Federal judge blocks Texas AG Paxton lawsuit vs ActBlue

A federal judge in Massachusetts has blocked Texas Attorney General Ken Paxton from pursuing a state lawsuit against the Democratic fundraising platform ActBlue, ruling that the legal action was likely a politically motivated attempt to suppress protected political speech. The preliminary injunction, issued by U.S. District Judge Richard G. Stearns on Thursday, June 11, halts Paxton's case in Texas.

Judge Stearns found that Paxton's lawsuit, filed in April, was filed in retaliation for ActBlue's fundraising activities supporting his political rival. Paxton, the Republican nominee for a U.S. Senate seat, is running against Democratic state Representative James Talarico in the November 2026 election. In his 15-page order, Stearns wrote that the evidence compelled the conclusion that the action was filed to retaliate against ActBlue for fundraising on behalf of Talarico, describing it as an "adverse action" taken in bad faith.

The Texas lawsuit had alleged that ActBlue misled consumers and maintained unlawful practices that could allow for foreign and fraudulent donations through the use of gift cards and foreign prepaid debit cards. Paxton sought $1 million in civil penalties and...