by Staff Reporter | May 7, 2026 | News
By Staff Reporter |
Gov. Katie Hobbs’ overruled housing moratorium could leave taxpayers on the hook for more than $1 billion in compensation to builders.
The housing moratorium was a result of the Arizona Department of Water Resources’ (ADWR) indefinite suspension of developer certificates throughout the Valley based on new groundwater regulations imposed under Hobbs in 2024.
For decades, state law required developers to prove 100 years of assured water supply for their developments. Once Hobbs took office, ADWR imposed new regulations that expanded developers’ duty to prove assured water supply beyond their development into the surrounding water management area.
The Home Builders Association of Central Arizona (HBACA) sued ADWR over the regulations last January, represented by the Goldwater Institute. Last month, the Maricopa County Superior Court sided with HBACA and struck down the moratorium. Judge Scott Blaney found that ADWR violated Arizona law on the extent of its powers and on agency rulemaking.
ADWR plans to appeal the ruling.
A former ADWR director and one of the leading policymakers behind the legacy rule on assured water supply (the 1980 Groundwater Management Act) spoke out against the superior court ruling.
Kathleen Ferris, now an Arizona State University (ASU) senior research fellow with the Kyl Center for Water Policy, told KJZZ last month that ADWR was justified in its rulemaking because it had discovered that Phoenix-area groundwater was more interconnected than understood previously.
Whether that court ruling will stand on appeal or no, taxpayers will likely be on the hook for hundreds of millions — perhaps over a billion — in builder compensation claims filed under the Private Property Rights Protection Act, enacted under Proposition 207.
Prop 207 entitles property owners to just compensation for any land use laws’ impact on the use, division, sale, or possession of their property that reduces its fair market value.
One such Prop 207 claim is already underway.
Last September, developers Buckeye Tartesso and Buckeye Tartesso II filed a claim demanding over $320 million in compensation for lost value due to the ADWR rule. That figure, however, reflected only a low estimate which the developers felt they could accept as a settlement.
“[This figure] incorporates a number of conservative assumptions, and the [developers] expect that actual, proven damages would be significantly higher,” read the demand letter. “This demand is an offer of settlement, in the nature of a compromise, and the [developers] reserve the right to seek additional or different damages if litigation is necessary.”
ADWR prevented the developers from obtaining a certificate of assured water source for the Tartesso development in the city of Buckeye, which spanned over 12,800 acres. As a consequence, they were prohibited from subdividing or selling lots on that property.
The Goldwater Institute filed the claim on behalf of the developers.
Should all builders file similar claims, taxpayers could be on the hook for over $1 billion in compensation payments at a time when the state is already struggling with budget woes.
Gov. Hobbs inherited a budget surplus of over $2.5 billion from her predecessor, Republican governor Doug Ducey. After two years in office, the budget plunged to a $1.4 billion deficit: a near-180 on the state’s fiscal health.
The latest figures reflect a slightly better status, though still nowhere near in the black: a deficit of over $300 million, according to Rep. David Schweikert (R-AZ-06).
AZ Free News is your #1 source for Arizona news and politics. You can send us news tips using this link.
by Staff Reporter | May 7, 2026 | Education, News
By Staff Reporter |
Peoria Unified School District (PUSD) retained a new governing board president following a charged special meeting on Tuesday night.
Former governing board president Heather Rooks lasted five months into her second elected term. Rooks was removed over what a majority on the board alleged was an undermining of their credibility and integrity involving a criminal investigation referral.
The board majority argued that Rooks defied the board’s authority in multiple ways, most recently by requesting the Maricopa County Attorney’s Office investigate Centennial High School officials for mandatory reporting violations in connection to the ongoing criminal cases involving former teachers Haley Beck and Angela Burlaka.
Beck and Burlaka face charges for the alleged sexual abuse of at least one student, though investigators have indicated in recent weeks that the victim pool may be bigger.
The board voted to delay a decision on launching a third-party, internal investigation due to other ongoing investigations by law enforcement. That would make the seventh investigation on the matter.
Also cited as a grievance by the board majority was Rooks’ media interviews in which she expressed criticisms of school administration over the handling of sexual abuse complaints. Rooks alleged the existence of “red flags” known to school administrators, something which has not been declared or proven by investigators.
The board voted 3-2 to replace Rooks with Jeff Tobey. Rooks and board member Janelle Bowles voted against Rooks’ ouster and spoke at length in Rooks’ defense.
Public comment ran for nearly an hour. Over 20 speakers showed up; slightly more speakers wanted to see Rooks replaced, while the remainder defended Rooks.
Rooks has maintained that she filed the internal investigation request in her capacity as a parent, not the board president. Rooks also claimed that her removal constituted retaliation over her speech.
“From a legal standpoint, when protected speech is followed by an adverse action and there is a causal connection between the two, it raises legitimate First Amendment concerns, including potential retaliation,” said Rooks. “If raising concerns about student safety and compliance leads to the removal from leadership, it risks creating a chilling effect, not just for me but for anyone who would otherwise speak up.”
Maricopa County Attorney Rachel Mitchell’s investigatory efforts into high school officials were underway well prior to Rooks’ request. Peoria police have already stated publicly that they don’t plan to file any charges for mandatory reporting failures.
Ewing accused Rooks of undermining the board on its decision to wait for officials to conclude their own investigations into the matter. Ewing said Rooks was advancing theories and claims without evidence, something she said could risk harming prosecution efforts against the two teachers. This was a talking point that echoed throughout public comment advocating for Rooks’ ouster.
“She is advancing a narrative based on belief rather than evidence, despite her direct knowledge of interviews, investigative steps, and findings discussed in multiple executive sessions,” said Ewing.
Though critical, Tobey and Board Member Becky Proudfit had kinder words for Rooks. Proudfit said Rooks had PUSD students’ best interests at heart, but that intent didn’t justify her actions.
Tobey expressed support for Rooks’ freedom of speech generally but clarified that he was “disappointed” in her actions because they reflected her “opinions” and not the facts of the cases.
“I’ve learned the hard way that parallel investigations can interfere with one another,” said Tobey. “I don’t want to give any alleged pedophile any chance or upper hand in trial.”
Rooks accused the Arizona Education Association of coordinating the special meeting that resulted in her removal.
“Peoria School Board Members will vote tomorrow on a new President because the Arizona Teacher Union is calling for me to be removed as President,” said Rooks.
AZ Free News is your #1 source for Arizona news and politics. You can send us news tips using this link.
by Ethan Faverino | May 7, 2026 | Economy, News
By Ethan Faverino |
The U.S. trade deficit widened in March, according to analysis released earlier this week by the Joint Economic Committee based on data from the Bureau of Economic Analysis, U.S Census Bureau, Treasury Department, and Bureau of Labor Statistics.
The total trade deficit reached $60.3 billion in March, an increase of $2.53 billion from February and 3% above the 12-month average. The goods trade deficit stood at $88.71 billion up $4.09 billion from the prior month and also 3% above its 12-month average. This was partially offset by a services trade surplus of $28.41 billion, which rose $1.56 billion from February and was likewise 3% above average.
For the full 12 months through March 2026, the United States recorded a total trade deficit of $700.49 billion. This reflected a goods trade deficit of $1.03 trillion, partially offset by a services trade surplus of $331.39 billion. Total exports over the period reached $3.53 trillion, while total imports totaled $4.23 trillion.
Largest Trade Imbalances by Country
Over the trailing 12 months, the largest goods trade deficits were with Mexico ($194.42 billion, 18.96% of the total goods deficit), Vietnam ($193.35 billion, 18.86%), and Taiwan ($177.28 billion, 17.29%). Additional notable deficits occurred with China, Thailand, Ireland, Germany, Japan, South Korea, and India.
The largest goods trade surpluses were recorded with the Netherlands ($68.49 billion), United Kingdom ($47.42 billion), and Hong Kong ($40.32 billion).
Top Exports and Imports
The leading exported goods by value were civilian aircraft, engines, equipment, and parts; pharmaceutical preparations; and nonmonetary gold. Together these categories accounted for 17.54% of all U.S. goods exports over the 12-month period.
The United States exported the most to Mexico ($347.18 billion), Canada ($327.56 billion), and the United Kingdom ($109.51). These three destinations represented 34.72% of total U.S. exports.
On the import side, the top categories by value were computers; pharmaceutical preparations; and passenger cars, which together made up 19.74% of all imported goods. The largest sources of imports were Mexico ($541.61 billion), Canada ($365.62 billion), and China ($266.59 billion), accounting for 35.74% of total U.S. imports.
Import Duties Decline
In March, the U.S. collected $20.49 billion in import duties—18.40% below the 12-month average—with the average applied duty rate at 6.85%, down 2.45 percentage points from the yearly average. Over the full 12 months, calculated duties totaled $301.30 billion.
The highest duty revenues came from passenger cars, vehicle parts, and electric apparatus, with notably higher average rates applied to certain categories such as iron and steel products. China remained the top source of duty revenue.
Currency Movements and Terms of Trade
From March 2025 to March 2026, the U.S. dollar weakened against several major currencies: by 4.9% against the Chinese yuan, 6.3% against the euro, 2.2% against the British pound, and 11.9% against the Mexican peso. It strengthened 6.1% against the Japanese yen.
A stronger dollar typically improves U.S. terms of trade by reducing the cost of imports, allowing the country to purchase more foreign goods for the same volume of exports.
Export and Import Price Trends
Year-over-year export prices rose 5.57 percent overall, while import prices increased 5.10%. Non-fuel import prices rose 5.85%, with notable variations across categories including industrial supplies and consumer goods.
Ethan Faverino is a reporter for AZ Free News. You can send him news tips using this link.
by Matthew Holloway | May 6, 2026 | News
By Matthew Holloway |
Arizona Gov. Katie Hobbs vetoed the Republican-backed state budget proposal Tuesday, calling the plan “unbalanced and reckless,” while Republican gubernatorial candidate Andy Biggs sharply criticized the decision and accused Hobbs of blocking tax relief efforts.
In a statement issued by the Governor’s Office, Hobbs said the GOP proposal would “default on our debt obligations, endanger vulnerable children, slash critical public safety funding, and pay for tax breaks to billionaires, data centers, and special interests by kicking Arizonans off their healthcare and taking food off their tables.”
The Republican proposal, passed by the Legislature largely along party lines, included tax cuts tied to federal tax conformity measures, reductions to agency spending, and changes to several state programs. The proposal would have implemented major portions of federal tax cuts adopted in last year’s federal legislation and reduced spending across most state agencies.
Legislative Republicans said the proposal spent roughly $800 million less than Hobbs’ January budget proposal.
The veto follows weeks of tension between Hobbs and Republican legislative leadership over budget negotiations and education funding. On April 13, Hobbs announced she would veto nearly all legislation sent to her desk until Republican lawmakers produced a budget proposal and returned to negotiations.
Following Hobbs’ veto on Tuesday, Congressman Andy Biggs’ (R-AZ05) gubernatorial campaign circulated a statement accusing the governor of repeatedly rejecting tax relief measures.
“The Veto Queen is at it again,” a graphic released by the campaign stated. “Katie Hobbs has now vetoed over $1 billion in tax relief for Arizona workers, families, and small businesses for the 3rd time in 5 months as our state’s affordability crisis deepens.”
Biggs also said he had previously worked on multiple state budgets during his tenure as president of the Arizona Senate.
“As a former State Senate President, I’ve written multiple state budgets and worked with different governors to put forward structurally sound and responsible budgets that protect public safety and allow Arizonans to keep more of their money,” Biggs stated.
“It takes patience, leadership, and a commitment to good-faith work between the governor and the Legislature. Katie Hobbs has shown she has none of those attributes, which is why she keeps falling back on simply vetoing bills and budgets. Arizonans deserve a leader with a vision, not vetoes. In November, we’ll make that change.”
Arizona House Speaker Steve Montenegro (R-LD29) also criticized Hobbs following the veto, accusing the governor of pursuing higher spending priorities.
“Once again Gov. Hobbs creates fiscal chaos for Arizona as she fights for her California-style budget,” Montenegro wrote in a post on X. “This budget focuses on what matters most to Arizona families, higher take-home pay, lower costs.”
“What we will not do is allow this governor to raise taxes and spend more for her programs on the backs of every family in Arizona,” Montenegro added.
Despite the veto, Hobbs’ office indicated negotiations could resume. According to KJZZ, the governor’s office said Hobbs had reached out to legislative leadership seeking additional budget meetings this week.
The Legislature adjourned after passing the proposal, with lawmakers expected to return in June unless leadership calls them back sooner. However, Arizona Senate President Warren Petersen (R-LD14) pushed back on claims that Republican lawmakers were taking an extended break following passage of the budget proposal.
Responding to a social media post by journalist Craig Harris stating that “The GOP-controlled Arizona Legislature is taking a one-month paid vacation,” Petersen wrote on X, “This is false, the Senate will be back on Monday and many members, myself included will be there every day this week.”
“The governor placed a moratorium on bills and we delivered a budget. There is no floor work to do,” Petersen added.
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 | May 6, 2026 | News
By Ethan Faverino |
The U.S. House of Representatives unanimously approved an amendment presented by Congressman Eli Crane (R-AZ-02) to accelerate recovery efforts in the Kaibab National Forest following the devastating White Sage Fire.
The amendment, included in the 2026 Farm Bill, grants the U.S. Forest Service critical emergency contracting flexibilities to bypass unnecessary bureaucratic delays and speed up restoration work in the fire-affected areas.
Modeled after the North Rim Restoration Act of 2025, the measure targets nearly 60,000 acres impacted by the wildfire in Northern Arizona.
“Page, Fredonia, the Kaibab Band of Paiute Indians, and other impacted communities were dealt a setback due to the devastating White Sage Fire,” stated Rep. Crane. “In response, I’m honored to have introduced and passed an amendment to help pave the way to a full and timely recovery.”
Key provisions of Rep. Crane’s Amendment (Sec. 8409 – Kaibab National Forest Restoration):
- Authorizes the use of emergency acquisition flexibility under federal regulations to contract for forest management restoration activities, rebuilding, planning, design of structures, ground improvements, and other recovery efforts.
- Removes the need for a Presidential emergency or disaster declaration, allowing immediate action to support local communities.
- Requires robust transparency through detailed reports to Congress every 180 days on expenditures, expected costs, cost overruns, contractor performance, potential conflicts of interest, waste/fraud/abuse, and project timelines.
- Includes a 12-month extension option if new wildfires impact ongoing recovery, subject to congressional approval.
- Sunsets the authority five years after enactment or upon completion of recovery efforts, whichever comes first.
In addition to his own amendment, Rep Crane signed on as the sole cosponsor of an amendment led by Rep. Anna Paulina Luna (R-FL) to eliminate provisions that shielded pesticide companies from accountability while preserving critical public health protections. The measure restores Americans’ right to hold these companies accountable in court when their products cause harm.
He also cosponsored an amendment introduced by Rep. Paul Gosar (R-AZ-09) to reform evidence standards for compensating ranchers for livestock losses caused by Mexican wolves.
“I’m also grateful for the leadership of Representatives Gosar and Luna, who successfully passed provisions that assist our ranchers and help protect our food supply,” added Crane. “These results advance critical priorities for rural Arizonans, and I’m thankful for the positive outcomes.”
The amendments now move forward as part of the broader Farm Bill package.
Ethan Faverino is a reporter for AZ Free News. You can send him news tips using this link.
by Matthew Holloway | May 6, 2026 | News
By Matthew Holloway |
The Republican Party of Arizona announced Tuesday that Dr. Mehmet Oz, administrator of the Centers for Medicare & Medicaid Services and a prominent figure in the “Make America Healthy Again” (MAHA) movement, will headline the party’s annual Legislative Salute event on May 9 in Mesa.
According to a press release from the Arizona Republican Party, the event, marking the revival of a longstanding party tradition, will be held at the Mesa Sheraton Hotel and will recognize Republican lawmakers in the Arizona Legislature.
“Dr. Oz, Administrator for the Centers for Medicare & Medicaid Services and a leader of the MAHA (Make America Healthy Again) movement, actively serves on the front lines in the battle against fraudsters who exploit the Medicaid system in primarily blue states and in Arizona under Democrat Governor Katie Hobbs,” the release stated. As reported by Fox News, Dr. Oz is actively investigating fraud, waste, and abuse in five states, with more to come, telling the outlet his concerns reach all fifty states. “We’ve written letters to Minnesota, California, a letter to Florida because we’re worried about the durable medical equipment fraud … New York, Maine, and there are more coming,” Dr. Oz told the outlet. He went on to cite evidence that foreign nationals from Cuba, Russia, and China are involved in fraud schemes all over the country.
“For years, the Republican Party of Arizona (AZGOP) has hosted the annual Legislative Salute to honor the hard-working Republicans in the Arizona Legislature who serve the public and fight waste, fraud, and abuse on the local level,” AZGOP Chair Sergio Arellano said in a statement. “After this year’s successful legislative session, we decided this was the right time to revive this great tradition.”
Arellano also referenced the Republican-backed $17.9 billion state budget proposal for fiscal year 2027. The budget features $1.45 billion in tax relief over four years and would spend approximately $800 million less than Governor Katie Hobbs’ opposing proposal.
“Republican legislators have delivered a budget that includes tax relief for Arizona residents,” Arellano stated. “They deserve recognition for their tremendous service to this state, and this event will provide an excellent opportunity for Republicans to come together and celebrate our conservative majority in the Legislature and make plans to keep it.”
Tickets for the event are available through the Arizona Republican Party.
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.
