by Matthew Holloway | Jul 16, 2026 | News
By Matthew Holloway |
Gov. Katie Hobbs has signed an executive order prohibiting Arizona executive branch employees from using nonpublic government information to profit through prediction markets.
The governor signed Executive Order 2026-02 last week, directing covered state employees to refrain from disclosing or using information obtained through public service to earn profits, avoid financial losses, or help another person or organization financially benefit from prediction-market transactions.
Violations may result in dismissal, other employment sanctions, or referral to law enforcement, according to the order.
“Arizonans deserve a state government that works for them, not one where insiders exploit public service for their own gain,” Hobbs said. “I’m proud to set clear, commonsense ethical standards on prediction markets to hold our government accountable. Public service is a privilege, and we will not tolerate anybody abusing that privilege to line their own pockets.”
Prediction markets allow participants to trade contracts tied to the outcome of future events, including elections, government actions, military operations, weather, sporting events, and economic developments.
The Commodity Futures Trading Commission describes event contracts as swaps that are often structured around yes-or-no outcomes. Their prices reflect market expectations, and contracts typically provide a fixed payout, usually $1, when the selected outcome occurs.
Hobbs’ order designates as confidential any nonpublic information obtained by covered executive branch workers that could be used to profit or avoid a loss through a prediction market.
That provision corresponds with Arizona’s conflict-of-interest law, ARS §38-504(B), which prohibits public officers and employees from using appropriately designated confidential information for personal profit during their government service and for two years afterward. The law also prohibits the unauthorized disclosure or use of information declared confidential by law.
The order covers employees and officers of the Governor’s Office, executive departments, state agencies and offices, and most state boards and commissions.
Its definition excludes agencies headed by a single independently elected state official, the Arizona Corporation Commission, and boards or commissions established by ballot measure during or after the November 1998 general election.
Hobbs encouraged other statewide elected officials, independent boards and commissions, and the legislative and judicial branches to establish comparable policies for their employees.
The order does not create an independent legal claim or remedy and cannot serve as the basis for challenging an action or inaction by a state agency, officer, or employee. It also states that the policy does not alter existing agency powers or override state or federal laws, regulations, or court orders.
The governor cited recent reports and a federal criminal case involving alleged use of government information to place wagers on military operations.
The U.S. Department of Justice announced in April that Army soldier Gannon Ken Van Dyke had been indicted for allegedly using classified information concerning a planned military operation in Venezuela to make wagers on Polymarket.
Federal prosecutors alleged that Van Dyke participated in planning “Operation Absolute Resolve,” a U.S. operation to capture Venezuelan leader Nicolás Maduro, and placed approximately $33,034 in wagers while possessing nonpublic information about the mission.
Van Dyke allegedly profited approximately $409,881 after contracts concerning Maduro’s removal and the presence of U.S. forces in Venezuela resolved in Van Dyke’s favor. Prosecutors charged Van Dyke with violations of the Commodity Exchange Act, wire fraud, and conducting an unlawful monetary transaction. The charges remain allegations, and no conviction was reported in the Justice Department’s announcement.
In March, Arizona Attorney General Kris Mayes filed 20 criminal charges against KalshiEx LLC and Kalshi Trading LLC, the companies behind the Kalshi prediction-market platform. Mayes alleged that the companies operated an unlicensed gambling business and unlawfully accepted wagers on elections.
In May, U.S. District Judge Michael Liburdi granted the Commodity Futures Trading Commission a preliminary injunction barring Arizona from enforcing its gambling laws through criminal or civil actions involving event contracts listed on CFTC-regulated designated contract markets. Liburdi found that the federal government was likely to succeed on its claim that the Commodity Exchange Act preempts Arizona’s gambling laws in that context.
Hobbs’ order took effect immediately upon signing and will remain in force until it is repealed, replaced, or rescinded by a future executive order.
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 | Jul 15, 2026 | News
By Staff Reporter |
New expert analysis warns that the Arizona government’s plan to reduce the Salt River wild horse population to 120 horses could prove devastating to their continued existence.
The herd currently has approximately 274 horses, nearly half of what the herd was at its peak in recent decades.
Dr. E. Gus Cothran, equine population geneticist and professor emeritus at Texas A&M University, issued a statement expressing concern that the plan may prove detrimental to the future existence of the wild horses. Cothran says wild horse populations require 150 to 200 horses minimum for long-term genetic health, though no number can provide an exact guarantee on a herd’s survival.
“At the most basic level, 150 to 200 animals is a minimum number,” said Cothran. “This is the number that, if everything goes right and only population genetics is involved, should maintain genetic health for 200 years or so.”
Cothran said genetic testing of just 20–25% of the herd would allow for insight into the herd’s genetic health: approximately 55 to 70 horses.
Citing that assessment, advocates and community members have raised concerns that the state’s current plan of removal for the horses would have the potential for permanent and devastating impact to the wild horse population.
The Friends of the Salt River Wild Horses have asked Gov. Katie Hobbs to pause the permanent removals pending an independent genetic study and scientific review.
“Once that diversity is lost, it is gone forever!” said Friends of the Salt River Wild Horses in a statement. “Before a single horse is permanently removed, Arizona should demonstrate through independent science that the remaining herd will be genetically healthy and capable of surviving for generations. Friends of the Salt River Wild Horses calls upon Governor Hobbs to halt removals, to do the science, and respect the public process.”
Some contend the Arizona Department of Agriculture’s (AZDA) plan to remove these horses violates the Salt River Wild Horse Protection Act passed in 2016. The act empowers the state to exercise discretionary management of the horse population, with protections against the obstruction, chase, capture, removal, or euthanasia of the horses without government permission.
AZDA awarded the management contract to the Salt River Wild Horse Management Group (SRWHMG). The company is operating on a goal to reduce the herd size over the next five years through natural attrition, fertility control, and manual relocation, per a press release issued by AZDA in February.
SRWHMG has already been involved in population reduction efforts. They reduced the population from 450 horses using fertility control methods.
AZDA promised that all removed wild horses were only permitted for the relocation to approved sanctuaries — no horses may be donated, traded, slaughtered, or sold.
According to AZDA, the contract procurement process included input from an assessment panel consisting of veterinarians, a rangeland management scientist, and a federal wild horse manager.
AZDA Director Paul Brierley said the management plan represented the responsible promotion and protection of the “Salt River experience.”
SRWHMG President Simone Netherlands called the plan “a pragmatic compromise.”
Last month, the Arizona legislature failed to pass a proposed three-year moratorium on the herd reduction and mandatory study on the Salt River horses’ genetic diversity. The House passed the bill, SB 1199, but the Senate declined to pass it on concurrence.
Republican Reps. Juan Ciscomani (AZ-06) and David Schweikert (AZ-01) were among the founding members of the bipartisan Congressional Wild Horse Caucus last year.
These and other members of Congress have been pushing for the passage of the Wild Horse and Burro Protection Act, HR 4356, which would eliminate helicopter roundups.
EDITOR’S NOTE: Corrections adjust the name of “The Friends of the Salt River Horses” to “The Friends of the Salt River Wild Horses” and clarify that the Arizona Senate did not pass SB 1199 on concurrence.
AZ Free News is your #1 source for Arizona news and politics. You can send us news tips using this link.
by Ethan Faverino | Jul 14, 2026 | Economy, News
By Ethan Faverino |
Arizona taxpayers could face nearly $200 million in additional costs if the state fails to reduce its Supplemental Nutrition Assistance Program (SNAP) payment error rate in the coming years.
Data from the U.S. Department of Agriculture shows Arizona’s SNAP payment error rate reached 10.8% in Fiscal Year 2025, ranking 33rd nationally and rising from 8.84% in Fiscal Year 2024.
Under changes enacted through the One Big Beautiful Bill Act (H.R. 1), states with SNAP payment error rates below 6% by Fiscal Year 2028 will avoid cost-sharing requirements with the federal government.
States with error rates between 6-8% must provide a 5% match, those between 8-10% a 10% match, and states exceeding 10% a 15% match.
If Arizona’s error rate remains at 10.8% in Fiscal Year 2028, the state would be subject to the highest matching requirement.
Based on Fiscal Year 2025 figures, eight states recorded error rates below 6% (Idaho, Nebraska, Nevada, South Dakota, Utah, Vermont, Wisconsin, and Wyoming), while six fell between 6-8%. Another 16 states posted rates between 8-10%, and 20 states exceeded 10%.
Zach Milne, senior economist at Common Sense Institute Arizona said the state has a strong incentive to improve its performance.
Mile told The Center Square, “Improving program accuracy strengthens program integrity and helps the state avoid potentially significant federal cost-sharing penalties.”
He described Arizona’s elevated error rate as a relatively recent development, noting that the state’s rate stood at 5.2% in Fiscal Year 2019 — below the new federal threshold.
The Arizona Legislature passed several measures during the 2026 session aimed at lowering the state’s SNAP payment error rate, but they were vetoed by Governor Hobbs.
Senate Bill 1002 would have expanded eligibility verification tools for the Arizona Department of Economic Security, while Senate Bill 1331 proposed work requirements for SNAP recipients age 60 and younger.
Senate Bill 1334 would have barred the department from seeking work-requirement waivers for able-bodied adults without dependents. House Bill 2206 sought to require the state to reduce its SNAP payment error rate to below 3% by 2030.
In her veto messages, Hobbs argued that the legislation duplicated ongoing efforts by the Department of Economic Security to improve accuracy, including enhanced eligibility verification, additional staffing and training, and investments in technology.
“SNAP is the most robust and effective anti-hunger tool we have in Arizona-I know this firsthand,” Hobbs said in her veto letter of the three Senate Bills. “It’s also the most secure, thanks to strong anti-fraud measures and oversight. Instead of creating more needless frustration for Arizona families, I invite you to join me in actually lowering costs for them.”
She also criticized H.R. 1 for imposing unfunded mandates that she said have strained agency resources, noting that she allocated $7.5 million to increase the department’s capacity. Hobbs maintained that the vetoed bills would have added further unfunded requirements without providing resources for implementation or modernization.
Ethan Faverino is a reporter for AZ Free News. You can send him news tips using this link.
by Staff Reporter | Jun 29, 2026 | News
By Staff Reporter |
Gov. Katie Hobbs rejected legislation that would have imposed an accountability-based intervention system for expectant mothers who abuse substances.
Arizona does not currently punish expectant mothers for drinking alcohol or using drugs.
Lawmakers who passed the bill, SB 1476, said it would have protected children from the harmful consequences of mothers who drink alcohol or use drugs while pregnant.
The bill would have classified those adverse behaviors as child neglect, a class six felony. Expectant mothers would then have several options before them: face legal consequences, or undergo alcohol or drug treatment.
Class six felonies may be modified as class one misdemeanors. This felony level is considered the least severe; punishments can range from probation or prison time from four months to nearly six years, depending on the total number of past felonies and the severity of the offense.
Hobbs dismissed the approach of the bill in her veto letter, arguing that punishments wouldn’t deter mothers from abusing substances while pregnant.
“Further criminalization will not yield safer pregnancies and births in Arizona,” said Hobbs. “I instead invite you to join me in efforts to expand access to substance use treatment.”
Sen. Shawnna Bolick (R-LD2), sponsor to SB 1476, said in a press release announcing the bill’s passage earlier this month that the legislation would enable the justice system to intervene on the child’s behalf and get the mother into drug or alcohol recovery programs.
“Every child deserves a safe and healthy start in life,” said Bolick. “When substance abuse harms a child before they’re even born, the law should recognize that reality while also encouraging mothers to seek treatment and recovery. This bill strikes an appropriate balance between accountability and compassion, with both the mother’s and child’s well-being remaining the top priority.”
The latest data cited by the Centers for Disease Control (CDC) reported that, on average, about six out of every 1,000 newborns in the hospital are diagnosed with neonatal abstinence syndrome (NAS), the clinical term for babies born with drug dependence. Per the CDC, NAS increased by over 80% from 2010 to 2017.
Arizona has one of the highest NAS rates in the nation. Out of every 1,000 hospitalizations of newborns, nine are diagnosed with NAS. NAS diagnoses have steadily increased in the state since 2009.
The latest reporting from the Arizona Health Care Cost Containment System (AHCCCS) stated that 97% of babies diagnosed with NAS, Substance Exposed Newborns (SEN), or Neonatal Opioid Withdrawal Syndrome (NOWS) received treatment services within 30 days of birth in the 2025 fiscal year.
During her first year in office, Hobbs vetoed legislation that would have required infants born alive during an abortion to receive medical interventions to preserve their life and health.
The governor said the bill impermissibly interfered with the relationship between the woman and her doctor, and a breach of her campaign promise to kill any bill perceived as interfering with abortion rights.
“It’s simply not the state’s role to make such difficult medical decisions for patients,” said Hobbs.
AZ Free News is your #1 source for Arizona news and politics. You can send us news tips using this link.
by Staff Reporter | Jun 27, 2026 | News
By Staff Reporter |
Gov. Katie Hobbs once again vetoed key election bills, blocking a Republican-backed reform package.
The governor rejected six Senate bills restricting election equipment internet connection, expanding chain-of-custody requirements, publicizing cast vote records and voter registration rolls, increasing anti-counterfeiting measures for election ballot vendors, clarifying voter registration standards for those residing temporarily out of state, and requiring disclosures for out-of-state circulators.
Similar proposals were included in bills passed by the legislature and vetoed by Hobbs last year.
The following were the veto explanations Hobbs gave for the election reform package:
- SB 1037: Hobbs said further specifications regarding election equipment belonged in the Elections Procedures Manual, citing her 2025 veto of SB 1064
- SB 1038: Hobbs claimed jeopardization of constitutional protections for voter privacy, citing her 2025 veto of SB 1280
- SB 1040: Hobbs claimed that voter registration information could be redistributed or posted online, citing her 2025 veto of SB 1375
- SB 1057: Hobbs claimed election officials would endure added expenses and complexities, citing her 2025 veto of SB 1123
- SB 1060: Hobbs claimed the bill would prevent U.S. citizens from registering to vote, citing her 2025 veto of SB 1052.
- SB 1429: Hobbs claimed U.S. citizens would be prevented from registering to vote, namely those born overseas to service members, citing her 2025 veto of SB 1052
Arizona Senate Republicans rejected Hobbs’ arguments as unconvincing, and accused the governor of “a troubling pattern” in which she has been intentionally “keeping Arizona voters in the dark.”
A press release from the caucus issued Tuesday made the case that voters should have more opportunities to verify the integrity of their elections — not be forced into their current position where Republicans say their only option is, allegedly, to trust the outcome.
State Sen. Mark Finchem (R-LD1) insisted that these election reforms were necessary to combat voter insecurities over election results.
“When questions about election results come up, and they always do, election officials and poll workers need real tools to show their work and defend the outcome,” said Finchem. “These vetoes strip away the very things that would help good people running elections prove the system is working. Public cast vote records, stronger ballot security, and clearer chain-of-custody rules aren’t about attacking anyone. They’re about giving the people who administer elections the ability to back up their results with evidence instead of just statements. Blocking these reforms year after year doesn’t build trust, it makes the job of defending Arizona’s elections harder.”
State Sen. Wendy Rogers (R-LD7), chair of the Senate Judiciary and Elections Committee, argued that Hobbs had also prevented additional means for voters to have hands-on oversight of their elections.
“She blocked public cast vote records, stronger anti-fraud features on ballots, tighter security on voting equipment, and more transparency on voter rolls and ballot measures. If everything is already so secure and trustworthy, why is she fighting so hard to keep voters from seeing more of it?” said Rogers. “These bills weren’t radical, they were basic safeguards. The governor keeps telling people to just trust the system while she works to keep it in the dark.”
AZ Free News is your #1 source for Arizona news and politics. You can send us news tips using this link.
