by Jonathan Eberle | Nov 18, 2025 | News
By Jonathan Eberle |
Arizona House Speaker Steve Montenegro has formed a new advisory team to investigate allegations that Governor Katie Hobbs’ administration awarded a lucrative contract increase to a politically connected group home provider, raising fresh questions about influence and accountability inside the Department of Child Safety (DCS).
The move follows reporting by The Arizona Republic that Sunshine Residential Homes received a 30% rate increase after contributing more than $400,000 to Hobbs and Democratic political committees. According to documents cited in the reporting, other group home providers seeking similar adjustments were denied. Internal communications reportedly show DCS staff discussing the provider’s political connections to the governor and suggesting the increase be kept quiet from competing organizations.
The revelations come as DCS faces a budget shortfall and has been under pressure to reduce reliance on group home placements, making the agency’s decision to grant a significant rate hike particularly notable. Speaker Montenegro said the advisory team will conduct a legislative investigation to assemble facts, coordinate with law-enforcement agencies, and evaluate possible actions the House may take to prevent preferential treatment in state contracting.
“The facts reported raise serious questions the House cannot ignore,” Montenegro said in a statement. “Arizona’s children, families, and taxpayers deserve a system that is clean, fair, and focused on care, not political access or donations.”
The speaker also directed state agencies and contractors to preserve all relevant records and to cooperate fully with the Legislature. The advisory panel includes several senior lawmakers including Rep. Selina Bliss, Chair of the House Health and Human Services Committee; Rep. David Livingston, Chair of House Appropriations; Rep. Matt Gress, Chair of the Joint Legislative Audit Committee; Rep. Quang Nguyen, Chair of House Judiciary; and Speaker Pro Tempore Neal Carter.
The investigation builds on earlier legislative efforts to probe the relationship between Sunshine Residential Homes and the Hobbs administration. In 2024, Rep. Matt Gress requested investigations by the Maricopa County Attorney and the Auditor General following the first reports linking the provider to political contributions and favorable treatment. Rep. David Livingston separately urged Attorney General Kris Mayes to recuse herself, citing concerns about conflicts of interest involving the governor and the Democratic Party.
The House advisory team is expected to begin its work immediately and will coordinate with any parallel investigations by the Auditor General, the Maricopa County Attorney’s Office, or the Attorney General. Montenegro said lawmakers will “secure the records, ask the hard questions, and, if necessary, change the law to ensure it never happens again.”
Jonathan Eberle is a reporter for AZ Free News. You can send him news tips using this link.
by Matthew Holloway | Nov 18, 2025 | News
By Matthew Holloway |
The Arizona Department of Homeland Security (AZDHS) has joined a lawsuit brought by 12 states that challenges the terms set by the Trump administration and FEMA for two federal grants that impact the prevention and response to terrorist attacks, securing the southern border, and bolstering emergency management capabilities.
The lawsuit, filed on November 4th was touted by Democrat Attorney General Kris Mayes as “the 30th lawsuit the Attorney General of Arizona has joined to stop the Trump administration’s federal overreach.” It argues that the grant terms in the Emergency Management Performance Grant (EMPG) and Homeland Security Grant Program (HSPG) depart from past practices, essentially making it more difficult for state, local, and Tribal partners to obtain and use the federal grant funds.
Mayes complained at the time, “The Trump administration is trying to claw back money we use to protect the border, including for protective equipment and vehicles for law enforcement on the ground, and to support emergency preparedness and terrorism response preparation. They are also trying to withhold 50% of the funds we use to respond to emergencies in Arizona.”
“Local, state, and Tribal public safety agencies rely on funding from the Homeland Security Grant Program to effectively protect Arizonans from vulnerabilities bad actors may wish to exploit,” AZDHS Director, Dr. Kim O’Connor said in a statement. “This funding is absolutely essential in keeping our citizens and communities safe.”
The lawsuit points to two of the imposed terms as “at issue”:
- “A hold on EMPG funding until the State provides FEMA with ‘a certification of the recipient state’s population as of September 30, 2025,’ including an explanation of ‘the methodology it used to determine its population and certify that its reported population does not include individuals that have been removed from the State pursuant to the immigration laws of the United States.’”
- “A reduction of the period of performance, i.e., the period in which grant recipients must complete all activities to be reimbursed, from three years to one year.”
The state attorney’s general argue that the accurate determination of a state’s population of lawful inhabitants “exceeds” the federal government’s “statutory authority, as no statute permits Defendants to impose such a hold,” “is contrary to law because 13 U.S.C. § 183 requires federal agencies to use U.S. Census Bureau data to allocate federal grant funding,” and “is arbitrary and capricious in violation of the Administrative Procedure Act (“APA”) because it is unexplained, does not reflect reasoned decision making, and ignores the States’ reliance interests on receipt of the EMPG funds unimpeded.” Finally, they argue that the action was issued without following procedural requirements.
Reasoning for these requirements is, however, provided in the FY 2025 DHS Standard Terms and Conditions, which states “compliance with this term is material to the Government’s decision to make or continue with this award and that the Department of Homeland Security may terminate this grant, or take any other allowable enforcement action.”
Mayes also appears aware of another facet of the administration’s reasoning, as stated in her November 4th statement: “the Trump administration has attempted to reduce FEMA’s role and shift the burden of emergency management to the States.”
President Trump noted during a June announcement in the Oval Office that his administration “want(s) to wean off of FEMA and we want to bring it down to the state level.” He added that states should be equipped to handle disasters directly, noting that he wants to “give out less money,” and to “give it out directly,” according to the Associated Press. He further placed the onus for disaster response onto state governors saying, “The governor should be able to handle it and frankly if they can’t handle the aftermath, then maybe they shouldn’t be governor.”
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 | Nov 18, 2025 | Economy, News
By Ethan Faverino |
As retailers gear up for Black Friday and the holiday rush, a new analysis of FBI crime data highlights significant variations in shoplifting risks across the U.S., with Oregon emerging as the state most vulnerable to theft this November.
The study examined shoplifting reports per 100,000 residents in November over the past four years (2021-2024).
“As retailers prepare for Black Friday and the peak winter shopping months, these variations underscore the need for tailored, state-specific strategies,” said CEO of Turvallinen Markus Kanerva, whose company conducted the study. “Stores in high-incident areas may need to increase security personnel, deploy advanced surveillance technology, or implement stricter inventory controls. “
Oregon leads the nation with an average of 59.90 incidents per 100,000 people—a staggering 89.68% above the national average of 31.58.
New Mexico ranks second with 57.85 incidents per 100,000 (+83.19% above the national average), followed by Delaware in third with 48.48 (+53.51%). New York and Arizona round out the top five with scores of 47.47 (+50.32%) and 46.91 (48.54%), respectively, showing elevated risks in the Southwest and Northeast regions.
Vermont (46.72, +47.94%), Pennsylvania (46.27, +46.52%), Virginia (45.60, +44.40%), Maryland (42.76, +35.40%), and Tennessee (39.76, +25.90%) complete the top ten.
On the other side of the list is Idaho, which reports the lowest rate in the nation with 15.45 incidents per 100,000 residents—51.08% below the national average. Following is Rhode Island with 18.72 (-40.72%), Alaska with 19.08 (-39.58%), Hawaii with 19.09 (-39.55%), and Maine with 19.21 (-39.17%).
“Relying on broad, national-level policies is no longer sufficient; the data suggests that nuanced approaches and being responsive to local risk patterns are far more effective in preventing theft,” Kanerva added. “As holiday shopping ramps up, businesses that proactively address local shoplifting trends are likely to be better positioned to navigate one of the busiest retail periods of the year.”
Ethan Faverino is a reporter for AZ Free News. You can send him news tips using this link.
by Jonathan Eberle | Nov 17, 2025 | News
By Jonathan Eberle |
Newly surfaced documents and internal communications are raising new questions about political influence inside the Arizona Department of Child Safety (DCS), prompting calls for accountability from legislative leaders. Senate President Pro Tempore T.J. Shope is urging state and county prosecutors to provide an immediate update on whether investigations into the matter remain active.
The controversy centers on Sunshine Residential Homes, a group home provider that recently received a 30% rate increase from DCS. The company has been a significant donor to Governor Katie Hobbs and multiple Democratic political groups—connections that agency employees reportedly flagged as a source of concern.
According to internal messages and financial records reviewed by lawmakers, DCS staff expressed discomfort with the approval process for the rate hike. Employees referenced Sunshine Residential’s political ties to the Governor and suggested the situation placed agency leaders in an “uncomfortable position,” particularly after the provider allegedly pressured the state by threatening to shift services to the federal system unless the increase was approved.
Despite warnings that the higher rate would deepen an already-projected $13 million budget shortfall, DCS moved forward with the decision. Documents also show Sunshine Residential cited a substantial financial deficit to justify its request. However, financial records reportedly indicate the provider had $440,000 in operating income—figures that independent accounting experts said appeared inconsistent with the claimed shortfall.
These discrepancies have intensified questions about whether political considerations influenced decisions affecting vulnerable children in state care. In a letter sent Thursday to Attorney General Kris Mayes and Maricopa County Attorney Rachel Mitchell, Shope requested confirmation that any investigations into the potential “pay-to-play” conduct are ongoing. He also asked prosecutors to update the Legislature on the status of their reviews.
“These revelations are deeply disturbing,” Shope said. “If a provider donating hundreds of thousands of dollars to the Governor then pressures the state for a massive rate increase—and receives it—Arizonans deserve to know whether political influence played a role.”
Shope emphasized that the issue extends beyond partisan lines. “This is not a partisan issue—it’s a public trust issue,” he said. “If political donations influenced decisions inside DCS, especially decisions involving vulnerable children, that is unacceptable. We intend to get to the bottom of this.”
Jonathan Eberle is a reporter for AZ Free News. You can send him news tips using this link.
by Ethan Faverino | Nov 17, 2025 | News
By Ethan Faverino |
The Goldwater Institute has filed a lawsuit against Arizona Attorney General Kris Mayes, demanding the release of consumer records tied to the AG’s 2024 antitrust lawsuit against nine major residential landlords and RealPage, Inc.
Filed on November 12, 2025, in Maricopa County Superior Court, the suit accuses the Democratic attorney general’s office of violating Arizona’s public records law by refusing to disclose basic information about complaints, or lack thereof, that prompted the state’s allegations of an illegal rent price-fixing conspiracy affecting hundreds of thousands of renters in Phoenix and Tucson metros.
Stacy Skankey, litigation director for the Goldwater Institute’s American Freedom Network, noted that there was no mention of any actual consumer complaints.
Skankey emphasized that Goldwater takes no position on the underlying antitrust claims. Instead, it seeks only aggregate data: the total number of consumer complaints received by the AG’s office regarding RealPage and the defendant landlords, including any unsolicited submissions.
The Goldwater Institute first requested the records in April 2024. After months of silence, the AG’s office issued a denial in January 2025. Follow-up attempts went unanswered, prompting Wednesday’s legal action.
“It should be very easy to comply with, and yet, you know, after this long, drawn-out process, here we are now having to demand that these be produced,” stated Skankey.
The Center Square reported that when it contacted the Attorney General’s Office, the agency responded that it had produced all documents required under state law.
Kris Mayes’ communications director, Richie Taylor, also told The Center Square, “Attorney General Mayes is proud to have taken on major corporate landlords and RealPage for allegedly orchestrating a price-fixing scheme that drove up rents for families across Arizona.”
Skankey responded, saying she and her team disagree with the statements made by the AG’s office, and there is no proof they complied with the state public records law.
Ethan Faverino is a reporter for AZ Free News. You can send him news tips using this link.
by Jonathan Eberle | Nov 17, 2025 | News
By Jonathan Eberle |
The Arizona Freedom Caucus (AFC) is throwing its support behind a new election-related proposal from Rep. Alexander Kolodin, announcing its endorsement for the Arizona Secure Elections Act, a measure the group says is aimed at restoring trust and stability in the state’s voting system.
The bill outlines a series of election policy changes that AFC members argue are necessary to address ongoing concerns about administration errors, delays, and voter confidence. According to the caucus, repeated issues in recent election cycles have eroded public trust and demand a comprehensive response.
“The integrity of our elections remains a top priority,” the caucus said in its statement, pointing to what it described as persistent failures that have “made it impossible for reasonable people to trust the integrity of the process and therefore outcomes.” The AFC said its legislative agenda will continue to center on tightening election procedures and removing what it views as opportunities for error or abuse.
The Arizona Secure Elections Act would make a series of changes to election laws, including affirming the principle of “one citizen, one vote”; banning campaign or ballot-measure contributions from foreign individuals or corporations; requiring government-issued identification for all voters; ending early voting at 7 p.m. on the Friday before Election Day; prohibiting ballots from being cast or accepted after polls close on Election Day; guaranteeing access to in-person voting at local polling places; and requiring mail-in voters to confirm their mailing address every election year.
If approved by lawmakers, the measure would appear on the next general election ballot for voters to decide, setting up a statewide vote as soon as 2026. AFC Chair Sen. Jake Hoffman praised both the proposal and Kolodin’s involvement, calling the act a pivotal step toward what the caucus views as long-needed structural reforms.
“With our endorsement, we will be working to ensure that Arizonans have the opportunity to vote for this Act on the 2026 ballot,” Hoffman said, crediting Kolodin and other AFC members for advancing what he characterized as essential election security priorities.
The legislation, if passed, would bypass the governor and head directly to voters for final approval. The AFC says it intends to campaign for the measure statewide ahead of the 2026 election. The proposal is likely to draw significant attention as lawmakers continue to debate voting access, election security, and administrative reforms—issues that have dominated Arizona politics across several cycles.
Jonathan Eberle is a reporter for AZ Free News. You can send him news tips using this link.
