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Texas Attorney General Ken Paxton filed a lawsuit Monday against ActBlue, a political donations platform that is primarily used by Democratic candidates.
The state court lawsuit is the latest in a string of investigations and legal actions Paxton and Congress have undertaken against the platform over the last few years. Paxton is asking a Tarrant County judge to stop the company from accepting donations via gift cards and prepaid debit cards, and fine them $10,000 per violation of the Deceptive Trade Practices Act.
Paxton claims that ActBlue allows improper donations from people outside the United States and those who have already hit the mandated donor limits. He opened an investigation into ActBlue in December 2023, and the next year, sent a letter to the Federal Elections Commission, claiming he had uncovered evidence that “bad actors can illegally interfere in American elections by disguising political donations.”
ActBlue did not immediately respond to a request for comment but has denied any wrongdoing throughout the investigations.
“Partisan allegations against ActBlue are completely baseless,” the company said in a May statement after the Justice Department announced an investigation into the group. “Let’s be clear: Donald Trump and his accomplices in the Republican party are targeting ActBlue as part of their brazen attack on democracy in America.”
Background: ActBlue is the main platform used by Democratic candidates and causes. Since its founding, more than 28 million people have donated through ActBlue, which processed $1.78 billion last year alone.
The group began facing pressure from Republican members of Congress in 2023, which Paxton followed by opening an investigation into Texas-based donations. In August 2024, Paxton claimed victory, saying ActBlue had agreed to start requiring CVV codes on credit card donations.
In April 2025, Trump ordered the Justice Department to investigate ActBlue, heightening fears among Democrats about the political targeting of the infrastructure that allows them to fundraise. Paxton also involved ActBlue in his investigation of Texas Democratic House members who left the state in the summer 2025 to protest mid-decade redistricting.
The compounding investigations have led to internal turmoil at ActBlue, The New York Times reported. Earlier this month, the newspaper reported that ActBlue lawyers raised concerns that the company’s systems were not as robust as top executives had told congressional Republicans that they were.
What Paxton is saying: Citing that recent reporting, Paxton filed his lawsuit Monday, saying that ActBlue “lied to Congress and to the American people.”
“It has blatantly ignored state law that prohibits deceptive practices, and it must pay for its illegal conduct,” Paxton said. “Fair elections are the foundation of our democracy, and I will work to ensure no illegal campaign donation flies under the radar.”
He is suing under the Deceptive Trade Practices Act, a consumer protection statute he has deployed repeatedly over the last year to go after left-leaning organizations. The civil penalties of up to $10,000 per violation could be significant if the judge were to rule against the company.
What ActBlue is saying: ActBlue has repeatedly denied any wrongdoing, arguing that this is politically motivated persecution.
“Bogus claims of money laundering through ActBlue are simply partisan attacks trying to stifle Democratic and progressive fundraising,” the company said in a statement. “These conspiracy theories have been repeatedly debunked by experts and have no basis in reality.”
The company has said that it takes fraud prevention seriously and has implemented significant systems to prevent foreign or straw donations.
Disclosure: New York Times has been a financial supporter of The Texas Tribune, a nonprofit, nonpartisan news organization that is funded in part by donations from members, foundations and corporate sponsors. Financial supporters play no role in the Tribune’s journalism. Find a complete list of them here.
