Arizona Attorney General (AG) Kris Mayes declined to prosecute the alleged pay-to-play scheme involving Governor Katie Hobbs (D-AZ) and Sunshine Residential Homes, sparking strong responses from Republicans in the State Legislature.
The Context
The allegation first surfaced in June 2024 after the Arizona Republic reported on how the Arizona Department of Child Safety (DCS) approved 60% more for what Sunshine Residential Homes, a foster care facility, charges to care for each child in its program per day, which increased since Gov. Hobbs took office amidst pay cuts to other facilities.
The suspicion arises because Sunshine Residential Homes' CEO is Simon Kottoor, who served on Hobbs' inaugural committee and personally donated to the Governor's campaign. Sunshine Residential Homes also donated to the campaign.
In November 2025, Arizona Speaker of the House Steve Montenegro (R-29) convened an advisory team to investigate the claims, and in April of this year, Arizona Republican Party Chairman Sergio Arellano (R-AZ) demanded Gov. Hobbs cooperate with the investigation.
Mayes' Dismissal
On Friday, AG Mayes issued a statement, saying, "After two years of investigation, consisting of multiple interviews, reviews of campaign-finance records, procurement records, bank documents, and State emails and chats, totaling over one terabyte of data, including more than 100,000 documents, the investigation has not uncovered any evidence of the necessary quid pro quo to support a bribery charge."
"Declining prosecution is a conclusion about the legal standard for charging a case, but this case shows there is a need for legislative reform," AG Mayes continued, adding, "The Legislature and the Governor have the power to ensure greater transparency with regard to political donations made by state contractors. I am urging them to work together and try again to pass legislation that does so."
Republicans' Response
State Senate President Warren Petersen (R-14), who is running to replace AG Mayes, questioned on X, "What good is an Attorney General who does not hold interviews and prosecute?"
Similarly, State Senator Jake Hoffman (R-15) wrote, "The Kris Mayes - Katie Hobbs corruption and coverup scandal is significant. Katie Hobbs illegally funneled TENS, possibly HUNDREDS OF MILLIONS of taxpayer dollars to a company who donated BIG to her & fellow Democrats Kris Mayes refused to conduct a real investigation and is now covering up the corruption. Mayes and Hobbs are outright criminals."
