Texas Attorney General Ken Paxton (R) announced Monday that his office is opening a formal investigation into the Southern Poverty Law Center (SPLC), accusing the civil rights organization of diverting donor funds to extremist groups it publicly condemns. The probe follows a federal indictment last month in Montgomery, Alabama, charging the SPLC with wire fraud, bank fraud, and money laundering conspiracy.
The Department of Justice alleged that the SPLC funneled more than $3 million in donations to individuals linked to the Ku Klux Klan and the American Nazi Party between 2014 and 2023. Prosecutors say the group used fictitious entities to disguise the transactions. Paxton, who is also running for the U.S. Senate, framed the investigation as a matter of donor trust and legal accountability.
Paxton’s Charges and Political Context
“The radical, woke SPLC was funding the very groups it was claiming to oppose,” Paxton said in a statement. “My office will ensure that the organization is held accountable for its blatant deception. Donors of the SPLC deserve to know if they have been manipulated into supporting a non-profit that gives millions of dollars to the KKK and other groups that they thought they were opposing.”
Paxton’s office has issued a Civil Investigative Demand—a pre-litigation discovery tool—to the SPLC to determine the “extent” of what he called deceptive donor solicitations and other potential violations of Texas law. The move adds to Paxton’s aggressive legal posture, which has included high-profile actions such as his lawsuit against Netflix over alleged data harvesting and a settlement with Texas Children’s Hospital over transgender care policies.
Federal Indictment Details
The 11-count federal indictment, unsealed last month, accuses the SPLC of orchestrating a scheme to secretly channel donated funds to individuals associated with the KKK, American Nazi Party, and other extremist outfits. Acting Attorney General Todd Blanche declared, “The SPLC is manufacturing racism to justify its existence. Using donor money to allegedly profit off Klansmen cannot go unchecked. This Department of Justice will hold the SPLC and every other fraudulent organization operating with the same deceptive playbook accountable. No entity is above the law.”
The SPLC pleaded not guilty earlier this month and has strongly denied the allegations. Founded in 1971, the organization has long been a prominent voice in criminal justice reform, voting rights advocacy, and monitoring hate groups. Its legal team has called the charges politically motivated.
Political Fallout and Broader Implications
Paxton’s investigation comes amid a heated Texas Senate race, where he faces competition from incumbent Sen. John Cornyn. Former President Donald Trump has so far declined to endorse either candidate, keeping the primary contest fluid. The SPLC case has also drawn attention to broader debates about nonprofit accountability and the use of charitable funds, with some conservative groups calling for increased scrutiny of civil rights organizations.
Legal experts note that the Texas investigation could amplify pressure on the SPLC, even as it fights the federal charges. The organization’s critics argue that the allegations, if proven, would represent a profound betrayal of donor trust. Supporters counter that the SPLC has been targeted by political adversaries seeking to undermine its work.
As the probe unfolds, Paxton’s office is expected to examine the SPLC’s fundraising practices and financial disclosures. The outcome could have significant implications for how Texas regulates nonprofit solicitations, particularly those involving politically charged causes. The SPLC has not yet commented on the Texas investigation specifically, but maintains its innocence in the federal case.
