The coalition behind a ballot initiative to roll back the universality of Arizona’s school choice program is facing a campaign finance complaint.
On Thursday, the Protect Education Accountability Act Now Committee (PEANC) was made subject to a complaint, reviewed by AZ Free News. PEANC was accused of falsely claiming that out-of-state contributors amounted to a mere nine percent of funding.
PEANC filed the ballot initiative, “Protect Education Act” last month. If approved, the initiative would impose an income cap on enrollment in the Empowerment Scholarship Account Program, among other restrictions to include an elimination of funding rollover. The Protect Education Act superseded an earlier version, the “Protect Education, Accountability Now Act.”
In order to make the ballot, the initiative will need nearly 256,000 signatures. PEANC reported gathering over 150,000 signatures during a virtual press conference on Friday.
The complainant, Jack Johnson Pannell, cited a disclaimer posted to the bottom of PEANC’s website. That disclaimer reflects PEANC’s total out-of-state contributors account for only nine percent of its total funding.
Arizona law requires political action committee advertisements to disclose the aggregate percentage of out-of-state contributors as calculated at the time the advertisement was produced for publication, display, delivery, or broadcast.
Pannell’s complaint called for a declaration that PEANC violated Arizona campaign finance disclosure law and an action against the committee.
Pannell said on X that Arizona families deserve the truth behind PEANC. Pannell is the founder of Trinity Arch Prep School for Boys, a microschool.
“More than 100,000 families are choosing great options for educating their children,” said Pannell. “It’s a cheap shot to accuse hardworking people of cheating the system. It just ain’t true.”
I’m proud to file this complaint because AZ families deserve the truth. More than 100,000 families are choosing great options for educating their children. It’s a cheap shot to accuse hardworking people of cheating the system. It just ain’t true. #schoolchoicehttps://t.co/FFz9MkTWLh
Contrary to this disclaimer, campaign finance records reveal that 98 percent — $4.5 million, or nearly all of PEANC’s $4.6 million in funding — have come from special interest groups in Washington, D.C.
That $4.5 million came from the National Education Association in four allotments delivered throughout February and March. The first payments from the NEA (over $2.3 million) came on February 13 — exactly a week after PEANC registered their website domain.
The earliest available archived version of the site captured on February 12 reflected an out-of-state contributions disclosure totaled at 50 percent.
Other major donors included the Arizonans For Quality Education ($50,000), Nita and Phil Francis ($25,000), and Arizona Education Association ($10,000).
99 percent of AFQE’s funding has come from “shadow sponsors”: unnamed corporations and LLCs. The remainder of the funding, less than half of a percent, came from Christopher Kotterman on behalf of the Friends of ASBA.
Kotterman became a senior policy advisor for Gov. Katie Hobbs in late 2024.
Phil Francis is the retired chairman and CEO of PetSmart; Nita Francis formerly chaired the Valleywise Health Foundation board.
Correction: A previous version of this story incorrectly listed Justan Rice as the current chairman of Arizonans For Quality Education (AFQE). Rice left AFQE in June 2025 before the donation to PEANC was made.
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Congressman Abraham Hamadeh (R-AZ-08) announced his letter to Secretary of Veterans Affairs Doug Collins to adopt common-sense reforms to the VA Home Loan Guarantee Program.
The goal is to eliminate outdated bureaucratic hurdles, reduce unnecessary costs, and better align the program with today’s competitive housing market so more young veterans can achieve the American Dream of homeownership.
In a formal letter to Secretary Collins, Congressman Hamadeh highlighted the Trump administration’s strong progress in refocusing the Department of Veterans Affairs on its core mission: delivering timely benefits, expanding access to quality care, slashing the claims backlog, and eliminating waste. Building on that momentum, Hamadeh expressed confidence that practical improvements to the home loan program will receive serious consideration.
“As my fellow veteran and Committee member, Congressman Van Orden said in our hearing on the subject, we must find ways to eliminate the unnecessary administrative costs of the VA Home Loan program and better align it with other Federal housing programs,” said Congressman Hamadeh. “My family is in real estate. I am very familiar with housing, and I know the unintended consequences of bureaucratic policies that have little to no protective value and ignore the realities of the marketplace.”
Congressman Hamadeh’s recommendations focus on four key areas where the VA Home Loan program lags behind other federal housing programs, such as FHA and USDA loans:
Ending Origination Fee Stacking: VA rules cap lender origination and administrative fees at 1% of the loan amount, intended to cover all lender labor and overhead. However, veterans report lenders charging the full 1% while adding separate itemized fees for processing, underwriting, and other services. This practice amounts to an unfair cash grab that increases costs for veterans and should be strictly enforced.
Modernizing Underwriting Process: The VA continues to rely heavily on manual underwriting, resulting in average closing times of about 10 business days. In contrast, the FHA has implemented semi-automated systems that can approve straightforward loans in as little as 2 to 7 days. The Mortgage Bankers Association has testified that automated underwriting would accelerate the process and help reduce the perception that VA loans are slower and more cumbersome.
Raising the Seller Concessions Cap: The VA currently limits seller concessions to 4% of the home’s reasonable value. Both FHA and USDA programs allow up to 6%. In competitive markets, this 2-percentage point difference can mean the difference between a veteran’s offer being accepted or denied.
Addressing Appraiser Shortages Through Reasonable Certification Requirements: The VA has identified 436 counties in 31 states facing appraiser shortages that delay loans and drive up costs. A major contributor is the VA’s stringent experience requirement of 3 to 5 years for certification, compared to just 12 to 18 months for FHA and USDA programs. Aligning standards would increase the pool of qualified appraisers, shortening waiting times and lowering fees.
These targeted reforms would remove barriers without compromising program integrity, helping young veterans secure homes more efficiently and affordably. By modernizing the program, VA can better fulfill its promise to those men and women who have sacrificed for our country.
Ethan Faverino is a reporter for AZ Free News. You can send him news tips using this link.
The Chamber of Southern Arizona announced Tuesday that Alison Flynn Gaffney, chief executive officer of Banner – University Medicine Tucson, will serve as chair of its Board of Directors beginning July 1, 2026.
Gaffney oversees more than 8,000 employees across Banner – University Medical Center Tucson, Banner – University Medical Center South, Diamond Children’s Medical Center, and 28 clinics in Tucson and surrounding communities, according to the organization. Banner – University Medical Center Tucson was ranked the No. 4 hospital in Arizona and the top hospital in Tucson for the second consecutive year by U.S. News & World Report.
According to a press release from the Chamber, Gaffney will succeed current board chair and Tucson Electric Power (TEP) CEO Susan Gray, who has served in the role during the organization’s recent merger of Sun Corridor Inc. and the Tucson Metro Chamber.
“Susan Gray did a tremendous job, and I am excited to continue the momentum she helped build,” Gaffney said. “The Chamber is a strong organization, and I look forward to contributing to its mission to help our communities and businesses flourish.”
Gray said the combined organization has focused on economic development and business advocacy.
“I am immensely proud of the work over the last two years,” Gray said. “With The Chamber of Southern Arizona, we have created a new powerhouse organization driving sustainable economic growth and job creation.”
Chamber President and CEO Joe Snell said the organization is focused on regional competitiveness and economic development.
“We’re excited to welcome Alison as Chair,” Snell said. “We’re at a critical juncture where regionalism, competitiveness, and leveraging our region’s strengths for economic development success are top focus areas.”
The Chamber also announced three new members to its Board of Directors: Jose Arias, Vice President of Business Banking at First Citizens Bank; Marco Melancon, General Manager of Bombardier Aviation’s Tucson Service Center; and retired Gen. Robin Rand, President and CEO of the Kyl Institute for National Security.
According to the organization, the Chamber of Southern Arizona represents businesses employing approximately 85,000 people and works with leaders from the private sector, government, nonprofit organizations, and academia on economic development, advocacy, and public policy initiatives.
Democratic congressional candidate Joanna Mendoza declined to answer questions this week about campaign support from Sen. Ruben Gallego (D-AZ) and a political action committee founded by former Democratic California Congressman Eric Swalwell.
Mendoza, who is running in Arizona’s 6th Congressional District, has publicly highlighted endorsements from both Gallego and Future Forum PAC, a political organization founded by Swalwell.
In a September social media post, Mendoza wrote, “ENDORSEMENT ALERT! Honored to have the support of Future Forum PAC!” She added, “Future Forum is dedicated to empowering the next generation of leaders in Congress, and together we’ll deliver a stronger, fairer future for every family in #AZ06.”
Future Forum PAC was founded by Swalwell, though references to him have reportedly since been removed from the PAC’s website.
Mendoza’s campaign website also prominently displays endorsements from Gallego and Future Forum PAC.
According to Breitbart News, Mendoza declined to answer multiple questions regarding her continued acceptance of support from Gallego and organizations linked to Swalwell following recent allegations against the former congressman.
Arizona Democrat Joanna Mendoza took THOUSANDS from Ruben Gallego & Eric Swalwell's PACs
Mendoza proudly displays their endorsements
But asked about this, she refused to answer as her Democrat supporters FLIPPED OUT
During the exchange, Mendoza was asked whether she still supported Gallego despite his longtime friendship with Swalwell and whether she believed Gallego’s statements that he was unaware of allegations regarding Swalwell’s conduct. Mendoza did not respond to the questions.
“Lobbyist Joanna Mendoza’s website still touts her endorsement from Ruben Gallego and an Eric Swalwell-founded PAC while she refuses to ditch their money,” National Republican Congressional Committee spokesman Ben Petersen said in a statement released alongside video of the exchange. “Mendoza has gone radio silent, but Arizona voters see right through it.”
Swalwell suspended his gubernatorial campaign and later resigned from Congress after multiple allegations of sexual misconduct surfaced.
One accuser, Lonna Drewes, alleged during a press conference that Swalwell sexually assaulted her after they met socially in 2018. Drewes said Swalwell offered to help her software business and invited her to public events before the alleged assault.
“He raped me, and he choked me, and while he was choking me, I lost consciousness, and I thought I died,” Drewes said during the press conference, according to the outlet.
“I knew he was married at the time and that his wife was pregnant,” she said. “He was my friend.”
Swalwell has denied the allegations.
Gallego later distanced himself from Swalwell following the allegations. However, Gallego has also faced allegations of misconduct.
Last week, Rep. Anna Paulina Luna said Senate Majority Leader John Thune’s office and Senate ethics officials were reviewing information related to allegations involving Gallego as well as possible campaign finance violations, as reported by CBS News.
With Arizona’s legislative session scheduled to close this week, small business owners are still left in a lurch over a lack of tax conformity.
Twice this year Gov. Katie Hobbs has vetoed legislation that would have provided full conformity in the tax code with the One Big Beautiful Bill Act passed last summer. The governor maintains that the best path forward would not be full conformity, but rather partial.
Gov. Hobbs wanted the Republican-led legislature to get on board with the Democratic minority’s Middle Class Tax Cuts Package.
The Arizona Free Enterprise Club, a free market policy organization, said Hobbs’ preferred conformity package would require Arizonans to file taxes twice and increase taxes by $200 million.
File your taxes twice. Pay more. Welcome to Katie Hobbs’ Arizona.
After vetoing two full conformity bills, Hobbs helped turn what should have been a routine tax update into a full-blown mess in the middle of filing season. Her administration issued forms based on full… pic.twitter.com/eS5n6tiWfm
That threat of double-filing, per Senate President Warren Petersen (R-LD14), has been mitigated because the tax forms sent out by the state aligned with what the Republicans brought to the table (and Hobbs rejected).
Prior to the first veto, the Arizona Department of Revenue issued its advice on filing under the new changes to federal tax law.
Republican leadership in the legislature urged Arizonans to file their taxes, promising to not support any conformity package that would effectively “punish Arizona taxpayers” and require refiling.
“For tax year 2025 we will not support anything that forces Arizonans to refile,” said Petersen.
“Any outcome that requires you to amend your return or pay more is a nonstarter,” said House Speaker Steve Montenegro (R-LD29).
Gov. Hobbs justified her vetoes under the claim that Trump’s One Big Beautiful Bill would require poorer Arizonans to shoulder more of the tax burden.
“We should not hold tax cuts for over 88 percent of Arizonans hostage in order to force through tax breaks for special interests,” said Hobbs. “Other questions of tax conformity must be decided through budget negotiations, following the precedent set by Governor Ducey.”
Sen. Petersen rejected Hobbs’ view of the federal tax changes.
Petersen dismissed Hobbs’ claim as “a nice talking point” that ignored what he says is the reality of how the federal legislation impacts an overwhelming majority of the state’s business transactions.
“That’s just not true,” said Petersen. “We’re talking about tax on tips, we’re talking about tax on car interest loans, we’re talking about no overtime. These are not rich people. These are small business owners. 90 percent of business transactions are small business owners.”
“It’s a nice talking point, but it’s really not true.”
Arizona Senate President Warren Petersen joined @AZMorningNews to push back on Gov. Katie Hobbs after she vetoed Arizona tax conformity and tax-cut bills tied to federal changes.
Chad Heinrich, Arizona director of the National Federation of Independent Business (NFIB), toldThe Phoenix Business Journal that the lack of conformity will cause increased taxes on over 700,000 small businesses in Arizona. Heinrich blamed Hobbs.
“Not conforming with the key business provisions is, in practical effect, a tax increase on the Arizonans who can least absorb it — those who own and operate Arizona’s small businesses,” said Heinrich. “The Legislature has done its part. Governor Hobbs should finish the job, now, before one more small business owner has to guess about their future.”
AZ Free News is your #1 source for Arizona news and politics. You can send us news tips using this link.
Congressman Abraham Hamadeh (R-AZ-08) recently introduced H.R. 8331, known as the Maverick Act of 2026, a bipartisan measure to preserve three of the final remaining F-14 Tomcat fighter jets for historical display and public education.
The legislation is the House companion to Senate Bill 4161, introduced by Senator Tim Sheehy (R-MT). Original cosponsors joining Congressman Hamadeh include Rep. Juan Ciscomani (R-AZ-06), Rep. Jen Kiggans (R-VA), Rep. Austin Scott (R-GA), Rep. Rich McCormick (R-GA), Rep. Jack Bergman (R-MI), Rep. Jake Ellzey (R-TX), Rep. Don Davis (D-NC), and Rep. James Moylan (R-GU).
Congressman Hamadeh, a former U.S. Army officer, emphasized the personal and cultural importance of the legendary fighter jets. “As a young man, I was inspired by the popular Tom Cruise movie Top Gun, which featured the F-14, one of the most iconic aircraft ever flown,” stated Congressman Hamadeh. “As a former U.S. Army officer, I know that many of the men and women I served with felt the same way. That is why I proudly introduced this legislation.”
The Maverick Act would authorize the Secretary of the Navy to transfer three specific F-14 Tomcats to the U.S. Space and Rocket Center Commission in Huntsville, Alabama. The aircraft would be conveyed at no cost to the federal government through a conditional deed of gift.
Currently, strict post-retirement rules have resulted in the destruction of nearly all F-14 airframes. This bill creates a narrow exception, allowing the three aircraft to be fully demilitarized and preserved under rigorous national security protections. The legislation explicitly prohibits any restoration of combat capability and bans any future foreign transfers.
All expenses related to transportation, restoration, operation, and maintenance of the aircraft will be the responsibility of the U.S. Space and Rocket Center Commission. The jets will be provided in “as-is” condition, with the Navy permitted to include relevant technical manuals and limited excess spare parts needed for restoration and static display. The Commission may partner with qualified nonprofit organizations to help restore the aircraft.
“Because this legislation does not come at a cost to our hard-working taxpayers, I expect that my fellow fiscal conservatives will happily support this legislation,” added Hamadeh. “I am grateful to the cosponsors of the bill, who have already offered their enthusiastic support.”
Strong safeguards are built into the bill, including a rescission clause that returns ownership to the United States if any conditions are violated. The aircraft must remain demilitarized and may only be used for public displays, airshows, and commemorative events celebrating U.S. naval aviation heritage. All activities will comply with FAA regulations and applicable export control laws.
In a separate but related preservation victory, Congressman Hamadeh secured language in the FY26 defense bill – signed into law by President Trump – that rescued five historic T-37 jet trainers from destruction at Tucson’s aircraft boneyard. These aircraft, which trained generations of pilots, aces, astronauts, and the nation’s first female aviators, will now be restored by the Arizona Aviation Historical Group to support STEM education, aviation heritage, and military recruitment.
Ethan Faverino is a reporter for AZ Free News. You can send him news tips using this link.
