Hoffman steps back from Hobbs investigation amid scrutiny over Turning Point PAC payments
PHOENIX — State Sen. Jake Hoffman will no longer lead a Senate investigation into alleged pay-to-play activity involving Gov. Katie Hobbs, following scrutiny of political payments to Hoffman’s company from a group working to defeat the Democratic governor.
The Arizona Senate announced Monday that the investigation will move from the Government Committee, which Hoffman chairs, to the Appropriations Committee led by Sen. David Farnsworth, R-Mesa.
Former Arizona Supreme Court Justice Andrew Gould will serve as special counsel to the committee and oversee the inquiry. The previously scheduled Sept. 29 Government Committee hearing has been canceled, and subpoenas issued last week to Hobbs, Attorney General Kris Mayes and others will have to be reissued by Farnsworth if the investigation proceeds.
The change follows questions about Hoffman’s private political work.
Axios reported that Hoffman’s companies have received about $1.5 million to help defeat Hobbs. Hoffman’s company, 1Ten LLC, has received payments from Turning Point PAC for work supporting Republican gubernatorial nominee Andy Biggs and opposing Hobbs.
KJZZ similarly reported that Hoffman’s political consulting and advertising operation has received more than $1 million for work assisting Biggs’ campaign effort.
Hoffman rejected suggestions that the financial relationship prevented him from conducting an impartial legislative investigation.
In announcing the transfer Monday, Hoffman accused the “crooked political media” of focusing on his company’s work for Turning Point PAC rather than the underlying allegations involving Hobbs.
He said moving the inquiry to Farnsworth’s committee and bringing in Gould would eliminate questions about his role and ensure that “the evidence, not their predetermined political narrative,” determines whether legislative changes are warranted.
The Senate investigation centers on Sunshine Residential Homes, a provider that contracts with the Arizona Department of Child Safety to house foster children.
The Arizona Republic reported in 2024 that DCS approved a substantial rate increase for Sunshine after people connected to the company made large political contributions benefiting Hobbs and the Arizona Democratic Party.
According to Axios, Sunshine contributed $400,000 to Hobbs’ inaugural fund and the Democratic Party and later gave another $150,000 to Hobbs’ legal defense fund.
DCS ultimately increased the rates paid to Sunshine by roughly 60%, according to KJZZ. Republican lawmakers have argued the sequence of events warrants further investigation into whether political donations influenced the decision.
Mayes’ office spent approximately two years investigating the matter and announced in August that investigators had not found sufficient evidence to support bribery charges.
Hobbs has denied involvement in the decision to increase Sunshine’s reimbursement rates, and her campaign has characterized the Senate investigation as politically motivated.
Hobbs campaign spokesperson Michael Beyer told Axios Monday that Republicans were “scrambling to keep this taxpayer-funded sham alive,” arguing that previous reporting and the attorney general’s investigation found no wrongdoing by the governor.
The Senate inquiry is not the only investigation into the Sunshine matter. The Arizona Auditor General and Maricopa County Attorney’s Office have also been reviewing aspects of the case, while House Republicans previously hired outside counsel to investigate the allegations.
The timing of the Senate investigation has also drawn attention because of the approaching election.
Hobbs is seeking reelection against Biggs, while Mayes is running against Senate President Warren Petersen. Early voting begins Oct. 7.
Hoffman had issued subpoenas last week seeking testimony from Hobbs, Mayes, current and former state officials and people associated with Sunshine Residential Homes. At the time, he said the inquiry would be impartial and focused on determining whether state officials improperly rewarded a political donor.
No new hearing date has been announced.
Senate Republican spokeswoman Kim Quintero told Axios that Farnsworth will determine the next steps with Gould, including whether to reissue subpoenas and schedule testimony. The Senate also had not determined Monday how much Gould would be paid for his work.