by Staff Reporter | Feb 6, 2026 | News
By Staff Reporter |
Republican lawmakers in the Arizona House are continuing their investigation into Gov. Katie Hobbs over an alleged pay-to-play scheme.
On Monday, House Speaker Steve Montenegro (R-LD29) announced the House advisory team obtained outside counsel from out of state to investigate the connection between Hobbs and a Glendale group home, Sunshine Residential Homes, independently.
Montenegro said in a statement that the connection between the governor and the group home constituted special treatment derived directly from political donations. The lawmaker said that the addition of outside counsel was necessary to achieve the full independence an investigation of this significance needed.
“The advisory team has done serious, disciplined work, and their recommendation to bring in independent counsel is the right next step,” said Montenegro. “The House will not look the other way when taxpayer dollars and vulnerable children may have been used as leverage in a political scheme. We will follow the facts, consider the findings, and ensure transparency and accountability in state government. Arizonans deserve nothing less.”
The outside counsel is Justin Smith with the Missouri-based James Otis Law Group. The law group was founded by Trump’s solicitor general, D. John Sauer.
Smith is the listed counsel in President Donald Trump’s lawsuit against a woman, E. Jean Carroll, alleging battery and defamation. Carroll sued Trump for defamation after he publicly denied her 2019 claims of him sexually assaulting her in the 1990s.
That petition is before the Supreme Court.
According to Montenegro, Smith will conduct records review and interviews. All findings will go directly to the advisory team and House leadership.
Advisory team members are State Reps. Selina Bliss (R-LD1), David Livingston (R-LD28), Matt Gress (R-LD4), Quang Nguyen (R-LD1), and Neal Carter (R-LD15).
Last November, that advisory team was created to follow up on 2024 media reporting alleging the pay-to-play scheme within the Arizona Department of Child Safety under Hobbs’ direction.
In the summer of 2024, the Arizona Republic reported that Sunshine Residential Homes received a unique 30% rate increase following a donation exceeding $400,000 to Hobbs and the Arizona Democratic Party.
Much of 2024 was spent attempting to determine who, if anyone, was fit to conduct an investigation into the allegations against the governor.
One of the earliest requests came from Republican State Sen. T.J. Shope, who asked Attorney General Kris Mayes to investigate. Mayes complied initially, but was immediately hit with other Republican lawmakers and state leaders asking her to recuse herself due to an alleged conflict of interest.
State Rep. Matt Gress asked Maricopa County Attorney Rachel Mitchell and Auditor General Lindsey Perry to investigate.
All three leaders are investigating. Mitchell and Perry are coordinating on one investigation, while Mayes will conduct her own investigation.
As reported last November, the work of the House’s advisory team will coordinate with these parallel investigations by the auditor general and county attorney, and the attorney general.
In February 2024, Sunshine Residential Homes owners Elizabeth and Simon Kottoor maxed out their donations to Hobbs’ reelection campaign. Each gave the maximum $5,400 contribution amount.
In October 2022, the Kottoors gave Hobbs’ initial gubernatorial campaign $10,000.
AZ Free News is your #1 source for Arizona news and politics. You can send us news tips using this link.
by Matthew Holloway | Feb 6, 2026 | Education, News
By Matthew Holloway |
Arizona State University (ASU) professor Dr. Owen Anderson has asked the Arizona Supreme Court to hear his case challenging mandatory diversity, equity, and inclusion (DEI) training after a lower court dismissed his lawsuit, according to a petition filed this week by the Goldwater Institute.
Anderson, a philosophy and religious studies professor at ASU, originally filed the lawsuit in 2024 against the Arizona Board of Regents. He argued that the university’s required “Inclusive Communities” DEI training violated an Arizona statute that prohibits public agencies from making employees participate in training that “presents any form of blame or judgment on the basis of race, ethnicity, or sex.” Arizona Senate President Warren Petersen (R-LD14) and then-House Speaker Ben Toma (R-LD27) filed an amicus brief in support of Dr. Anderson’s lawsuit.
According to the Goldwater Institute’s petition, Anderson objects to the DEI training materials, saying they include concepts about race and identity that he believes are unlawful under state statute.
“No one should be forced to participate in divisive DEI training or endorse race-based ideology as a condition for holding a government job. That’s exactly why Arizona lawmakers banned mandatory trainings that teach discriminatory ideas about race, ethnicity, or sex. But a law without enforcement is no law at all,” Goldwater attorney Stacy Skankey explained. “We’re asking the Arizona Supreme Court to correct the lower court’s error and restore Arizonans’ right to hold government agencies accountable when they violate the law.”
Goldwater stated in a press release, “There’s no way around it—a law is meaningless if it can’t be enforced. If allowed to stand, the error by the Arizona Court of Appeals would eliminate an essential civil-rights safeguard for public employees and taxpayers. The ruling changes how Arizona laws are enforced by removing the ability of an ordinary Arizonan to ensure government officials obey the law.”
In its February filing, Goldwater said the Arizona Court of Appeals ruled that Anderson could not sue because it concluded the relevant law does not expressly provide an avenue for individuals to challenge such training in court.
The petition filed by the Goldwater Institute argues that allowing the Court of Appeals’ decision to stand would leave public employees without a means to enforce the statute and hold government employers accountable. It asks the Arizona Supreme Court to recognize an implied private right of action under the law, allowing employees to challenge alleged unlawful training mandates.
The case highlights a broader debate over DEI programs at public institutions. The previous lawsuit filed by the Goldwater Institute in March 2024 similarly challenged ASU’s DEI training and sought a court order preventing the Board of Regents from imposing or using public funds for the training, citing the same Arizona statute.
ASU has previously contested the Goldwater Institute’s claims, with university officials stating that its training reflects its commitment to inclusiveness and does not violate state law. However, as AZ Free News has previously covered, ASU lost 27 grants from the National Science Foundation (NSF) in 2025, worth approximately $28.5 million, in line with the NSF policy that ensures grants don’t prioritize certain groups or individuals.
Speaking of the ongoing lawsuit, Professor Anderson said in a statement, “Arizona State leaders broke the law when they forced me and every other employee to take part in an ideological training that taught that it’s okay to judge people on their race, ethnicity, religion, and sex. I simply refuse to do that. Ultimately, the question before the Arizona Supreme Court isn’t a left or right issue—it’s about whether a state employee has the right to hold their employer accountable when it violates the law.”
There is currently no set timeline for the Arizona Supreme Court to decide whether it will grant review of Anderson’s petition.
Matthew Holloway is a senior reporter for AZ Free News. Follow him on X for his latest stories, or email tips to Matthew@azfreenews.com.
by Ethan Faverino | Feb 6, 2026 | News
By Ethan Faverino |
State Representative Michael Way (R-LD15) has introduced House Concurrent Resolution 2048 (HCR 2048), a proposed constitutional amendment that would hold Arizona’s elected officials financially accountable for failing to pass a state budget on time.
If approved by the Arizona Legislature and subsequently by voters in the next general election, HCR 2048 would amend Article V, Section 12 of the Arizona Constitution.
The measure would require that the Governor, all statewide executive officers—including the Secretary of State, Attorney General, State Treasurer, Superintendent of Public Instruction, and Lieutenant Governor—as well as all members of the Legislature, forgo their regular salaries and subsistence payments whenever the general appropriation bill for the upcoming fiscal year has not been signed into law by April 30.
Compensation withheld under this provision would not be paid retroactively once a budget is finally enacted; instead, salaries and payments would resume only on a forward basis, beginning with the first full pay period after the budget becomes law.
“Taxpayers do not get paid for work they do not finish, and lawmakers should not be treated any differently,” expressed Rep. Way. “We are elected to do one essential job each year, pass a state budget. If we fail to meet that deadline, we should not collect a paycheck.”
Rep. Way noted that Arizona has long experienced recurring delays in budget passage, with deadlines frequently treated more as flexible guidelines than firm requirements. “For too long, budget deadlines have been treated as suggestions instead of requirements,” Rep. Way added. “HCR 2048 changes the incentive structure and makes elected officials accountable for doing the job they were sent here to do.”
The resolution operates alongside HCR 2005, which would require the Legislature to adjourn its regular session by April 30 of each year. Together, the two measures aim to shorten the prolonged legislative sessions and bring greater discipline to the annual budget process.
Ethan Faverino is a reporter for AZ Free News. You can send him news tips using this link.
by Matthew Holloway | Feb 5, 2026 | News
By Matthew Holloway |
The Arizona House of Representatives approved bipartisan election integrity legislation on Monday intended to enhance voting oversight and protect the rights of military and overseas voters.
The measure, House Bill 2022, sponsored by State Representative Alexander Kolodin (R-LD3), cleared the full House after receiving bipartisan support. The bill’s passage comes amid ongoing discussions nationwide about election security and voter access.
According to the AZ House GOP, the legislation aims to protect Arizona’s military voters by ensuring election procedures account for service members and other Arizonans living or serving outside the state. Specific provisions in the bill address the handling and timely delivery of ballots for individuals covered under the Uniformed and Overseas Citizens Absentee Voting Act (UOCAVA), a federal law that safeguards absentee voting rights for military and overseas voters.
Specifically, the bill moves the Arizona primary election date to the second-to-last Tuesday in July, to better align with the federal election timeline adopted by the U.S. Congress and prevent military UOCAVA ballots from going uncounted.
In a statement announcing the bill’s passage, Representative Kolodin said, “This bill exists for one reason: to make sure Arizona voters, especially our men and women serving overseas in uniform, are not disenfranchised because Congress changed the rules and failed to check the calendar. HB 2022 locks in the fix that worked in 2024. Military ballots went out on time, and our men and women serving in uniform were able to exercise their right to vote as citizens of the United States. There is no excuse to walk away from something we know works.”
HB 2022 also includes a series of measures intended to strengthen election oversight and transparency, including requirements for updated reporting and procedural reviews by election officials, according to the bill summary.
The following changes will also be made:
- Modifying the deadline for ballot curing in elections that include a federal office to five calendar days, from the previous five business days.
- Broadening the type of locations that may be observed or challenged by party representatives, including ballot replacement locations, voting centers, in-person early voting locations, and emergency voting locations.
- And allowing permitting nomination and local initiative petition forms circulated under the previous law to be considered valid for the July 2026 primary.
State Representative Kolodin chairs the House Ad Hoc Committee on Election Integrity and Florida-style Voting Systems with Co-Chair Rep. John Gillette (R-LD30). The panel was formed to study election procedures and propose electoral reforms. This committee has previously advanced legislation to improve voter identification requirements, tighten security around mail-in and absentee ballots, and restrict certain external influences on Arizona elections.
HB 2022 will now move to the Arizona Senate for further consideration.
Matthew Holloway is a senior reporter for AZ Free News. Follow him on X for his latest stories, or email tips to Matthew@azfreenews.com.
by Staff Reporter | Feb 5, 2026 | Education, News
By Staff Reporter |
The Arizona State Board of Education (ASBE) released an improved grade for the state’s largest charter school operator.
Last month, ASBE awarded Primavera Online School a letter grade of “B” for the 2024-2025 school year.
The threat of closure of the state’s largest charter school operator attracted the attention of President Donald Trump allies and school choice advocates.
The corrected grading follows nearly a year of efforts by the charter school to overturn a charter revocation from the Arizona State Board of Charter Schools (ASBCS).
In a statement, Primavera Online School stated that ASBE’s latest determination validated their year-long defense of their performance.
“These findings confirm that Primavera’s academic performance has always been within the state’s definition of a performing school and is currently a highly performing school, consistent with its long-standing mission of serving at-risk and non-traditional students across Arizona,” said the school in a press release.
School choice proponents petitioned Arizona Superintendent of Public Instruction Tom Horne to intervene in the threat against Primavera Online School.
However, Horne clarified last spring that he had no power or influence over charter school revocation decisions, even with having a seat on ASBCS.
“The legislature chose to divide jurisdiction regarding charter schools between the Arizona Department of Education and the Charter Board. The current issue is within the jurisdiction of the Charter Board. I have no power or influence over that. If I were to try to influence it, the Charter Board would resent the trespass on their turf, and it would do more harm than good,” said Horne at the time. “There is likely to be an appeal to an administrative law judge, and the school needs to marshal its evidence to present to the administrative law judge. If I am asked for any data or other information that the department has, I will of course immediately provide it regardless of which side requests it.”
Without intervention, ASBCS revoked Primavera Online School’s charter last summer.
Primavera Online School leadership publicly fought the revocation, accusing ASBCS of incorrectly redesignating their school as traditional rather than its historical designation as alternative.
The school did receive approval for alternative status for the 2025 fiscal year, and its application for the 2026 fiscal year was pending before the Arizona Department of Education at the time of the revocation.
Its founder and CEO, Damian Creamer, failed to convince ASBCS that they had improperly redesignated his school.
The board cited three years of low academic results as the basis for its decision.
However, a retrospective review by the Arizona Department of Education (ADE) recently conducted focusing on the online charter school’s academic standing over the three scrutinized school years (2022, 2023, and 2024) determined that the charter school would have warranted a passing grade of “at least C” under an alternative school status.
Primavera Online School was founded in 2001 to assist students with a high risk of not graduating from conventional schools. Since opening, the school has had over 250,000 students. Approximately 8,000 students attend the school annually.
AZ Free News is your #1 source for Arizona news and politics. You can send us news tips using this link.
by Ethan Faverino | Feb 5, 2026 | News
By Ethan Faverino |
Arizona State Senator Janae Shamp (R-LD29) has introduced legislation to safeguard patients and local pharmacies from the growing influence of “corporate middlemen” in the prescription drug market.
Senate Bill 1545 prohibits pharmacy benefit managers (PBMs) from owning or holding any direct or indirect interest in retail pharmacies in Arizona. The bill addresses a fundamental conflict of interest that allows PBMs—mediators between insurers, drug manufacturers, pharmacies, and patients—to steer prescriptions to their affiliated pharmacies, under-reimburse independent competitors, drive up costs, and reduce patients’ choice.
“Arizonans deserve transparency and fairness in their prescription drug costs,” stated Senator Shamp. “PBMs were created to manage benefits — not to own pharmacies, control the rules, and profit off the entire system. PBMs were never meant to be both the referee and the player.”
PBMs control key aspects of prescription drug access, including which medications are covered, where prescriptions can be filled, and the reimbursement rates to pharmacies. When PBMs own pharmacies, they can prioritize their own outlets, quietly eliminate local and independent pharmacies, and inflate overall drug costs.
“This bill sends a clear message: our healthcare system exists to serve patients, not corporate profits,” added Shamp. “When the middleman becomes the gatekeeper, prices rise, choices narrow, and local pharmacies are pushed out. SB 1545 ends that self-dealing and puts patients back in control. This bill is about fairness, transparency, and making sure Arizona’s healthcare system works for families — not for corporate executives gaming the system behind closed doors.”
The legislation directs the Arizona State Board of Pharmacy to enforce compliance by revoking or refusing to renew any permits held in violation of this measure.
To protect patient access, the bill establishes safeguards for rare, orphan, or limited-distribution medications that might otherwise become unavailable. The Board is authorized to issue limited-service pharmacy permits in these cases and to convert existing permits as needed for a minimum of 90 days while assessing ongoing market availability. The measure also allows temporary extensions of pharmacy permits for facilities that provide critical services during pending sales to eligible buyers.
The legislation sets a phased implementation, beginning with an initial assessment of all active pharmacy permits as of July 1, 2026. At least 90 days before January 1, 2027, the Board must send written notice to any permit holders reasonably believed to be in violation, and affected pharmacies must then provide written notice to their patients and prescribing providers at least 60 days before the effective date of December 31, 2026.
Ethan Faverino is a reporter for AZ Free News. You can send him news tips using this link.
