Arizona Senate Republicans escalated their pay-to-play investigation into Governor Katie Hobbs on Wednesday, with a newly appointed special counsel issuing subpoenas for records and testimony from the governor's office and state contracting officials.

The Republican-controlled Senate launched the investigation this month, alleging that campaign donors received favorable state contracts tied to the Department of Economic Security and disability services. Senate President Warren Petersen said the special counsel would have authority to compel documents and interview witnesses under oath.

Hobbs, a first-term Democrat facing reelection pressures, has dismissed the inquiry as partisan. Her office said the administration had cooperated with prior document requests and characterized the subpoenas as a political stunt timed to the 2026 election cycle.

The standoff sets up a likely legal fight over executive privilege and the scope of legislative oversight. Democratic lawmakers accused Senate Republicans of weaponizing investigative powers, while GOP leaders insisted the contracts warranted independent scrutiny.

"Arizonans deserve to know whether state contracts were awarded on merit or on political loyalty," Petersen said.