Arizona House Republicans are calling on Gov. Katie Hobbs to pursue a federal data-sharing agreement intended to help investigators identify Medicaid and other public-benefit fraud by finding connections between government benefit payments and complex business records.
House Majority Leader Michael Carbone (R-LD25) and House Health and Human Services Committee Chairman Selina Bliss (R-LD1) issued the request Monday following the Justice Department’s announcement of new cooperation agreements with several southeastern states.
✅House Republicans Call on Governor Hobbs to Join Federal Anti-Fraud Data-Sharing Partnership Six states have already agreed to help federal investigators uncover fraud
“Arizona families work hard and pay their taxes, and they have every right to expect that not one dollar of… pic.twitter.com/y0L8vKPchx
— Arizona House Republicans (@AZHouseGOP) August 3, 2026
The Justice Department’s National Fraud Enforcement Division announced the agreements July 30 as part of a wider federal-state initiative involving Alabama, Florida, Georgia, Louisiana, Mississippi, North Carolina, and South Carolina.
Secretaries of state from Alabama, Florida, Georgia, Louisiana, Mississippi, and South Carolina entered data-sharing agreements giving the division access to publicly available corporate-registration and public-benefit payment information held by their agencies. State treasurers from Florida, Mississippi, and South Carolina also joined the agreements.
Federal investigators plan to use the data to identify patterns connecting business entities with public-benefit payments and trace financial activity through shell companies, layered business structures, and related entities. The department encouraged other states to pursue similar partnerships.
“Arizona families work hard and pay their taxes, and they have every right to expect that not one dollar of their money ends up in the pocket of a fraudster,” Carbone said. “Six states have already signed up to help catch the criminals stealing from taxpayers and from the people these programs are supposed to serve. There is no good reason Arizona should not be next, and no good reason for Governor Hobbs to wait.”
“Arizona’s most vulnerable families should not pay the price for fraud and inaction,” he added. “Arizona taxpayers have already lost billions of dollars, and the Justice Department has given states a practical way to identify suspicious payments and business connections earlier. Governor Hobbs should begin the process today.”
Carbone proposed that Arizona begin with a two- or three-year memorandum of understanding that would preserve state control over the information and allow officials to evaluate the partnership’s results.
“Every dollar siphoned off by fraudsters is a dollar that does not reach an Arizona family who needs it,” Bliss said. “We have seen billions lost to sober living scams and phantom behavioral health clinics right here in our state, and Arizona has been named one of the riskiest states in the country for this kind of abuse.”
The Republican lawmakers did not specify which Arizona agencies would enter the agreement or which categories of public-benefit information would be shared.
Unlike the participating states, Arizona’s Secretary of State’s Office does not register corporations or limited liability companies. Those records are maintained by the independently elected Arizona Corporation Commission, while public-benefit payment information is held by executive agencies including AHCCCS and the Department of Economic Security.
The request comes as Hobbs remains under investigation over allegations involving Sunshine Residential Homes, a Department of Child Safety (DCS) contractor. Sunshine donated $300,000 to the Arizona Democratic Party and $100,000 to Hobbs’ inaugural fund before DCS approved a 30% rate increase, though no other group homes received rate increases and over a dozen contracts were terminated.
Attorney General Kris Mayes’ office has sought an interview with Hobbs as part of its ongoing criminal investigation, while the Arizona House has retained outside counsel to conduct a separate inquiry. Hobbs has denied wrongdoing and maintained that she did not influence the contracting decision. As of July 30, no date had been set for her interview with investigators. KJZZ reported that Mayes expects to make an announcement regarding the investigation before the November 3 election.
The Justice Department established a West Coast Health Care Fraud Strike Force in April covering Arizona, Nevada, and the Northern District of California. U.S. Attorney Timothy Courchaine said federal investigators and prosecutors had disrupted fraud schemes representing more than $1 billion in Arizona alone.
In announcing the strike force, the Justice Department cited the prosecution of two wound-graft company owners in a $1.2 billion Medicare and Medicaid fraud scheme and the indictment of Farrukh Jarar Ali, a Pakistani national accused of directing an approximately $650 million fraud operation involving at least 41 Arizona substance-abuse treatment clinics.
Federal prosecutors allege Ali’s company helped enroll clinics as providers with AHCCCS before submitting approximately $650 million in fraudulent claims for services that were unnecessary, substandard, or never provided. AHCCCS paid approximately $564 million on the claims, according to the Justice Department.
Hobbs’ administration has separately promoted Arizona’s existing efforts to prevent Medicaid fraud. In May, the governor’s office said the state’s enforcement campaign had targeted as much as $2.5 billion in suspected fraud, produced more than 364 payment suspensions based on credible allegations, and contributed to more than 100 indictments. AHCCCS also began deploying the Alivia 360 analytics platform this summer to identify potential improper claims before payment.
Carbone said the federal agreement could add another investigative tool by allowing authorities to identify suspicious connections between public payments and corporate records earlier.
“Arizona has already paid an enormous price for fraud,” Carbone said. “Governor Hobbs can act now to help prevent the next scandal. If she chooses to leave Arizona on the sidelines, she should explain why.”
Arizonans can now access records of mutual fund notice filings online.
The Arizona Corporation Commission (ACC) announced that the state began accepting mutual fund notice filings electronically on Monday.
The filings are available on the Electronic Filing Depository (EFD), an application system maintained by the North American Securities Administrators Association (NASAA).
The ACC’s Securities Division oversees mutual fund notice filings. Division Director Mark Dinell said in a statement that enabling EFD usage improved efficiency for investor regulation.
“The Securities Division is committed to providing efficient, modern regulatory services that facilitate lawful capital formation while maintaining Arizona’s strong investor protection standards,” said Dinell. “Arizona’s participation in the NASAA EFD offers issuers and their representatives an additional electronic filing option that streamlines the submission process, improves administrative efficiency, and supports timely access to Arizona’s capital markets without compromising the division’s regulatory oversight responsibilities.”
The EFD also has the capability of maintaining the electronic submissions of other notice filings to include Rule 506 offerings, unit investment trusts, and franchise registrations, though Arizona only allows for several filing types.
Going forward, the EFD will allow both the ACC and authorized filers to reduce paper submissions and administrative processing for mutual fund notice filings.
In addition to the ability to submit those filings electronically, authorized filers may pay applicable Arizona filing fees online, manage filings and renewals through a centralized portal, review filing status and history, and receive electronic confirmation of submitted filings.
The EFD also enables Arizonans to search and view filings submitted using the system, at no cost to the public.
Arizona is one of 22 states and territories that allow electronic filing through EFD for mutual fund notices: Alaska, Delaware, Georgia, Idaho, Kentucky, Louisiana, Massachusetts, Minnesota, Montana, New Jersey, North Dakota, Ohio, Pennsylvania, Puerto Rico, Rhode Island, South Carolina, Tennessee, Vermont, Virginia, West Virginia, and Wisconsin.
Kentucky also joined the EFD for mutual funds filings on Monday.
All other states, as well as the District of Columbia and the Virgin Islands, are in the process of allowing that kind of electronic filing through EFD.
Arizona began accepting EFD submissions of initial and amendment filings for Regulation D, Rule 506 offerings in 2023. The ACC still accepts paper filings for those as well.
Arizona does not allow electronic submissions through the EFD for notices of unit investment trusts or other filings through the universal filing type.
Also on Monday, the ACC issued its annual report for the 2025-26 fiscal year. ACC Chair Nick Myers said highlights of the fiscal year aligned with the commissioners’ commitment to safety, reliability, and affordability when it comes to utilities, entrepreneurship, and investing.
“The commission has continued strengthening Arizona’s grid, championing regulatory stability and efficiency, and eliminating subsidies and cost shifts,” stated Myers.
Highlights included grid stability proven by the lack of rolling blackouts and major power outages, nearly 8,000 megawatts of new electricity generation, electricity prices below the national average marked by a 1.2% decrease compared to a 7% national increase, a new online business filing portal called the Arizona Business Center, and more than $76 million in revenue contributed to the state’s general fund.
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Arizona now enjoys nearly $7.4 billion in total assets, representing a 126% increase since Treasurer Kimberly Yee took office in 2019.
Per the latest local government investment report from the treasurer’s office, total June earnings among the four local government investment pools (LGIP) exceeded $22.8 million. Per the treasurer’s office, each LGIP is a fixed-income investment pool with multiple governmental entity contributors.
Pool 5 investment fund earnings exceeded $10.5 million; Pool 7 earnings exceeded $9 million; Pool 500 earnings exceeded $2.5 million; and Pool 700 earnings exceeded $686,000.
Arizona Treasurer Kimberly Yee reported at the State Board of Investment meeting that the Local Government Investment Pool reached $7.4 billion in total assets. This is an increase of 126% since @AZTreasurerYee took office.
— Office of the Arizona State Treasurer (@AZTreasury) July 30, 2026
The treasurer’s office accomplished a record $7.6 billion in total assets last fall. The state’s Permanent Land Endowment Trust Fund has also hit record highs under the Yee administration.
Recently, Yee secured the Republican nomination over incumbent Tom Horne in the race for Arizona Superintendent of Public Instruction.
She has positioned herself as a defender of parental privacy rights when it comes to school choice funds. The treasurer remained in a lawsuit filed by a media outlet seeking records not kept by the treasurer’s office which contained sensitive student and family information, some of which were educational, medical, or financial in nature.
Earlier this month, Yee prevailed in that case in the Maricopa County Superior Court.
“We will continue to provide transparency regarding records in our custody, consistent with our statutory duties, while safeguarding confidential information entrusted to the state,” stated Yee at the time.
Today, we won our case against 12 News and Craig Harris to prioritize the privacy of Arizona children and ESA families. This case has been about protecting the privacy of Arizona's children and their families.
Yee also partnered with the State Financial Officers Foundation this year to produce a report on fraud and mismanagement of federal education tax dollars within state education departments and school districts. The report described oversight of public funding within education as more than bureaucratic duty, but “an economic and moral imperative” given the growing affordability crisis facing families.
The collaborative report including Yee’s contributions relied on more than six years’ worth of semiannual reports to Congress by the U.S. Department of Education Office of Inspector General (OIG), which yielded approximately 90 instances of confirmed and prosecuted fraud and abuse.
Arizona was not included in the report highlights. However, one Arizona case was within the cited OIG data, concerning the Bradley Academy of Excellence enrollment fraud scheme that resulted in the theft of $2.5 million.
I am honored to partner with @SFOF_States in addressing national education issues related to fraud and mismanagement. My office is dedicated to protecting taxpayers and promoting fiscal responsibility and transparency for Arizona families.⁰ Full report: https://t.co/UZWaeiinJEpic.twitter.com/vo60SfRo8H
— Arizona Treasurer Kimberly Yee (@AZTreasurerYee) July 16, 2026
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Voters will not be seeing a debate occur in the Arizona governor’s race between Gov. Katie Hobbs and Rep. Andy Biggs.
Hobbs announced formally on Tuesday that she wouldn’t be debating Biggs, though many speculated for months beforehand that would be the case regardless of who won the Republican primary.
The Democratic governor even stonewalled reporters for days after the primary before finally opening up to 12News reporters Brahm Resnik and Craig Harris on the subject.
Hobbs’ campaign manager Nicole DeMont told the outlet that the governor doesn’t find debates important.
DeMont said Hobbs’ time was better spent convincing constituents of her work through a statewide “Arizona First” tour with more than 100 open-press events and interviews.
“We respectfully decline debate invitations in this campaign because face-to-face engagement with Arizonans is more effective than a stage designed for short soundbites and political theater,” said DeMont.
DeMont’s statement confirmed what Hobbs appeared to indicate in media interviews in recent years: that she doesn’t believe debates hold much value with voters anymore.
Some have expressed concern that Hobbs engaging voters unchecked by opponents serves as a calculated echo chamber. They pointed to claims made in a recent Hobbs campaign ad, which were later characterized across the political spectrum as misleading or false.
The governor claimed in the ad to have reduced electricity bills, though utility rates have increased; cut red tape to build more affordable housing, though her administration imposed a housing moratorium that may cost taxpayers millions; and balanced the budget, though the multibillion-dollar surplus flipped into a deficit under her and it was the Republican-led legislature that convinced Hobbs to sign on after months of stalling and a legislative moratorium.
It will have been 8 years since Hobbs engaged in a debate.
In the past, the governor had fled from reporters when pressed on her willingness to debate opponents, and once claimed to have COVID-19 when expected to appear for a debate.
Although Hobbs won’t show, Biggs does plan to appear on the stage for the Clean Elections Debate in October. Drew Sexton, Biggs’ campaign senior advisor, said Hobbs’ continued rejection of debates was less about principle and more about fear of confrontation.
Sexton also said that Hobbs’ avoidance indicated moral failings that would explain the multiple rejections by lieutenant governor picks and the years-long criminal corruption investigation. Sources told The New York Times that both Jimmy McCain, John McCain’s son, and John Giles, former Mesa mayor and Republicans for Harris leader, turned Hobbs down for the role.
“The independent and persuadable voters up for grabs in Arizona deserve to hear from statewide candidates in a traditional debate setting, one that was held in every Arizona gubernatorial race since 1954 until Katie Hobbs ran for the position in 2022,” said Sexton. “Katie Hobbs can avoid the debate stage but she won’t get to avoid voters in November.”
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The federal government expects Arizona to do more to conserve its water in the ongoing Colorado River supply crisis while other basin states face far lower restrictions.
Arizona’s elected leaders responded that the state has done more than its fair share to conserve water throughout this historic multi-decade drought, and that they would not accept this federal directive. They indicated that they may challenge the directive in court.
The Final Environmental Impact Statement on Colorado River operations, released by the Bureau of Reclamation on Friday, would require Arizonans to cut water usage by up to 77% in 2027 and 2028.
Arizona, California, and Nevada had proposed water usage reductions that would have reduced Arizona’s supply by about 31%, but the federal government rejected that proposal.
The Arizona Department of Water Resources (ADWR) said the federal decision would “devastate” Arizonans and the state’s economy. ADWR criticized the federal framework for not including reductions to the Upper Basin or sufficient use of water in those upper reservoirs.
The Colorado River Basin provides drinking water and power for more than 40 million people, and irrigation water for more than five million acres of agricultural land. A 26-year drought has reduced the basin to historically low runoff and reservoir levels.
Arizona, California, and Nevada rely on water from the Lower Basin, while Colorado, Utah, Wyoming, and New Mexico rely on the Upper Basin.
Gov. Katie Hobbs expressed hope that the Department of the Interior (DOI) would still accept the Lower Basin alternative plan, but acknowledged the federal restrictions contained “unacceptable options” that included having Arizona take on the majority of water cutbacks, which Hobbs called “draconian.”
As Rep. Andy Biggs (AZ-05), Republican nominee for governor, mentioned in his appeal to Congress for Colorado River emergency funding, Hobbs cited Arizona’s unique position as a power player in the agricultural and defense industries.
“Arizona provides the agricultural produce, critical minerals, weapons defense systems and cutting-edge semiconductors that feed America, protect America and fuel America’s high-tech economy. No other state in the Colorado River basin can say the same,” said Hobbs.
The DOI has been unsuccessful in its attempts the past six years to reach consensus with Arizona and the six other basin states concerning long-term operational guidelines. The lack of consensus didn’t stop the federal release of the environmental impact statement, since current operational guidelines expire this year and the government must begin new operations on October 1 of this year.
Danny Seiden, President and CEO of the Arizona Chamber of Commerce & Industry, condemned the DOI decision as placing a “deeply disproportionate burden on Arizona” while failing to provide a cohesive conservation solution for all basin states. Seiden said they would stand alongside state leaders to demand a fairer decision.
“[A] plan that imposes severe, enforceable reductions on Arizona while shielding senior users and allowing other states to avoid comparable mandatory commitments is neither fair nor sustainable,” said Seiden. “Arizona will do its part, as it always has, but we will not accept being treated as the system’s default shock absorber. Any sustainable path forward must recognize Arizona’s conservation record, protect the investments our state has already made, and require measurable contributions from the entire Colorado River Basin.”
Rep. Teresa Martinez, an LD16 Republican whose constituents also hail from Pinal and Pima counties, questioned who in Arizona would be expected to cut water usage, and who would be given the better end of the deal.
Martinez said the federal government is forcing communities and farmers to bail out those beginning to feel the effects of the water crisis.
“Pinal County farmers already lost their Colorado River water. That happened years ago. They took the hit without a bailout, without fanfare, and without much sympathy from anybody,” said Martinez. “Rural Arizona cannot keep being treated like the first place to cut and the last place anyone thinks about.”
Martinez said she plans to speak with LD16 community leaders, especially those within the agriculture industry, to gauge the anticipated impact of this latest decision.
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