Arizona prosecutors declined to file criminal charges against Gov. Katie Hobbs over allegations that she gave preferential treatment to Sunshine Residential Homes after the group-home company made political contributions. Attorney General Kris Mayes said investigators found no evidence of the necessary quid pro quo to support a bribery charge and concluded that Sunshine’s 30% rate increase, from $149 to $195 per bed, resulted from its leverage as the largest provider of beds for children in foster care. The company had warned it could shift about 290 beds to a federal program for unaccompanied immigrant children that paid nearly twice the state rate. Mayes said the investigation nevertheless showed a need for legislative reform on the transparency of political donations by state contractors. Hobbs denies involvement, and her spokesperson said the report confirmed she did not direct or instruct anyone about the increase. A separate investigation by Republican Maricopa County Attorney Rachel Mitchell and the state auditor general remains open. Sunshine also faces scrutiny over the 2022 death of 9-year-old Jakob Blodgett, for which no one has been charged.