Arizona Attorney General Declines Charges In Hobbs Pay-To-Play Probe
Arizona Attorney General Kris Mayes announced in Phoenix on Friday, August 21, 2026, that she declined to bring criminal charges against Gov. Katie Hobbs in a pay-to-play probe.[1]
Sunshine Residential Homes gave $200,000 to the Arizona Democratic Party before the November 2022 election and $100,000 to Hobbs' inaugural fund weeks before she took office.[1] Sunshine donated another $100,000 to the party in August 2023, and founder Simon Kottoor and his wife each contributed $10,000 to Hobbs' gubernatorial campaign.[1]
Sunshine's first request for a rate increase was denied shortly after Hobbs took office in early 2023, and a second request was approved in May 2023, raising the per-bed rate from $149 to $195.[1] In a 2024 contracting round Sunshine's per-bed rate rose again to $234, and other preexisting providers also received rate increases.[1]
The Arizona Department of Child Safety said Sunshine operates about 28 homes with roughly 290 beds and supplies 70 percent of sibling beds in metro Phoenix foster care.[1] DCS said losing those beds would likely force siblings to be split between homes.[1] DCS told investigators that then-director David Lujan approved the 2023 increase and said the governor and her staff weren't involved, while Maricopa County Attorney Rachel Mitchell's probe and a state auditor general audit remain open.[1]
The December 2022 death of 9-year-old foster child Jakob Blodgett is a separate controversy and a negligence lawsuit is pending.[1] Testimony in the case said two Sunshine staff lacked training to manage Type 1 diabetes, and the Maricopa County Sheriff's Office investigation remains open with no charges filed.[1]
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📌 Key Facts
- Arizona Attorney General Kris Mayes publicly announced in Phoenix on Friday, August 21, 2026, that she declined to bring charges against Gov. Katie Hobbs in the pay-to-play probe.
- Sunshine Residential Homes gave $200,000 to the Arizona Democratic Party before the November 2022 election, $100,000 to Hobbs' inaugural fund weeks before she took office in 2023, another $100,000 to the party in August 2023, and founder Simon Kottoor and his wife each contributed $10,000 to Hobbs' gubernatorial campaign.
- Sunshine’s first request for a rate increase was denied shortly after Hobbs took office in early 2023, a second request was approved in May 2023 raising the per-bed rate from $149 to $195, and in the 2024 contracting round Sunshine’s rate rose again to $234 per bed, along with other preexisting providers.
- The Arizona Department of Child Safety said Sunshine operates about 28 homes with roughly 290 beds, supplies 70% of sibling beds in metro Phoenix foster care, and that losing those beds would likely force siblings to be split between homes.
- DCS told investigators that then-director David Lujan approved the 2023 rate increase and that 'the governor and her staff weren't involved' in that decision.
- The December 2022 death of 9-year-old foster child Jakob Blodgett remains a separate controversy: a negligence lawsuit is pending, testimony said two Sunshine staff lacked training to manage Type 1 diabetes, and the Maricopa County Sheriff's Office investigation is open with no charges filed.
- Separate investigations by Maricopa County Attorney Rachel Mitchell and by the state auditor general are still ongoing, and their timelines and scope relative to the attorney general's declination remain unclear.
📰 Source Timeline (2)
Follow how coverage of this story developed over time
- Article confirms Arizona Attorney General Kris Mayes' declination decision was publicly announced in Phoenix on Friday, August 21, 2026.
- It details Sunshine Residential Homes' full donation pattern: $200,000 to the Arizona Democratic Party before the November 2022 election, $100,000 to Hobbs' inaugural fund weeks before she took office in 2023, and another $100,000 to the party in August 2023, plus $10,000 in gubernatorial campaign contributions each from founder Simon Kottoor and his wife.
- The piece specifies that Sunshine’s first request for a rate increase was denied shortly after Hobbs took office in early 2023, and a second request was approved in May 2023, raising the rate from $149 to $195 per bed.
- It provides operational context from the Arizona Department of Child Safety, noting that Sunshine operates about 28 homes with roughly 290 beds, supplies 70% of sibling beds in metro Phoenix foster care, and that losing those beds would likely force siblings to be split between homes.
- The article quotes DCS as saying then-director David Lujan approved the 2023 rate increase and that 'the governor and her staff weren't involved' in that decision.
- It notes that all preexisting providers, including Sunshine, later received rate hikes in a new 2024 contracting round, with Sunshine's rate rising again to $234 per bed.
- The story adds detail on a separate Sunshine controversy: the December 2022 death of 9-year-old foster child Jakob Blodgett, including a pending negligence lawsuit, testimony that two Sunshine staff lacked training to manage Type 1 diabetes, and confirmation that the Maricopa County Sheriff's Office investigation remains open with no charges filed.
- It reiterates that separate investigations by Maricopa County Attorney Rachel Mitchell and the state auditor general are still ongoing and that their timelines and scope relative to the AG probe remain unclear.