The housing moratorium crippling new construction in the Valley imposed by Gov. Katie Hobbs’ administration may not go on for much longer.
The Maricopa County Superior Court struck down the moratorium on Tuesday in Home Builders Association of Central Arizona v. Arizona Department of Water Resources, et al.
Under Hobbs, the Arizona Department of Water Resources (ADWR) issued new groundwater regulations rolled out in November 2024 dubbed the “Unmet Demand Rule” and the “Depth-to Water Rule.”
Per the court, these rules went impermissibly beyond the longstanding obligation for builders outlined in Arizona law, which required assurance of sufficient groundwater supply in order for each development to take place (100 years’ worth).
ADWR imposed the rules based on a groundwater model claiming that unmet demand and exceedance of the 1,000-foot depth-to-water limit existed throughout Phoenix. In other words, their regulations meant a developer seeking a certificate for one subdivision had to answer not just for their development area, but for the water status of the entire Valley. This resulted in ADWR’s indefinite suspension on granting certificates to any developers.
The consequence of these regulations brought new home construction to a halt throughout Maricopa County. The Home Builders Association of Central Arizona (HBACA), a trade association for the residential construction and development industry, challenged ADWR’s authority to impose new rules.
ADWR attempted to style the Unmet Demand Rule as a new implementation of an old rule, but the Maricopa Superior Court Judge Scott Blaney rejected that view as an undoing of the necessary limitations of administrative agency powers.
“‘To permit this would neuter all statutory limits on agency rule-making[,]’” stated Blaney in his ruling, quoting HBACA’s argument.
Blaney also found that ADWR didn’t follow state law on agency rulemaking under the Administrative Procedures Act. Blaney invalidated both rules.
“ADWR acted unlawfully by implementing two agency rules without first complying with the mandatory provisions of the APA[,]” wrote Blaney.
The Arizona Free Enterprise Club (AFEC) called the court ruling a win and criticized ADWR’s model justifying the overturned regulations as flawed.
“The Maricopa County Superior Court has struck down the Hobbs Administration’s attempt to impose a sweeping housing moratorium based on its flawed water model — a stinging loss for Katie Hobbs and a ruling that the state failed to follow proper legal procedures,” stated AFEC. “This is a major victory for transparency, accountability, and Arizona homeowners.”
🚨BREAKING🚨: The Maricopa County Superior Court has struck down the Hobbs Administration’s attempt to impose a sweeping housing moratorium based on its FLAWED water model—a STINGING LOSS for Katie Hobbs and a ruling that the state failed to follow proper legal procedures.
Jonathan Riches, vice president for litigation and general counsel for the Goldwater Institute, represented the Home Builders Association of Central Arizona. Goldwater Institute’s vice president for legal affairs, Timothy Sandefur, hailed the ruling as a necessary check on an administrative state attempting to impose greater burdens than that which the law requires.
“The case is also a reminder of the dangerous power that the pervasive ‘administrative state’ wields over our daily lives — as unelected and unaccountable bureaucracies exert authority over every detail of construction, business, and property ownership, to cite just a few examples,” said Sandefur. “The only solution to the arbitrariness and lawlessness of these agencies is to rein in their power — and for courts to ensure that they obey the law.”
AZ Free News is your #1 source for Arizona news and politics. You can send us news tips using this link.
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.
The Arizona Democratic Party (ADP) is heading into the second quarter of this pivotal election year with a negative cash balance exceeding $720,000.
Their latest campaign finance report, filed last week, reflected total-to-date expenditures that nearly tripled their income: over $2.8 million compared to $1 million.
For this first period, ADP’s expenditures did fall below their income: about $67,500 compared to $151,500.
ADP experienced much stronger fundraising in the first quarter of 2022, the last midterm election year. The party’s reported income was over $370,000 and expenditures were $146,000 in that first quarter.
A stark difference was evident between ADP’s campaign finances for the last two off-years as well.
The party’s campaign finance report data for all of 2025 reflected income just below $857,000, but expenditures totaling over $2.7 million. In the first quarter of 2025, the party raised only about $210,000 and spent nearly $360,000.
Comparatively, by the end of 2023, ADP had $1.5 million more in income than expenditures. In the first quarter of 2023, ADP raised nearly $1 million and expended about $227,000.
Some among ADP leadership did warn last summer that the party would go broke by the end of the year. The party has dealt with publicized infighting for about a year.
Unlike other transfers listed, shared expenses with the Navajo County Democratic Committee (NCDC) were categorized as an “unlimited transfer” routing arrangement for ADP funds.
NCDC has a surplus of nearly $1.6 million. Since the beginning of last year, NCDC has sent over $61,000 to ADP.
In that same time period ADP sent back over $107,000 to NCDC, or $46,000 more than NCDC has sent. Their cycle to date reported a cash flow between the two totaling nearly $150,000.
Navajo County accounted for ADP’s second-largest expenditure last year.
AZ Free News contacted ADP about the state of their finances and their fiscal arrangement with NCDC. ADP didn’t respond to our inquiry.
Apart from NCDC, ADP’s number-one expenditure last year by far was $1.7 million last August to the Copper State Values PAC, established and run by Gov. Katie Hobbs’ campaign manager Nicole DeMont and treasurer Dacey Montoya. Since DeMont set up the PAC in December 2024, its primary function has appeared to be a funding arm for the Hobbs reelection campaign.
The PAC sent back $94,500 a few months later, last December.
Discounting the $49,000 received from NCDC last year, ADP’s biggest sources of income were:
United Food and Comm Workers (UFCW) Union Local 99, the largest private-sector union in the state: $100,000
Estate of the late Janet Delesanti: $49,000
Arizona Public Service: $30,000
Elevance Health Inc (formerly Anthem), an Ohio-based insurance company: $25,000
Donalyn Mikles, former attorney for the defunct Arizona Summit Law School and director of the California-based Kling Family Foundation: $20,000
Moms Fed Up, a D.C.-based political activist organization: $20,000
William (Bill) Roe, former chair of the Arizona Democratic Party: $15,000
Pam H. Grissom, founder and longtime (not current) board member for Arizona List: $15,000
AFSCME People, AFSCME’s D.C.-based political action arm: $15,000
The following donated about $10,000 each: University of Phoenix, PMI US Corporate Services, Nextera Energy Resources, Arizona Education Association Fund for Public Education, Arizona State Association of Electrical Workers, and Daniel T. Ling.
None of the Democrats’ other legislative districts or county parties in the state have reported a negative cash balance, with the exceptions of Santa Cruz County Central Democratic Committee and La Paz County Democratic Central Committee.
AZ Free News is your #1 source for Arizona news and politics. You can send us news tips using this link.
Gov. Katie Hobbs offered a false justification for her veto of legislation to rename a freeway after conservative activist and Turning Point USA (TPUSA) founder Charlie Kirk.
After backlash over her formal justification for vetoing Senate Bill 1010, Hobbs offered another explanation: she falsely claimed that renaming part of the Loop 202 freeway after Kirk would replace the part of the freeway honoring another individual: the late congressman Ed Pastor.
Pastor, a Democrat, served in the House of Representatives for nearly 25 years, from 1991 to 2015. Pastor died in 2018. His daughter, Laura Pastor, serves on the Phoenix City Council.
Contrary to what Hobbs claimed, the bill had a specific carveout to preserve Pastor’s portion of the freeway.
“That the underlying segments of the Charlie Kirk Loop 202 would retain their names and designations and those underlying segments are the Red Mountain Freeway, the Santan Freeway, and the Congressman Ed Pastor Freeway,” stated the bill.
Arizona Senate President Warren Petersen, a Republican candidate for attorney general, sponsored the bill. Ahead of her veto, Petersen urged Hobbs to continue Arizona’s tradition of honoring legacy by awarding recognition based on impact and not politics.
“Charlie Kirk called Arizona home and built a national movement rooted in free speech, civic engagement, and American values. He inspired millions, especially young people, to get involved and speak up,” said Petersen. “If the governor vetoes this bill, she’s sending a clear message: recognition now depends on political agreement.”
Six years after founding TPUSA in 2012, Kirk moved its headquarters to Phoenix in 2018. Since 2021, the organization has held its annual conference, AmericaFest, in the city.
TPUSA’s student and lifetime membership total runs in the millions, and they have impacted millions more in America and nationally. The organization also manages thousands of college and high school chapters.
Kirk was assassinated last September while speaking at a TPUSA event at Utah Valley University.
The campaign for Republican gubernatorial candidate Andy Biggs, currently congressman, issued a press release on the matter accusing Hobbs of misleading Arizonans intentionally.
“Not only was Katie Hobbs’ decision to veto the Charlie Kirk Loop 202 bill petty and callous, she’s now shamefully misleading Arizonans about why she did it,” said Biggs campaign senior advisor Drew Sexton. “This was a dishonest, partisan act by a weak and ineffective governor who has consistently failed to rise to the moment and lead our state.”
Hobbs’ initial justification for the veto, the one she gave formally, said that lawmakers needed to avoid politicized individuals when choosing who to honor.
The veto letter was a regurgitation of her previous veto letter for another bill seeking to honor Kirk’s legacy.
The governor also vetoed legislation that would have enabled Arizona drivers to purchase a specialty license plate honoring Kirk’s memory.
“I will continue working toward solutions that bring people together, but this bill falls short of that standard by inserting politics into a function of government that should remain nonpartisan,” wrote Hobbs.
Hobbs expressed sorrow over Kirk’s assassination, but said that wasn’t enough to overshadow his political background.
AZ Free News is your #1 source for Arizona news and politics. You can send us news tips using this link.
The Maricopa County Superior Court has ruled that the leading independent gubernatorial candidate does qualify for the ballot.
Hugh Lytle, an independent under the No Labels Party, announced his victory on Wednesday. Lytle is a Scottsdale businessman: founder and managing partner of El Toro Ventures, founder and board member of Equality Health, co-founder and former CEO of Univita Health, and co-founder and former president of Axia Health.
“These legal tricks to find technicalities to keep an independent off the ballot is exactly why so many people have lost faith in our system,” said Lytle. “When someone even suggests putting people ahead of parties and special interests, the system tries to shut it down. But this time, it didn’t work.”
‼️🚨HUGH IS ON THE BALLOT 🚨‼️
For a long time, a lot of people felt like they didn’t have a voice.
Today changed that.
This was a win for Arizona and for every Independent across the state.
— Hugh Lytle for Governor (@hughforgovernor) April 15, 2026
In a statement given to the media, Lytle claimed the legal challenge against him was rooted in Gov. Katie Hobbs feeling threatened by his candidacy. Lytle has claimed Hobbs was behind the lawsuit because her former chief legal advisor, Sambo “Bo” Dul, was one of the attorneys representing the case against him.
“The judge’s decision is not a personal win for me. It’s a win for the voters, for democracy and for Arizona’s growing Independent movement which gains momentum every day,” said Lytle. “Perhaps that’s why Gov. Hobbs is afraid to face me in an election.”
At contest was the validity of Lytle’s petition sheets, which used a UPS store address located in one district rather than his residential address located in a separate district. Maricopa County Superior Court Judge Michael Mandell ruled that district locations didn’t matter for statewide races.
“Mr. Lytle is running for statewide office, not district, precinct, or municipal office. Both the UPS store address and his physical address are in Scottsdale,” stated Mandell. “There is no dispute that Mr. Lytle has been an Arizona resident for many years, that he resides in Maricopa County, and that he satisfies the constitutional and statutory residency requirements for Governor.”
Lytle faced multiple challenges to his candidacy, one from his primary opponent Teri Ann Hourihan, and another from a former Democratic Party legislative district leader, Craig Beckman.
Lytle pledged to not take any salary as governor. He announced his intent to donate his entire first-year salary as governor to Teen Lifeline, and then the remaining years to other charities.
Hugh is committed to donating his entire first-year salary as Governor of Arizona to Teen Lifeline.
After that, he would continue giving his salary to other charities making a real difference across Arizona.
— Hugh Lytle for Governor (@hughforgovernor) April 7, 2026
The No Labels Party attempted to brand itself as the Arizona Independent Party with the help of Secretary of State Adrian Fontes, but the Maricopa County Superior Court ruled against the move as an unlawful “political bait and switch” last month.
There were 21 candidates who filed statements of interest under the No Labels Party, including three for governor (Lytle, Hourihanm and Alan White).
Lytle’s platform includes establishing a mentor corps for youth entrepreneurs, expanding state charity donation benefits, expanding tax deductibility and charity benefits to cover youth sports, increasing teacher pay, limiting school choice by income, and reducing Medicaid costs.
AZ Free News is your #1 source for Arizona news and politics. You can send us news tips using this link.
