Progressive fundraising juggernaut ActBlue has taken legal action against Texas Attorney General Ken Paxton, alleging that his ongoing investigation and a recent lawsuit are politically motivated retaliation for the platform's support of Democratic candidates and causes. The lawsuit, filed Friday in federal court in Massachusetts, seeks to block what it describes as Paxton's retaliatory campaign.
In the filing, ActBlue's legal team argues that Paxton's actions violate the First Amendment's protections for free speech and political association. The platform contends that the Texas attorney general is using his office to punish ActBlue for its role in raising money for Democrats, including state Representative James Talarico, who is challenging Paxton in the Senate race.
“Paxton's decision to use his government office to target ActBlue with legal sanctions as retribution for its protected speech and political association is an affront to the Constitution and must not be tolerated,” the lawsuit states.
The Texas attorney general's office did not immediately respond to a request for comment on the new lawsuit. Paxton, who is seeking the GOP nomination for U.S. Senate, earlier this month filed a separate lawsuit in Tarrant County District Court alleging that ActBlue misled Congress and the public about its donation processes. He asked the court to bar the platform from accepting contributions via gift cards and prepaid debit cards.
“ActBlue lied to Congress and to the American people, and I will ensure justice is served. It has blatantly ignored state law that prohibits deceptive practices, and it must pay for its illegal conduct,” Paxton said in a statement at the time.
ActBlue, however, dismisses those allegations as baseless. The platform notes that its automated systems rejected attempts by Paxton's investigators to use gift cards, undercutting the core of his complaint. The Friday lawsuit characterizes Paxton's legal action as “rife with false and inflammatory allegations.”
The dispute traces back to 2023, when Paxton began investigating whether ActBlue was enabling donor fraud under Texas law. But ActBlue claims the timing of the latest escalation is telling: Paxton dispatched investigators to build a case against the platform just 24 hours after Talarico announced a $2 million fundraising haul. Talarico has since raised a massive $27 million in the first quarter of 2025, positioning himself as a strong Democratic contender.
“Paxton's actions toward ActBlue—the principal small-dollar fundraising platform for Democratic candidates and progressive causes—fit squarely within his broader pattern of targeting Democratic-aligned political infrastructure with investigations that far exceed the scope of Paxton's authority as Attorney General,” the lawsuit argues.
Paxton faces Senator John Cornyn in a May 26 runoff for the Republican Senate nomination. The winner will face Talarico in the general election this November. Notably, a recent poll showed Talarico edging both Paxton and Cornyn, underscoring the high stakes of the race.
This legal clash is the latest in a series of high-profile political disputes in Texas. In a separate case, a Texas appeals court recently blocked The Onion's takeover of Alex Jones' Infowars. Meanwhile, a multi-state lawsuit has targeted disability rights, threatening community integration efforts.
