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NewsFox News PoliticsMay 3, 2026United States

ActBlue Sues Texas Attorney General Ken Paxton Over Fundraising Investigation

The Democratic fundraising platform ActBlue has filed a federal lawsuit against Texas Attorney General Ken Paxton, alleging that his ongoing investigations and state-level lawsuit against the group constitute political retaliation. ActBlue is seeking a federal court order to block Paxton's actions, while Paxton maintains that his office is investigating the platform for potential fraud and illegal foreign donations.

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Why It Matters

This legal battle impacts the primary mechanism for small-dollar Democratic fundraising in the U.S. and could set a precedent for how state attorneys general investigate national political fundraising platforms.

Key Facts

  • ActBlue filed a federal lawsuit in Boston seeking to block Texas AG Ken Paxton’s investigations and state-level litigation against the platform.
  • Paxton’s state-level lawsuit, filed April 20, accuses ActBlue of misleading the public and Congress regarding donation processes, specifically alleging the platform allows fraudulent and foreign donations.
  • Paxton’s lawsuit seeks financial penalties and an injunction to stop ActBlue from accepting gift cards and prepaid debit cards.
  • ActBlue alleges Paxton’s actions are politically motivated retaliation, citing his current run for U.S. Senate and his focus on Democratic-aligned entities.
  • ActBlue claims Paxton’s investigators attempted three undercover transactions using American Express gift cards, all of which were rejected by ActBlue’s automated fraud-prevention tools.
  • ActBlue has raised $19 billion for Democratic campaigns since 2004, including $568 million in Q1 2026.
  • House committees have been investigating ActBlue for over a year and issued a 2025 report titled 'Fraud on ActBlue'.
  • The Democratic National Committee reportedly carried $17.5 million in debt as of winter 2026.
  • ActBlue alleges selective prosecution, noting that Paxton has not investigated the Republican counterpart platform, WinRed.

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