by AZ Free Enterprise Club | Jan 16, 2026 | Opinion
By the Arizona Free Enterprise Club |
Over the past month, Minnesota has been hard at work to set the gold standard for jaw-dropping fraud scandals under the watch of Democrat Governor Tim Walz. The Somali daycare scandal has turned the state into a national punchline—hundreds of millions in taxpayer dollars stolen in plain sight while Kamala Harris’ favorite “masculine” governor looked the other way.
Now, with Walz stepping aside from this reelection bid, a new contender for “most scandal-plagued governor on the 2026 ballot” has emerged: Arizona Governor Katie Hobbs. While Minnesota’s scandals have dominated headlines, Hobbs has been busy compiling a rap sheet that rivals what happened in the Land of 10,000 Lakes. But unlike Walz, Hobbs and her administration are under active criminal investigation.
A Pay-to-Play Scheme Engulfs the Hobbs Administration
The list of Hobbs’ scandals is a mile long and begins at the start of her tenure as governor. At that time, Hobbs set up a shady slush fund to provide donors with a conduit to buy political favor from her administration. While setting up and managing the fund, Hobbs illegally used public resources—like the state’s website—to solicit money for her inauguration. And she also tried to stop the disclosure of the names of those who donated to her inaugural fund.
After immense political pressure, Hobbs finally released the names of the donors. One of the names of the groups on the list was Sunshine Residential Homes Inc., a for-profit company that contracts with the State of Arizona. Sunshine Residential donated $100,000 to the secret fund, which was suspicious enough. But after some additional digging by local reporters, an even deeper level of corruption was revealed—an alleged pay-to-play scheme between Hobbs and the group home.
According to the report, it turns out Sunshine Residential Homes doled out $400,000 to the Arizona Democratic Party, Hobbs’ gubernatorial campaign committee, and her aforementioned inaugural fund. Hobbs and her campaign finance manager even arranged a dinner with the government contractor to meet with the CEO in private.
After making the large donations, Sunshine was granted a 30 percent increase in their rates at a time when the Arizona Department of Child Safety cut loose 16 providers! On top of that, no other standard group home provider received a rate increase. This arrangement ensured that Sunshine Residential would receive millions in additional revenue at the taxpayers’ expense.
Hobbs’ is currently under three separate criminal investigations for this pay-to-play scheme, but it’s not the only financial scandal we’ve seen during her reign as governor…
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by AZ Free Enterprise Club | Mar 12, 2025 | Opinion
By the Arizona Free Enterprise Club |
If the Hobbs administration has proven itself to be uniquely skilled at anything over the past two years, it’s incompetence and negligence. But now, Arizona’s governor has taken the next step toward outright fraud.
As a part of her recent budget proposal, Hobbs has asked for a supplemental appropriation to the Arizona Department of Economic Security (DES) to cover a shortfall in the Division of Developmental Disabilities (DDD). Without the additional funding, the DDD could run out of money by May, affecting many people under a program that provides services to Arizonans with disabilities.
For weeks, Hobbs has been trying to push the blame onto the legislature, but the reality is, she has no one to blame but herself.
The problem stems from a COVID-era program funded entirely by the federal government that would pay parents who operate as caregivers for their children with disabilities—the Parents as Paid Caregivers program. The program was intended to be temporary, but Hobbs received approval from the federal government in February 2024 to make it permanent.
That approval came with a catch. Beginning on April 1, the State of Arizona would have to cover 32% of the costs, which Hobbs attempted to get funding for in last year’s budget. Her proposal was not approved by the legislature, which she mutually agreed to as part of the budget process. But she continued funding the program anyway—likely believing that she would be able to flip the legislature in November’s election or bully lawmakers into giving her the money. She failed on both counts and now has created a shortfall in the DDD program that has exceeded $100 million…
>>> CONTINUE READING >>>
by Matthew Holloway | Nov 23, 2024 | News
By Matthew Holloway |
Arizona Republicans raised serious allegations Thursday around Democrat Gov. Katie Hobbs’ approval of a $700,000 upgrade of the state logo by Urias Communications, owned by the brother of Office of Tourism Director Lisa Urias. On Friday morning, the Governor’s office announced that Urias would resign. Hobbs told reporters, ”This appearance of conflict is not acceptable.”
Arizona State senator Jake Hoffman laid out his allegations in a lengthy post to X in which he cited a report from Arizona Agenda. The Agenda reported that the Arizona Office of Tourism spent a sum of $700,000 originating from COVID-19 federal relief funds “on 57 in-person and digital listening sessions across the state, not to mention the $27,500 that went to the brother of the CEO of Urias’ marketing agency. He helped work on the logo with a separate graphic design company.”
Hoffman wrote, “’And of all the artists in the state who could have drafted that logo, the contract just happened to go to one who has close ties to the Office of Tourism Director Lisa Urias’—her brother.”
Hoffman added, “Katie Hobbs continues to exploit her office, break the law, and take advantage of the people of Arizona. This is what it looks like when Democrats are in control of your government.”
Senator John Kavanagh, when briefed by the outlet, reportedly called the matter “clearly an ethical violation. Whether or not it’s a legal violation is another issue.”
According to the report from Arizona Agenda, Urias’ mandate upon taking office included the hefty rebranding of Arizona to include “elements of Arizona’s Native American cultures in the design.” To that end the Office of Tourism engaged the services of Urias Communications, a company that is still owned by the director, although she “doesn’t have any role in its day-to-day operations,” as claimed by the tourism department’s communications director Josh Coddington.
The outlet noted that the Office of Tourism under Urias is leveraging a tax-funded budget of $8 million to woo tourists to come to Arizona, adding, “The appointment seems to have been an economic driver for Urias Communications as well.”
The Agenda concluded, “But even if she isn’t involved with the day-to-day operations of the company that she founded, Urias seems to be financially benefiting from the state’s contract with her company at the same time she is pulling a salary from the state.”
The report added that over a year after Urias became Director of Arizona’s Office of Tourism, her firm went on to win a $250,000 five-year contract from the Arizona Department of Education. This led Hoffman to remark that Superintendent of Public Instruction Tom Horne “is wrapped up in this scandal too.”
However, Horne refuted this in a response posted to X saying “Senator, we paid $15K on an expiring 1-year contract with Urias. ADE does not, nor will it, have a $250K contract with Urias. Get your facts straight.”
Hoffman replied, “Public reporting says otherwise. Send the receipts to back up what you’re saying to my Senate office. Would be glad to find out the public reporting is wrong. Need the receipts though.” Horne followed up that the documentation had been sent to Hoffman’s office, even posting an image of the documentation. He added, “Documents are at your office. Unlike the Governor we don’t know Urias personally. Next time ask first.”
In a letter to Arizona Attorney General Kris Mayes and Maricopa County Attorney Rachel Mitchell, Majority Whip Sen. Teresa Martinez called for an investigation into the allegations. Within twenty-four hours, Urias’ resignation was announced.
Urias responded to the allegations in a statement Friday saying, “In light of the Senate Confirmation members making it clear they will not confirm me as Tourism Director—despite the recent allegations being untrue and unfounded—I have tendered my resignation to the 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.
