ActBlue, the online fundraising vehicle for Democratic candidates and causes, filed suit on Friday in federal court in Boston seeking to prevent Texas Attorney General Ken Paxton from pursuing a separate state lawsuit and ongoing investigative efforts, which ActBlue describes as an unlawful campaign of retribution.
The federal complaint asks a judge to enjoin Paxton from moving forward with the Texas case he filed last month that accuses the fundraising platform of misleading Congress and the public about how it handles donations. In its filing, ActBlue's attorneys argued that Paxton is using the powers of his office to impose legal penalties on the group as payback for its political views and affiliations.
"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.
Paxton's office did not provide a response to a request for comment.
Paxton initiated his Texas state lawsuit on April 20, part of a set of Republican-backed inquiries into ActBlue and other online fundraising platforms. That wave of scrutiny followed a directive last year from President Donald Trump urging the U.S. Department of Justice to investigate online fundraising intermediaries.
In the state complaint, Paxton seeks monetary penalties and asks a court to prevent ActBlue from accepting donations made with gift cards and prepaid debit cards on its platform. The Texas filing alleges that those payment methods can hide a donor's true identity and permit improper contributions, including from individuals outside the United States. The lawsuit further asserts that ActBlue continued to process gift card donations despite saying in 2024 it would stop doing so.
In its federal complaint, ActBlue countered that the Texas action is riddled with what it called "false and inflammatory allegations." The platform said investigators' attempts to make gift card donations were repeatedly blocked by its automated safeguards, and it accused Paxton of singling out the organization in retaliation for its support of Democratic candidates.
ActBlue noted in its filing that since its founding in 2004 it has helped raise $19 billion for Democratic campaigns and causes. The complaint specifically cites donations raised for James Talarico, identified as Paxton's Democratic opponent in his current U.S. Senate campaign. According to the suit, after Talarico said he raised more than $2 million in 24 hours through ActBlue, Paxton dispatched investigators the following day to initiate the case against the fundraising platform.
The federal lawsuit seeks to block the Texas proceedings on constitutional grounds, arguing that the state's actions amount to retaliation that interferes with the group's free speech and associative rights under the First Amendment.
The dispute highlights a legal clash over the limits of state authority in policing online political fundraising and the protections afforded to platforms that facilitate contributions to campaigns and causes.