leading shopping destination for Halloween merchandise, attracting 39% of consumers, followed by specialty Halloween and costume stores at 32% and online retailers at 27%.

Local and small businesses are also attracting more Halloween shoppers, with 13% planning to make purchases at these establishments, nearly double the 7% reported in 2016.

The survey also highlighted the growing role of artificial intelligence in consumer shopping habits.

Nearly half of consumers (47%) reported using AI platforms or tools to assist with Halloween shopping, including brainstorming costume and decoration ideas and researching potential purchases.

Online searches remain the most popular source of Halloween costume inspiration at 32%, although that figure declined from 37% last year and reached its lowest level in a decade.

The most common Halloween activities this year include handing out candy (61%), dressing in costumes (50%), decorating homes or yards (42%), carving pumpkins (42%), and watching scary movies (42%).

Ethan Faverino is a reporter for AZ Free News. You can send him news tips using this link.

Small Business Organization Endorses Six Arizona Congressional Candidates Ahead Of November Election

Small Business Organization Endorses Six Arizona Congressional Candidates Ahead Of November Election

By Ethan Faverino |

The National Federation of Independent Business (NFIB) announced its endorsement of six Arizona congressional candidates ahead of the November general election, citing their positions on policies affecting small businesses and economic growth.

The endorsements include two Republican candidates seeking seats in the U.S. House of Representatives and four incumbent Republican congressmen seeking reelection.

The organization endorsed:

  • Jay Feely (AZ-01)
  • Eli Crane (AZ-02)
  • Mark Lamb (AZ-05)
  • Juan Ciscomani (AZ-06)
  • Abe Hamadeh (AZ-08)
  • Paul Gosar (AZ-09)

“Arizona small businesses are the foundation of our state’s economy,” stated NFIB Arizona State Director Chad Heinrich. “The candidates we have endorsed have a deep understanding of the small business landscape and will be reliable pro-Main Street voices in Congress. We are eager to work with them to ensure that Arizona small businesses can continue to effectively operate and create jobs.”

The NFIB regularly participates in federal and state policy debates involving taxation, government regulations, labor requirements, and other issues affecting business owners.

The organization said its endorsements reflect its assessment of the candidates’ commitment to advancing policies that support small businesses.

The endorsements were issued through NFIB FedPAC, the organization’s political action committee, which is funded through voluntary contributions from NFIB members beyond their membership dues. According to NFIB, endorsement decisions are made through a member-driven grassroots evaluation process.

“We are proud to endorse a slate of candidates who have demonstrated a steadfast commitment to advancing the interests of Arizona small businesses,” stated Louis Bertolotti, NFIB Political Director. “Small business owners deserve representatives who understand the issues that matter to them and will consistently advocate for policies that promote economic growth. We look forward to working with these pro-small business leaders in Washington.”

The congressional endorsements came the same day the NFIB’s Arizona political action committee announced its support for 52 candidates seeking state offices, reflecting the organization’s involvement in both state and federal elections ahead of November.

Ethan Faverino is a reporter for AZ Free News. You can send him news tips using this link.