Hobbs Under Fire After New "Pay-to-Play" Evidence Emerges Inside DCS; President Pro Tem Shope Demands Accountability

FOR IMMEDIATE RELEASE                                                                         

Thursday, November 13, 2025

Hobbs Under Fire After New "Pay-to-Play" Evidence Emerges Inside DCS;

President Pro Tem Shope Demands Accountability

PHOENIX, ARIZONA— President Pro Tem T.J. Shope is calling for immediate updates from state and county prosecutors after newly surfaced internal messages, financial documents, and firsthand accounts indicate political pressure inside the Department of Child Safety (DCS). The matter surrounds a controversial 30% rate hike given to the group home provider Sunshine Residential Homes – a major donor to Governor Katie Hobbs and Democratic political organizations.

The documents reveal DCS staff themselves raised an alarm about Sunshine Residential's political influence. Internal agency messages referenced the provider's close relationship with Hobbs. Employees also described the situation as placing state leadership in an "uncomfortable position" because of the company's political spending.

"These revelations are deeply disturbing," said President Pro Tem Shope. "When senior agency officials feel pressured because a provider has given hundreds of thousands of dollars to the Governor, and that provider then threatens to pull critical beds unless it gets a massive rate increase, the integrity of government decision-making is called into question. This demands immediate answers."  

Concerns raised include:

• Sunshine Residential demanded a sharp rate increase or it would shift its services to the federal system.

• DCS leadership approved the increase despite warnings it would worsen an already projected $13 million shortfall.

• Sunshine Residential claimed a large deficit to justify the hike, yet its financials show $440,000 in operating income.

• Independent accounting experts noted the claimed deficit appeared inconsistent with actual financial performance.

President Pro Tem Shope's letter – sent today to Attorney General Kris Mayes and Maricopa County Attorney Rachel Mitchell – requests confirmation that investigations into potential "pay-to-play" conduct remain active and asks for an update on their status.

"This is not a partisan issue – it's a public trust issue," said President Pro Tem Shope. "If political donations influenced decisions inside DCS, especially decisions involving vulnerable children, that is unacceptable. We intend to get to the bottom of this. Arizonans must be confident that their state government is not for sale."

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For more information, contact:

Kim Quintero

Director of Communications | Arizona State Senate Republican Caucus

kquintero@azleg.gov