Hobbs Sets New Records for Vetoes and Scandals

Governor Katie Hobbs is entering her reelection campaign under a growing cloud of controversy, with a string of ethics complaints and documented mismanagement issues haunting her first term. At the same time, the Arizona Democratic Party just ousted its first black chair as Democrats experience their lowest recorded approval rate in 30 years, per Politico.

Here are some of the highlights of the issues that Hobbs’s critics have pointed to:

• In June 2023, ADOH wired $2 million in taxpayer funds to scammers impersonating representatives from a nonprofit and a title company. The department, tasked with distributing affordable housing money, had no policies in place to verify wire transfer instructions, according to a 2024 report by the Arizona Auditor General. The funds were stolen, and some were ultimately traced overseas to Nigeria. However, the fraud wasn’t discovered until months later, when the intended recipient alerted state officials that no money had arrived.“The Department did not have policies and procedures for initiating and approving wire transfers,” the audit concluded, calling the fraud preventable and a direct result of “lax oversight” by leadership at ADOH (Arizona Auditor General, Report No. 24-114).
• At nearly the same time as the Department of Housing wire fraud scandal, the Hobbs administration came under fire for approving a $700,000 taxpayer-funded tourism logo and rebranding initiative initially disclosed by the Arizona Agenda. The Agenda first reported that approximately $27,500 of the rebrand funds went to Heart & Soul Marketing, which in turn paid Arizona designer Kevin Coochwytewa, brother of Urias Communications’ CEO, a firm founded by then–state Tourism Director Lisa Urias. Although Urias denied any financial benefit for herself or her firm and framed the backlash as politically motivated, Governor Hobbs accepted Urias’s resignation, emphasizing that “anyone who has the privilege of serving the public needs to be above reproach… This appearance of conflict is not acceptable.” Her resignation came less than 48 hours after the Arizona Agenda’s report broke.
• Also in 2024, the Maricopa County Superior Court issued a ruling stating that Gov. Katie Hobbs had violated Arizona law by appointing 13 agency heads without Senate confirmation. The court found her use of “executive deputy directors” was an improper attempt to bypass legislative oversight.Senate President Warren Petersen sharply criticized Governor Hobbs’ maneuver as an unlawful circumvention of legislative authority. In a June 5, 2024, statement, Petersen declared, “Contrary to what she may believe, [Hobbs] is not above the law, and the Legislature is fulfilling its role in serving as the constitutional check and balance against her abuse of power.” He said that he expected the governor to cooperate “so that we may reinstate sanity after this chaotic period she created for the entire state of Arizona.”
• High-level resignations have also rocked the administration. Josselyn Berry, Hobbs’s first press secretary, resigned after tweeting a meme about threatening to shoot “transphobes” hours after the Covenant School Shooting in Nashville, Tennessee. Then, Hobbs’s Chief of Staff, Allie Bones, resigned on May 25, 2023, after serving just under five months in the position, which press outlets described as one of the shortest tenures for a gubernatorial Chief of Staff in Arizona history. In April 2025, two top Hobbs officials—AHCCCS Director Carmen Heredia and Department of Health Services Director Jennie Cunico resigned, citing political pressure and confirmation gridlock. Their departures were seen as fallout from Hobbs’ ongoing battles with the Arizona Senate (azgovernor.gov).
• Arizona Attorney General Kris Mayes started a criminal and ethics investigation regarding Sunshine Residential Homes. This politically connected group home operator donated over $400,000 to Hobbs’ inaugural fund and the Arizona Democratic Party. The company later received a 60% reimbursement rate increase from the Department of Child Safety—far above the rate received by other providers. The AG’s Office has not recently updated the public on the status of this investigation, which is particularly troubling given that Hobbs and Mayes have just created a joint PAC for their mutual reelection.
• As first detailed by the Arizona Free News and later confirmed by reporting from the Arizona Capitol Times, Governor Katie Hobbs created a new position titled “senior executive consultant” for former Democratic politician Dana Allmond, awarding her a $170,000 annual salary, while simultaneously approving a $114,000-per-year contract for Allmond’s assistant, Marcus Trombetta. Over two years, the combined taxpayer cost for the two roles is expected to reach nearly $600,000. The timing raised eyebrows across party lines, as the appointments came while the Department of Economic Security, the agency issuing the contracts, was undergoing a 5% staff reduction due to budget cuts.
• In March 2024, Governor Hobbs celebrated Arizona’s ranking as 4th in the nation for job growth, claiming creation of 81,800 jobs during her first year in office, more than triple the national average in workforce growth. By early July 2025, independent data confirmed that Arizona had fallen to 47th in the nation in year‑to‑date job growth.
• Arizona’s top budget director, Sarah Brown, submitted her resignation, effective February 12, after about two years in that role. Her departure came just hours before public reports emerged suggesting $339 million had “disappeared.” In January, Hobbs’ administration notified the Arizona Legislature that state agencies were projected to require an additional $339 million in supplemental funding to sustain their existing operations and programs. The Arizona Auditor General’s office has not released any report or announcement indicating its review of the supplemental funding request.
• Hobbs broke a modern record for most vetoes by an Arizona governor in a single legislative session, blocking a wide range of bipartisan bills. For example, many of them were related to housing reform, water rights, and family caregiver pay. Opponents say she uses the veto pen to play political games while ignoring real problems.

Governor Hobbs is heading into her reelection not with momentum, but with mounting distrust, say critics. What was once framed as a fresh start for Arizona has unraveled into a cautionary tale of unchecked power, blurred ethical lines, and political miscalculation. As public confidence erodes and accountability remains elusive, voters will soon decide whether the state can afford another term defined by crisis management and controversy.