State prosecutors drop criminal charges against Governor Katie Hobbs in a pay-to-play probe involving a group home company that donated heavily to her campaign and later received a rate hike — but no direct quid pro quo was found. The company, Sunshine Residential Homes, threatened to cut beds unless compensated, citing federal rates for immigrant children, and the increase was approved by the then-child safety director, not the governor. While Attorney General Kris Mayes says no bribery occurred, she calls for legislative reform on contractor donation transparency. A separate probe by GOP officials and the state auditor is ongoing, and lawsuits over the death of a diabetic child in the facility remain unresolved.
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