Arizon’s Democrat Governor, Katie Hobbs, is confronting escalating challenges in her 2026 reelection bid. Her administration is grappling with a series of controversies and a declining approval rating, casting doubt on her prospects against a primary challenger or the 2026 general election. Recent polls indicate her favorability has dipped to 36%, with 42% disapproving of her performance.

Allegations of a “pay-to-play” scheme involving substantial donations to her inauguration fund have resulted in an ongoing investigation by the Arizona Attorney General’s Office. Additionally, Republicans point to Hobbs’ extensive use of her veto power, rejecting over 200 bills put forward by the Republican-majority legislature since taking office. Further exacerbating her administration’s turmoil is the recent resignation of her budget director amid a $339 million discrepancy in the state’s financial plan. The mystery of the missing millions has intensified bipartisan scrutiny over her leadership and fiscal management.

While Hobbs asserted in her gubernatorial stump speech, “I’ve never lost an election,” many politicos ask, “How can she win?”

Here is a rundown of a number of the high-visibility missteps and scandals critics point to:

Sunshine Residential Homes Rate Increase: Arguably the worst scandal of the Hobbs administration. Sunshine Residential Homes, a group home operator, received a substantial rate increase after making considerable donations to her inauguration fund and the Arizona Democratic Party. This situation has raised concerns about a potential “pay-to-play” scheme. Originally reported on June 10, 2024. View here.

Medicaid Contract Awards: In August 2024, an Administrative Law Judge (ALJ) identified significant flaws in the Arizona Health Care Cost Containment System’s (AHCCCS) process of awarding $15 billion in Medicaid contracts. The ALJ cited violations of statutes and a lack of transparency, leading to further scrutiny of the Hobbs administration’s contracting practices. Originally reported on October 2, 2024. View here.

Circumventing Senate Confirmations:  Hobbs faced legal challenges after appointing “Executive Deputy Directors” (EDDs) to lead state agencies without obtaining the constitutionally required confirmation from the Arizona Senate. This move was intended to bypass Senate oversight, as EDDs do not require legislative approval. However, on June 5, 2024, Maricopa County Superior Court Judge Scott Blaney ruled that this strategy violated state law, emphasizing that the governor cannot circumvent the Senate’s confirmation authority by appointing de facto agency heads under alternative titles. Originally reported on June 12, 2024. View here.

$700,000 Logo:  The Arizona Office of Tourism allocated $700,000 in federal pandemic relief funds for a comprehensive rebranding initiative, which included the design of a new state logo. A portion of this budget, approximately $27,500, was paid to an artist with close ties to Hobbs’ Director of the Arizona Office of Tourism, Lisa Urias. Critics questioned the propriety of the selection process and the substantial cost associated with the logo redesign. Originally reported on November 22. 2024. View here.

Acceptance of Super Bowl Tickets: In February 2023, six senior staff members in Hobbs’ office received complimentary tickets to Super Bowl LVII, held at State Farm Stadium in Glendale, Arizona. These tickets, provided by the Arizona Office of Tourism, were valued between $4,000 and $40,000 each. The acceptance of these tickets raised ethical concerns and questions about potential violations of state laws prohibiting public employees from accepting gifts that could influence their official duties. Critics argued that the acceptance of such high-value gifts could be perceived as a conflict of interest based on Arizona Revised Statute 41-1232, which states: “A state officer or state employee shall not accept an expenditure or single expenditure for entertainment from a principal, designated lobbyist, authorized lobbyist, lobbyist for compensation, public body, designated public lobbyist or authorized public lobbyist or any other person acting on that person’s behalf.”

High Staff Turnover: The Hobbs administration experienced significant staff turnover in its first year, most notably Press Secretary Josselyn Berry and Director of Communications Murphy Hebert. Berry resigned in March 2023 following a controversial social media post. Shortly thereafter, Hebert also departed from her position. These resignations, among others, have raised concerns about stability and morale within the governor’s office.

Record-Breaking Vetoes:  In her first year in office, Hobbs set a state record by vetoing 143 bills during the legislative session. This surpassed the previous record of 58 vetoes in a single session, held by former Governor Janet Napolitano since 2005. Hobbs exercised her veto power predominantly on Republican-backed legislation, citing that many of the bills were “unnecessary” or did not align with her administration’s priorities. Notable vetoes included measures related to election procedures, firearm regulations, and education policies. In total, she has issued over 200 vetoes, earning the nickname “Veto Queen.”

Arizona Department of Housing (ADOH) Wire Fraud: ADOH fell victim to a wire fraud scheme, resulting in the loss of $2 million from the State Housing Trust Fund. Fraudsters impersonated officers from a title company and a nonprofit housing organization collaborating with ADOH on an affordable housing project. The department, lacking adequate wire transfer policies and procedures to prevent such fraud, unknowingly transferred the funds to these fraudulent actors. The deception remained undetected until December 2023, when the legitimate nonprofit organization notified ADOH that it had not received the expected funds. Hobbs was criticized on X  because the head of this agency was among those Hobbs appointed while skipping the Senate confirmation process.