Lawmakers Need to Hold Hobbs’ Feet to the Fire Over Latest Financial Scandal

Lawmakers Need to Hold Hobbs’ Feet to the Fire Over Latest Financial Scandal

If the Hobbs administration has proven itself to be uniquely skilled at anything over the past two years, it’s incompetence and negligence. But now, Arizona’s governor has taken the next step toward outright fraud.

As a part of her recent budget proposal, Hobbs has asked for a supplemental appropriation to the Arizona Department of Economic Security (DES) to cover a shortfall in the Division of Developmental Disabilities (DDD). Without the additional funding, the DDD could run out of money by May, affecting many people under a program that provides services to Arizonans with disabilities.

For weeks, Hobbs has been trying to push the blame onto the legislature, but the reality is, she has no one to blame but herself.

The problem stems from a COVID-era program funded entirely by the federal government that would pay parents who operate as caregivers for their children with disabilities—the Parents as Paid Caregivers program. The program was intended to be temporary, but Hobbs received approval from the federal government in February 2024 to make it permanent.

That approval came with a catch. Beginning on April 1, the State of Arizona would have to cover 32% of the costs, which Hobbs attempted to get funding for in last year’s budget. Her proposal was not approved by the legislature, which she mutually agreed to as part of the budget process. But she continued funding the program anyway—likely believing that she would be able to flip the legislature in November’s election or bully lawmakers into giving her the money. She failed on both counts and now has created a shortfall in the DDD program that has exceeded $100 million!  

This wasn’t a mistake or some sort of accounting error. Hobbs knew the Parents as Paid Caregivers program was not authorized or funded by the legislature. Yet she stole millions from our state’s general fund to pay for this COVID-era program. There is no other way to describe it—this is blatant fraud by our chief executive, and it’s another piece in a clear pattern of corruption from her administration.

In June of 2024, an eye-opening report was released uncovering an alleged pay-to-play scheme between Hobbs and an Arizona group home that is still being investigated. According to the report, Sunshine Residential Homes donated approximately $400,000 toward the Arizona Democratic party, Hobbs’ gubernatorial campaign, and her inaugural fund. And what did the group home receive in return? A nearly 60 percent rate increase during a time when the Arizona Department of Child Safety cut loose 16 providers!

Speaking of her inaugural fund, Hobbs kicked off her reign as governor with a healthy dose of corruption when she collected $1.5 million in donations to cover an inauguration event that cost less than $210,000. That left her with a bunch of leftover money—much of which she used to try to flip control of the Arizona legislature (another Hobbs failure).

And if all this is not enough to show a clear pattern of fraud and corruption, Hobbs has also been providing sweetheart contracts for family members of her administration. This past November it was discovered that Hobbs approved $700,000 to be spent on a new state logo. Yes. $700,000 on a new state logo…because that’s exactly how the people of Arizona wanted to spend their money after four years of Bidenflation.

But it’s not even the money spent that’s the worst part. The $700,000 contract for this new logo was given to Urias Communications, owned by the brother of the now-former Office of Tourism Director Lisa Urias.

We have seen enough. It’s time to hold Katie Hobbs’ feet to the fire.

While there are several ongoing criminal investigations transpiring against the Hobbs administration by AG Mayes and Maricopa County Attorney Rachel Mitchell, the moment has come for the Arizona legislature to consider all options against the governor for this unprecedented scandal. And with that, impeachment should not be off the table.

Hobbs diverted millions for an unauthorized program that has blown a hole in our state’s budget. And her response is to blame lawmakers and publish social media rants blaming everyone but herself for the theft. This would be like someone getting caught for embezzling funds from a pension fund and then telling people that not only are they not responsible but that the plan administrators need to backfill those losses.

It’s ridiculous—just like the last two years of Katie Hobbs.

Help Protect Freedom in Arizona by Joining Our Grassroots Network

Arizona needs to have a unified voice promoting economic freedom and prosperity, and the Free Enterprise Club is committed to making that happen. But we can’t do it alone. We need YOU!

Join our FREE Grassroots Action List to stay up to date on the latest battles against big government and how YOU can help influence crucial bills at the Arizona State Legislature.

Arizona Free Enterprise Club Stands with President Trump’s Efforts to Restore Freedom for the American Transportation Industry

Arizona Free Enterprise Club Stands with President Trump’s Efforts to Restore Freedom for the American Transportation Industry

PHOENIX, ARIZONA – In the first month of President Donald J. Trump’s administration, the United States Department of Transportation (DOT) has taken several steps to restore freedom, consumer choice, and our nation’s cherished values to the American transportation industry. Arizona Free Enterprise Club President Scot Mussi issued the following statement:

“We applaud President Trump for keeping his promises in issuing policies that promote freedom and choice for American transportation. Over the past four years, hardworking taxpayers have been oppressed by the previous administration’s regulatory overreach and woke agendas imposed by faceless bureaucrats. The Trump administration’s efforts on several transportation-related fronts will give significant savings to Arizonans and their children and grandchildren – not to mention eliminating destructive Diversity, Equity, and Inclusion initiatives and other radical policies that plagued our nation’s workforce.”

Mussi added, “The Arizona Free Enterprise Club stands with President Trump, Secretary Sean Duffy, and the members of their team, as they restore freedom and commonsense to the American transportation industry; and we call on the U.S. Congress to codify these meaningful executive orders into law.”

Some of the actions from the Trump Administration on the transportation front include:

    • Executive Order 14148, “Initial Rescissions of Harmful Executive Orders and Actions,” to revoke orders from the previous administration “that directed or encouraged [the Department of Transportation] and other agencies of the Executive Branch to use their regulatory powers, including the power to set corporate average fuel economy (CAFÉ) standards, to achieve the previous administration’s policy goal of forcing rapid electrification of the Nation’s motor vehicle fleets.”
    • Executive Order 14154, “Unleashing American Energy,” to “announce that it is the policy of the current Administration to promote the production, distribution, and use of reliable domestic energy supplies, including oil, natural gas, and biofuels; to ensure that all regulatory requirements related to energy are ‘grounded in clearly applicable law’; and ‘to elimination the electric vehicle (EV) mandate and promote true consumer choice’” with multiple actions to remove regulations and empower consumer choice across the country.
    • Memorandum of Implementation of Executive Orders Addressing Energy, Climate Change, Diversity, and Gender to enact executive orders that “direct Federal agencies, where and as consistent with law, to identify and eliminate all orders, directives, rules, regulations, notices, guidance documents, funding agreements, programs, and policy statements, or portions thereof, which were authorized, adopted, or approved between noon on January 20, 2021 and noon on January 20, 2025, and which reference or relate in any way to climate change, ‘greenhouse gas’ emissions, racial equity, gender identity, ‘diversity, equity, and inclusion’ goals, environmental justice, or the Justice 40 Initiative.”
    • Order Ensuring Reliance Upon Sound Economic Analysis in Department of Transportation Policies, Programs, and Activities, which “updates and resets the principles and standards underpinning U.S. Department of Transportation (DOT) policies, programs, and activities to mandate reliance on rigorous economic analysis and positive cost-benefit calculations and ensure that all DOT grants, loans, contracts, and DOT-supported or – assisted State contracts bolster the American economy and benefit the American people.”
    • Rescission of the previous administration’s rule that required “state transportation departments to measure and establish declining targets for carbon dioxide emissions on federally supported highways.”

Help Protect Freedom in Arizona by Joining Our Grassroots Network

Arizona needs to have a unified voice promoting economic freedom and prosperity, and the Free Enterprise Club is committed to making that happen. But we can’t do it alone. We need YOU!

Join our FREE Grassroots Action List to stay up to date on the latest battles against big government and how YOU can help influence crucial bills at the Arizona State Legislature.

Scottsdale Council Moving Fast to Repeal Woke Agenda Left Behind by Their Predecessors

Scottsdale Council Moving Fast to Repeal Woke Agenda Left Behind by Their Predecessors

“Drain the swamp” is fun to say, and it makes for a great slogan for an election campaign. But too often, that’s where it stops. How many times have you heard politician after politician use such a phrase only to be elected and leave the swamp intact—or make it murkier? But now, it’s 2025. President Trump is back in office, and he is setting a standard of excellence when it comes to draining the swamp—especially on some key issues. And Scottsdale’s newly elected city council is following his lead.

President Trump unleashed a torrent of Executive Orders that have unleashed fossil fuel production in America, rolled back the Green New Deal climate cult fantasy, ended DEI and other race-based hiring and employment practices, and is taking a sledgehammer to the administrative state by letting Elon Musk identify and eliminate billions in wasteful spending.

As we have watched the Trump team move at warp speed to deliver on their campaign promises, we were curious to see if any other state or local governments would follow Trump’s lead at plowing ahead with DOGE-style meaningful reform. Here in Arizona one city has: Scottsdale.

After years of Scottsdale governance that was far more liberal than its electorate, voters ousted all four incumbents on the council, replacing them with conservative firebrands ready to put their predecessor’s far-left agenda into the woodchipper.

Of course, this didn’t stop the lame-duck council from trying to set up roadblocks for their replacements. Immediately after their defeat, Scottsdale began passing all sorts of woke policies before the end of their tenure. One of those policies, championed by former Scottsdale Mayor David Ortega, was the city’s sustainability plan. Passed in the 11th hour before the new city council took office, the plan called for the city government to:

    • Reduce citizens’ household trash output by 90% in 15 years.
    • Ration citizens’ electric usage—regardless of power source.
    • Ration water usage for single-family homes while giving businesses and apartments a pass.
    • Outsource local control to the agendas and politics of county government.
    • Redirect your tax dollars to speculative environmental programs.
    • Subject citizens’ home and business to monitoring and auditing.

Reduce citizens’ trash by 90%?!? Ration water for families—except for businesses and apartments?!?

The plan was a complete nightmare, and thankfully, the new city council didn’t waste any time. Immediately after taking office, it voted to repeal Scottsdale’s Green New Deal sustainability plan. This is a huge win for Scottsdale residents, but the new city council wasn’t done yet.

Earlier this week, the Scottsdale City Council also voted to end discriminatory “diversity, equity, and inclusion” (DEI) policies. In its place, it adopted a new ordinance that will ensure city employees are “hired, evaluated, and promoted based on merit.” What a concept! You mean an organization should hire someone based on their qualifications? It’s amazing that it takes an ordinance to make this happen, but welcome to 2025.

On top of this, Scottsdale will also be restoring sanity by no longer wasting taxpayer dollars on DEI programming, trainings, and other initiatives—including the Office of DEI. And if that’s not enough, city employees will be required to return to in-person work.

We’re just over a month into the Trump administration—part two—and conservative majorities in key areas around the state. With big wins at both the federal and local level, we can’t take our foot off the gas. President Trump has taken the lead, and it’s good to see city councils like the one in Scottsdale following with strong leadership and a firm commitment to restore sanity. Now it’s time for every jurisdiction throughout Arizona to get on board and follow Scottsdale’s blueprint to drain the swamp.

Help Protect Freedom in Arizona by Joining Our Grassroots Network

Arizona needs to have a unified voice promoting economic freedom and prosperity, and the Free Enterprise Club is committed to making that happen. But we can’t do it alone. We need YOU!

Join our FREE Grassroots Action List to stay up to date on the latest battles against big government and how YOU can help influence crucial bills at the Arizona State Legislature.

Trump’s EOs to Unleash American Energy and End the Climate Cult Fantasy Are a Big Win for Americans

Trump’s EOs to Unleash American Energy and End the Climate Cult Fantasy Are a Big Win for Americans

President Trump’s historic victory in the November election gave him a clear mandate from the American people. And so far, he hasn’t wasted any time getting to work. In his first month back in office, Trump signed 45 Executive Orders (EO) in an effort to put America first and undo much of the damage created by the Biden administration. And that’s especially true with his executive actions to unleash American energy.

Ending the Net Zero Climate Cult Fantasy

For four years under President Biden, the American people were forced to endure an administration that was hellbent on pursuing a net zero agenda. Across the country, they pushed these radical and costly climate action plans to fundamentally transform and restrict the energy options available to consumers. Along with this came calls from the Left to ban gas stoves, gas cars, gas-powered lawn equipment, and hundreds of other draconian ideas to limit the freedom of the American people.

If the high cost of these plans wasn’t enough, they have also proven to be unreliable. States and countries that have committed to energy sources like solar and wind as part of this net zero fantasy have experienced rolling blackouts, continually demand that their customers use less, and eventually have to make haste to open reliable sources of generation they had closed down. Isn’t that right, California?

But Trump’s Executive Order 14154 unleashes fossil fuel production and use in America while unwinding much of the damage caused by the Biden administration. Under Trump, the government will promote the production, distribution, and use of reliable domestic energy supplies, including oil, natural gas, and biofuels. And it will also eliminate the electric vehicle (EV) mandate in order to promote consumer choice across the country.

On top of this, a recent memo directs federal agencies to eliminate anything approved under the Biden administration that references climate change; greenhouse gas emissions; racial equity; gender identity; “diversity, equity, and inclusion” goals; environmental justice; and the Justice 40 Initiative. This is a big win for America, but there is still more work to do.

Next Step: Rolling Back the Administrative State

Trump’s executive actions were the critical first step in freeing the country from this net zero madness, but the pushback can’t stop there. The Trump administration must begin the difficult work of stripping the administrative state of their ability to coerce states into adopting Green New deal policies through brute bureaucratic enforcement.

Just look at how the Environmental Protection Agency (EPA) has been weaponizing their ozone rules to force states into adopting California’s net zero agenda. We’ve seen it right here in Arizona.

According to the EPA, Maricopa County is an ozone nonattainment area under the Clean Air Act. As a result of this determination, they are threatening heavy sanctions against the state unless we adopt “control measures” to deal with the problem. And it just so happens that those control measures align perfectly with the goals of the radical climate cult lobby—banning gas cars, stoves, leaf blowers, and all gas-powered industrial equipment that make our economy function.

But here’s the thing. Arizona and, more specifically, Maricopa County, doesn’t even have an ozone problem. Current levels of ozone in the region are lower today than they were 20 years ago.  And it turns out that most of the ozone we do have in the atmosphere doesn’t even come from anyone in the county—it is either naturally occurring or comes from international sources, primarily China and Mexico.

Other states across the country have the exact same problem, yet the EPA doesn’t care because it’s not really concerned about where the ozone comes from. They just want to use it as a cudgel to beat states into submission.

This sort of bullying from the administrative state must be stopped by the Trump administration. It is critical for the federal government to curb and repeal any agency rules designed to force states to adopt Green New Deal policies like banning gas cars and gas stoves. And we certainly should not be allowing any federal agency to punish U.S. citizens and businesses for pollution coming from China and Mexico. In his second term, our 47th President has shown a knack for fixing some significant problems in the government. Now, the Club is excited to get to work with his administration to fix this problem—and take the next step in unleashing American energy.

Help Protect Freedom in Arizona by Joining Our Grassroots Network

Arizona needs to have a unified voice promoting economic freedom and prosperity, and the Free Enterprise Club is committed to making that happen. But we can’t do it alone. We need YOU!

Join our FREE Grassroots Action List to stay up to date on the latest battles against big government and how YOU can help influence crucial bills at the Arizona State Legislature.

The Arizona Free Enterprise Club Is Committed to Stopping the Hobbs Agenda

The Arizona Free Enterprise Club Is Committed to Stopping the Hobbs Agenda

In the last two years, Katie Hobbs has failed to make good on any of her top priorities, and after spending millions to flip the legislature, she was only left with more Republicans in both chambers and being called the “biggest loser” of this last election. Back this year with new goals outlined in her State of the State address and budget proposal, the legislative majority must ensure that, once again, the Hobbs agenda is stopped dead in its tracks. The Arizona Free Enterprise Club is committed to helping lead the fight to block all of Hobbs’ priorities.

Reckless Spending & A Broken Budget Proposal

First and foremost is Hobbs’ budget proposal. Last year, the legislature crafted a budget that finally slowed the spending growth in the state, but now Hobbs is proposing a $1 billion+ spending increase, representing 7.5% growth in spending over last year. If that wasn’t bad on its own, Hobbs’ proposal is a broken deficit budget. Hobbs failed to account for any formula growth in the Medicaid program, which is completely unheard of. Once included, the Hobbs budget proposal results in a $192 million deficit in 2027, growing to a staggering $390 million deficit in 2028.

Housing Costs

Included in her broken budget is one of Hobbs’ top priorities: extending and expanding the state level low-income housing tax credit, a program that is rife with fraud and abuse and comes with a $600 million price tag. Hobbs is the one who unilaterally shut down single family house development last year because of a manufactured water crisis and took illegal actions late last year to further limit homebuilding in the state, for which she is being sued. Hobbs has only added to the rise in housing costs, and her “solutions” will only continue to drive them up further. They should receive no consideration by the legislature.

Attacking School Choice

Hobbs, unsurprisingly and predictably, is back again attacking the widely popular universal ESA program, continuing to spread the lie that the program is “bankrupting the state.” The ESA program has resulted in savings for taxpayers as more and more students benefit from the program, evidenced by the fact that the state once again has a surplus. Last year she tried (and failed) to regulate the program out of existence, and this year her plan is to place income caps to kick more than 12,000 students currently benefiting from ESAs off and force them back into government schools. Hobbs calling for “accountability” in the program is especially hypocritical considering that, just a week after her State of the State address, a public school district went into state receivership for a $12 million budget shortfall after running up a debt of $28.5 million. Hobbs should start with cleaning up fraud in the public school system before taking shots at the ESA program.

Border

Though Hobbs talked tough on the border in her State of the State address, just days later she vowed not to assist the federal government in deporting illegals. This is not shocking considering that last year she vetoed the Border Security Act, which would have empowered local law enforcement to apprehend and deport individuals who enter our country illegally outside of a lawful port of entry. But the voters spoke. After being vetoed, the legislature placed it on the ballot, where it was overwhelmingly approved in November.

Hobbs’ priorities should be a nonstarter for the legislature. Her number one enemy, the ESA program, is not bankrupting the state, but her broken budget proposal certainly would. Her handout to developers by extending the low-income housing tax credit program won’t lower housing costs, but abandoning her manufactured water crisis would. And her border proposals won’t protect Arizona, but working with the Trump administration would.

Help Block the Hobbs Agenda

The Katie Hobbs Agenda should be entirely dead on arrival at the legislature.

Please SIGN THIS PETITION to urge the legislature to stand firm against the Hobbs agenda entirely!

If Democrats Want to Stop Fraud, They Should Start with Public School Districts

If Democrats Want to Stop Fraud, They Should Start with Public School Districts

With the new year here and the 2025 legislative session officially underway, Democrats are already proving they can’t learn a lesson. Led by Governor Katie Hobbs, one of their primary targets is once again…you guessed it…Arizona’s Empowerment Scholarship Account (ESA) program. Stop us if you’ve heard this before.

You would think that Democrats would find a different target after getting trounced in an election where teachers’ unions and other anti-school choice groups made it a referendum on school choice. But no. After 2 ½ years and multiple failures trying to overturn school choice, they’d rather double down on their same tired and out-of-touch policies.

This time, Hobbs and the Dems say they want to roll back ESAs because of all the supposed “fraud” in the program. Never mind the fact that the rate of waste, fraud, and abuse in the ESA program is extremely low. Never mind the fact that ESAs have proven to be far more financially accountable than other government programs. Democrats don’t care about facts. Instead, they want to regulate this popular program while Arizona’s Democrat Attorney General Kris Mayes asks for more funding to investigate ESA fraud.

But here’s a message for Hobbs, Mayes, and the rest of the Democrats:

If you care so much about fraud, why not investigate Arizona’s public school districts?

They could start with Isaac Elementary School District (IESD).

Earlier this week, IESD was placed under a state receivership after it was determined that it had a budget shortfall of over $12 million! And this didn’t come as a surprise. The Auditor General has been trying to stop the mismanagement of funds in this school district for five years!

A $12 million budget shortfall in just one school district is mind-blowing, but IESD is certainly not alone. School districts throughout our state have been mismanaging millions, going into default, and committing fraud for years.

Back in 2022, Mesa Public Schools (MPS) failed to explain where $32.3 million of their federal emergency funds slated for COVID expenses went. The investigation came after reports that MPS teachers were asking parents to donate basic school supplies they were running out of because the district wouldn’t cover them. But instead of having a clear explanation for the money that was buried under expenses listed as “other,” “indirect costs,” and “etc.,” MPS officials dodged the question and claimed no records existed for those categories.

Also, in 2022, a former superintendent and another employee from Toltec Elementary School District were indicted for fraudulent schemes, misuse of public monies, and theft. This came after the employees secretly used their personal monies to fraudulently inflate their Arizona State Retirement System benefits.

Then, there’s Higley Unified School District (HUSD). Back in 2021, HUSD’s now-former superintendent, Dr. Denise Birdwell, was indicted on 18 counts related to procurement fraud, misuse of public monies, fraudulent schemes and practices, and more. This came after the Auditor General found that Dr. Birdwell conspired with employees of Education Facilities Development Services (EFDS) to circumvent school district procurement rules to improperly award the group with a $2.5 million project development service contract for the construction of two new schools. On top of that, the Auditor General also found that Dr. Birdwell misused public monies when she authorized the unlawful use of $6 million in restricted public funds toward the construction of the schools.

And let’s not forget what happened in Yuma County toward the end of last year when a former superintendent secretary with the Hyder Elementary School District was indicted for theft, misuse of public monies, and forgery. The indictment came just eight weeks after the same woman was arrested in Scottsdale in connection with an elaborate scheme against the Cocopah Middle School Association of Parents and Teachers.

You won’t hear about any of this type of fraud from Hobbs, Mayes, or other Democrats because this isn’t about fraud. It never was. They just want to find any way they can to regulate our state’s historic school choice program—all to protect their buddies in the teachers’ unions.

But here’s a message for Hobbs and Mayes. Whether you like it or not, school choice is here to stay in Arizona. And we will keep fighting back with this winning message because every student in our state deserves the best education possible and the funding to make it happen. Instead of griping about ESAs, which have way more oversight than the typical school district, show us that you really care about fraud and start investigating our public schools.

Help Protect Freedom in Arizona by Joining Our Grassroots Network

Arizona needs to have a unified voice promoting economic freedom and prosperity, and the Free Enterprise Club is committed to making that happen. But we can’t do it alone. We need YOU!

Join our FREE Grassroots Action List to stay up to date on the latest battles against big government and how YOU can help influence crucial bills at the Arizona State Legislature.