Katie Hobbs now governs under a cloud she once wished on others. Sunshine Residential Homes’ roughly $400,000 in political donations, followed by a 30 percent rate hike other providers never saw, has become the centerpiece of a potential bribery and fraud probe. Attorney General Kris Mayes insists the criminal investigation is warranted; Hobbs calls it pure politics but concedes her staff has already faced questioning.
Republican lawmakers have launched their own advisory team, combing through internal messages that allegedly show concern over the company’s political ties and a desire to handle the rate hike quietly. Treasurer Kimberly Yee is pressing for outside investigators, warning of conflicts inside the attorney general’s office. The irony is brutal: a governor who demanded “accountability at the top level” for Trump now fights to prove she’s not the one who abused power, as Arizona heads toward a bitter 2026 reelect battle.