Politics
Arizona Gov. Katie Hobbs under investigation for alleged 'pay-to-play' scheme
Arizona Gov. Katie Hobbs is being investigated for an alleged “pay-for-play” scheme after a report revealed a group home business that looks after vulnerable children was approved for a rate hike after it donated to her inauguration and the Arizona Democratic Party.
Arizona Attorney General Kris Mayes, a Democrat, said her office has launched a probe into the matter after receiving a request from state Sen. T.J. Shope, a Republican who is also the Arizona Senate president pro tempore.
The request came after a report in The Arizona Republic showed Sunshine Residential Homes, the operator of group homes for foster kids, was approved for a nearly 60% increase in taxpayer funds via the Arizona Department of Child Safety (DCS) after previously being denied an increase.
ARIZONA GOVERNOR VETOES ‘ALIEN INVASION ACT’ THAT WOULD ALLOW POLICE TO ARREST ILLEGAL BORDER CROSSERS
Arizona Gov. Katie Hobbs is being investigated for an alleged “pay-for-play” scheme after a report revealed a group home business was approved for a rate hike after it donated to her inauguration and the Arizona Democratic Party. (Mario Tama/Getty Images)
The approval came after the private company donated around $400,000 to Hobbs, including to her campaign and inauguration, as well as to the state Democratic Party, according to the report.
The publication reported that, since July 2022, group home providers have asked the department at least a dozen times to increase the rate for a standard bed.
One provider, Ohana Homes, received an increase to $155 a day in September 2022, before Hobbs took office, and then Ohana’s contract was not renewed this year.
Sunshine Residential Homes sought a 20% rate increase in December 2022, to $179 per day, but DCS refused on Feb. 6, 2023, according to records provided by the department cited by The Arizona Republic.
Then, on Feb. 9, 2023, a $100,000 check from Sunshine was credited to Hobbs’ inaugural campaign. And in May 2023, it secured a rate increase, netting Sunshine Residential $234 per day for standard group home services. It is far higher than the average $169 for other group homes. However, a spokesperson for Hobbs told the publication the payment was made Dec. 15, 2022.
The increase means Sunshine is receiving the most out of dozens of home providers operating in the state, The Arizona Republic reported, citing DCS and state contract records it reviewed.
The publication also reported that no other group home provider has been approved for a rate increase during Hobbs’ tenure. Sunshine requested the increase due to financial hardships amid the COVID-19 pandemic and inflation, according to The Arizona Republic.
A Sunshine Residential Homes site in Arizona. (Google Maps)
ARIZONA GOVERNOR RIPS GOP HYPOCRISY AFTER STATE SUPREME COURT UPHOLDS ABORTION BAN
Shope, meanwhile, also sent the letter to Maricopa County Attorney Rachel Mitchell. He says it’s now it’s up to investigators to determine what happened.
“We were talking about millions of dollars, and to know that not many, if any at all, have seen rate increases that large, it was definitely troubling,” Shope said, according to Fox 10 Phoenix.
The firm’s CEO was on the Hobbs’ inauguration committee.
“I have to believe that they, at the very least, see the allegations the same way that I do, which is troubling at best and possibly worse,” Shope said.
Nick Klingerman, chief counsel of the criminal division in Mayes’ office, said they are obligated to investigate the matter after being notified.
“The Criminal Division of the Attorney General’s Office is statutorily authorized to investigate the allegations and offenses outlined in your letter. To that end, the Attorney General’s Office will be opening an investigation,” he wrote.
Arizona Gov. Katie Hobbs gives a brief speech prior to President Biden’s remarks at the Tempe Center for the Arts Sept. 28, 2023, in Tempe, Ariz. (Rebecca Noble/Getty Images)
A spokesperson for Hobbs’ office denied the accusations in a statement and said the governor’s office played no role in the DCS decision on Sunshine’s pay.
“Just like past investigations instigated by radical and partisan legislators, the administration will be cleared of wrongdoing,” the statement said. “Governor Hobbs is a social worker who has been a champion for Arizona families and kids. It is outrageous to suggest her administration would not do what’s right for children in foster care.”
The move to approve a rate increase to Sunshine Residential Homes came at a time when the state is looking to reduce the use of group homes and move vulnerable children into family settings. For instance, the DCS has denied pay increases to home operators and cut ties of 16 providers during the contract renewal process, The Arizona Republic reported.
Politics
Wyoming Supreme Court rules laws restricting abortion violate state constitution
NEWYou can now listen to Fox News articles!
The Wyoming Supreme Court ruled on Tuesday that a pair of laws restricting abortion access violate the state constitution, including the country’s first explicit ban on abortion pills.
The court, in a 4-1 ruling, sided with the state’s only abortion clinic and others who had sued over the abortion bans passed since the U.S. Supreme Court overturned Roe v. Wade in 2022, which returned the power to make laws on abortion back to the states.
Despite Wyoming being one of the most conservative states, the ruling handed down by justices who were all appointed by Republican governors upheld every previous lower court ruling that the abortion bans violated the state constitution.
Wellspring Health Access in Casper, the abortion access advocacy group Chelsea’s Fund and four women, including two obstetricians, argued that the laws violated a state constitutional amendment affirming that competent adults have the right to make their own health care decisions.
TRUMP URGES GOP TO BE ‘FLEXIBLE’ ON HYDE AMENDMENT, IGNITING BACKLASH FROM PRO-LIFE ALLIES
The Wyoming Supreme Court ruled that a pair of laws restricting abortion access violate the state constitution. (Tom Williams/CQ-Roll Call, Inc via Getty Images)
Voters approved the constitutional amendment in 2012 in response to the federal Affordable Care Act, which is also known as Obamacare.
The justices in Wyoming found that the amendment was not written to apply to abortion but noted that it is not their job to “add words” to the state constitution.
“But lawmakers could ask Wyoming voters to consider a constitutional amendment that would more clearly address this issue,” the justices wrote.
Wellspring Health Access President Julie Burkhart said in a statement that the ruling upholds abortion as “essential health care” that should not be met with government interference.
“Our clinic will remain open and ready to provide compassionate reproductive health care, including abortions, and our patients in Wyoming will be able to obtain this care without having to travel out of state,” Burkhart said.
Wellspring Health Access opened as the only clinic in the state to offer surgical abortions in 2023, a year after a firebombing stopped construction and delayed its opening. A woman is serving a five-year prison sentence after she admitted to breaking in and lighting gasoline that she poured over the clinic floors.
Wellspring Health Access opened as the only clinic in the state to offer surgical abortions in 2023, a year after a firebombing stopped construction. (AP)
Attorneys representing the state had argued that abortion cannot violate the Wyoming constitution because it is not a form of health care.
Republican Gov. Mark Gordon expressed disappointment in the ruling and called on state lawmakers meeting later this winter to pass a constitutional amendment prohibiting abortion that residents could vote on this fall.
An amendment like that would require a two-thirds vote to be introduced as a nonbudget matter in the monthlong legislative session that will primarily address the state budget, although it would have significant support in the Republican-dominated legislature.
“This ruling may settle, for now, a legal question, but it does not settle the moral one, nor does it reflect where many Wyoming citizens stand, including myself. It is time for this issue to go before the people for a vote,” Gordon said in a statement.
APPEALS COURT SIDES WITH TRUMP ON BUDGET PROVISION CUTTING PLANNED PARENTHOOD FUNDS
Gov. Mark Gordon expressed disappointment in the ruling. (Getty Images)
One of the laws overturned by the state’s high court attempted to ban abortion, but with exceptions in cases where it is needed to protect a pregnant woman’s life or in cases of rape or incest. The other law would have made Wyoming the only state to explicitly ban abortion pills, although other states have implemented de facto bans on abortion medication by broadly restricting abortion.
CLICK HERE TO DOWNLOAD THE FOX NEWS APP
Abortion has remained legal in the state since Teton County District Judge Melissa Owens blocked the bans while the lawsuit challenging the restrictions moved forward. Owens struck down the laws as unconstitutional in 2024.
Last year, Wyoming passed additional laws requiring abortion clinics to be licensed surgical centers and women to receive ultrasounds before having medication abortions. A judge in a separate lawsuit blocked those laws from taking effect while that case moves forward.
The Associated Press contributed to this report.
Politics
What Trump’s vow to withhold federal child-care funding means in California
SACRAMENTO — Gov. Gavin Newsom and other state Democratic leaders accused President Trump of unleashing a political vendetta after he announced plans to freeze roughly $10 billion in federal funding for child care and social services programs in California and four other Democrat-controlled states.
Trump justified the action in comments posted on his social media platform Truth Social, where he accused Newsom of widespread fraud. The governor’s office dismissed the accusation as “deranged.”
Trump’s announcement came amid a broader administration push to target Democratic-led states over alleged fraud in taxpayer-funded programs, following sweeping prosecutions in Minnesota. The U.S. Department of Health and Human Services confirmed the planned funding freeze, which was first reported by the New York Post.
California officials said they have received no formal notice and argued the president is using unsubstantiated claims to justify a move that could jeopardize child care and social services for low-income families.
How we got here
Trump posted on his social media site Truth Social on Tuesday that under Newsom, California is “more corrupt than Minnesota, if that’s possible???” In the post, Trump used a derogatory nickname for Newsom that has become popular with the governor’s critics, referring to him as “Newscum.”
“The Fraud Investigation of California has begun,” Trump wrote.
The president also retweeted a story by the New York Post that said his Department of Health and Human Services will freeze taxpayer funding from the Child Care Development Fund, the Temporary Assistance for Needy Families program, which is known as CalWORKS in California, and the Social Services Block Grant program. Health and Human Services said the affected states are California, Colorado, Illinois, Minnesota and New York.
“For too long, Democrat-led states and Governors have been complicit in allowing massive amounts of fraud to occur under their watch,” said Andrew Nixon, a department spokesperson. “Under the Trump Administration, we are ensuring that federal taxpayer dollars are being used for legitimate purposes. We will ensure these states are following the law and protecting hard-earned taxpayer money.”
The department announced last month that all 50 states will have to provide additional levels of verification and administrative data before they receive more funding from the Child Care and Development Fund after a series of fraud schemes at Minnesota day-care centers run by Somali residents.
“The Trump Administration is using the moral guise of eliminating ‘fraud and abuse’ to undermine essential programs and punish families and children who depend on these services to survive, many of whom have no other options if this funding disappears,” Kristin McGuire, president of Young Invincibles, a young-adult nonprofit economic advocacy group, said in a statement. “This is yet another ideologically motivated attack on states that treats millions of families as pawns in a political game.”
California pushes back
Newsom’s office brushed off Trump’s post about fraud allegations, calling the president “a deranged, habitual liar whose relationship with reality ended years ago.” Newsom himself said he welcomes federal fraud investigations in the state, adding in an interview on MS NOW that aired Monday night: “Bring it on. … If he has some unique insight and information, I look forward to partnering with him. I can’t stand fraud.”
However, Newsom said cutting off funding hurts hardworking families who rely on the assistance.
“You want to support families? You believe in families? Then you believe in supporting child care and child-care workers in the workforce,” Newsom told MS NOW.
California has not been notified of any changes to federal child-care or social services funding. H.D. Palmer, a spokesperson for the Department of Finance, said the only indication from Washington that California’s child-care funding could be in jeopardy was the vague 5 a.m. post Tuesday by the president on Truth Social.
“The president tosses these social media missives in the same way Mardi Gras revelers throw beads on Bourbon Street — with zero regard for accuracy or precision,” Palmer said.
In the current state budget, Palmer said, California’s child-care spending is $7.3 billion, of which $2.2 billion is federal dollars. Newsom is set to unveil his budget proposal Friday for the fiscal year that begins July 1, which will mark the governor’s final spending plan before he terms out. Newsom has acknowledged that he is considering a 2028 bid for president, but has repeatedly brushed aside reporters’ questions about it, saying his focus remains on governing California.
Palmer said while details about the potential threat to federal child-care dollars remain unclear, what is known is that federal dollars are not like “a spigot that will be turned off by the end of the week.”
“There is no immediate cutoff that will happen,” Palmer said.
Since Trump took office, California has filed dozens of legal actions to block the president’s policy changes and funding cuts, and the state has prevailed in many of them.
What happened in Minnesota
Federal prosecutors say Minnesota has been hit by some of the largest fraud schemes involving state-run, federally funded programs in the country. Federal prosecutors estimate that as much as half of roughly $18 billion paid to 14 Minnesota programs since 2018 may be fraudulent, with providers accused of billing for services never delivered and diverting money for personal use.
The scale of the fraud has drawn national attention and fueled the Trump administration’s decision to freeze child-care funds while demanding additional safeguards before doling out money, moves that critics say risk harming families who rely on the programs. Gov. Tim Walz has ordered a third-party audit and appointed a director of program integrity. Amid the fallout, Walz announced he will not seek a third term.
Outrage over the fraud reached a fever pitch in the White House after a video posted online by an influencer purported to expose extensive fraud at Somali-run child-care centers in Minnesota. On Monday, that influencer, Nick Shirley, posted on the social media site X, “I ENDED TIM WALZ,” a claim that prompted calls from conservative activists to shift scrutiny to Newsom and California next.
Right-wing podcaster Benny Johnson posted on X that his team will be traveling to California next week to show “how criminal California fraud is robbing our nation blind.”
California officials have acknowledged fraud failures in the past, most notably at the Employment Development Department during the COVID-19 pandemic, when weakened safeguards led to billions of dollars in unemployment payments later deemed potentially fraudulent.
An independent state audit released last month found administrative vulnerabilities in some of California’s social services programs but stopped short of alleging widespread fraud or corruption. The California state auditor added the Department of Social Services to its high-risk list because of persistent errors in calculating CalFresh benefits, which provides food assistance to those in need — a measure of payment accuracy rather than criminal activity — warning that federal law changes could eventually force the state to absorb billions of dollars in additional costs if those errors are not reduced.
What’s at stake in California
The Trump administration’s plans to freeze federal child-care, welfare and social services funding would affect $7.3 billion in Temporary Assistance for Needy Families funding, $2.4 billion for child-care subsidies and more than $800 million for social services programs in the five states.
The move was quickly criticized as politically motivated because the targeted states were all Democrat-led.
“Trump is now illegally freezing childcare and other funding for working families, but only in blue states,” state Sen. Scott Wiener (D-San Francisco) said in a statement. “He says it’s because of ‘fraud,’ but it has nothing to do with fraud and everything to do with politics. Florida had the largest Medicaid fraud in U.S. history yet isn’t on this list.”
Added California Assembly Speaker Robert Rivas (D-Hollister): “It is unconscionable for Trump and Republicans to rip away billions of dollars that support child care and families in need, and this has nothing to do with fraud. California taxpayers pay for these programs — period — and Trump has no right to steal from our hard-working residents. We will continue to fight back.”
Times staff writer Daniel Miller contributed to this report.
Politics
Video: Walz Drops Re-Election Bid as Minnesota Fraud Scandal Grows
new video loaded: Walz Drops Re-Election Bid as Minnesota Fraud Scandal Grows
transcript
transcript
Walz Drops Re-Election Bid as Minnesota Fraud Scandal Grows
Governor Tim Walz of Minnesota abandoned his re-election bid to focus on handling a scandal over fraud in social service programs that grew under his administration.
-
“I’ve decided to step out of this race, and I’ll let others worry about the election while I focus on the work that’s in front of me for the next year.” “All right, so this is Quality Learing Center — meant to say Quality ‘Learning’ Center.” “Right now we have around 56 kids enrolled. If the children are not here, we mark absence.”
By Shawn Paik
January 6, 2026
-
World1 week agoHamas builds new terror regime in Gaza, recruiting teens amid problematic election
-
News1 week agoFor those who help the poor, 2025 goes down as a year of chaos
-
Business1 week agoInstacart ends AI pricing test that charged shoppers different prices for the same items
-
Health1 week agoDid holiday stress wreak havoc on your gut? Doctors say 6 simple tips can help
-
Technology1 week agoChatGPT’s GPT-5.2 is here, and it feels rushed
-
Business1 week agoA tale of two Ralphs — Lauren and the supermarket — shows the reality of a K-shaped economy
-
Science1 week agoWe Asked for Environmental Fixes in Your State. You Sent In Thousands.
-
Politics1 week agoThe biggest losers of 2025: Who fell flat as the year closed