Texas Attorney General Ken Paxton has filed a lawsuit against ActBlue, the massive fundraising platform used by Democratic campaigns, alleging the organization misled the public about its security measures.
The lawsuit, filed in Tarrant County, claims ActBlue’s systems allow for fraudulent and foreign donations through the use of gift cards and prepaid debit cards.
The legal action follows a lengthy investigation by the Office of the Attorney General (OAG). According to the petition, ActBlue represented to Congress and the public in late 2024 that it had implemented strict protocols to block gift card donations and vet foreign contributors. However, Texas investigators claim these assertions were false.
“The radical left has relied on ActBlue as a way to funnel foreign donations and dark money into their political campaigns to subvert our laws and compromise the integrity of our elections,” Attorney General Paxton stated. “ActBlue lied to Congress and to the American people, and I will ensure justice is served.”
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To test the platform’s safeguards, OAG investigators performed undercover donations in February 2026. According to court filings, investigators successfully sent money to the Democratic National Committee and Texas-based candidates using pseudonyms and untraceable gift cards purchased with cash.
These transactions were processed despite ActBlue’s public claims that such payment methods were no longer accepted.
The lawsuit highlights a 2026 New York Times report involving internal legal memos from ActBlue’s own outside counsel. Those memos reportedly warned the organization that its vetting processes were not as robust as described to regulators and that there was a “substantial risk” that illegal foreign funds had been processed.
ActBlue has previously dismissed similar allegations as “bogus claims” and “partisan attacks.” However, the state’s petition argues that the platform’s failure to maintain identity verification protocols creates a loophole for “straw donations” and foreign interference.
The State of Texas is seeking more than $1 million in monetary relief and civil penalties.
Additionally, the Attorney General is asking the court for temporary and permanent injunctions to immediately stop ActBlue from accepting gift cards and prepaid debit cards for any political contributions processed through its platform.
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