The Shadow Fund: Secrets, Power Plays, and the Fight to Silence Beto O’Rourke
Texas Judge Issues Restraining Order Against Beto O’Rourke’s Nonprofit Over Alleged Illegal Fundraising
In a dramatic legal development out of Texas, a state judge has issued a temporary restraining order against former Congressman Beto O’Rourke and his political nonprofit, Powered by People, following allegations that the group engaged in illegal fundraising to support Democratic lawmakers who fled the state in 2021 to block Republican redistricting efforts.
The ruling, handed down Friday evening by Tarrant County District Judge Megan Fahey, sides with Texas Attorney General Ken Paxton, who accused O’Rourke and his organization of violating state election laws by raising and distributing funds for political purposes that included personal expenses such as travel, lodging, and fines.
According to Judge Fahey’s ruling, Powered by People’s actions “directly violate or cause others to violate” Texas law, particularly regarding how political contributions are collected and used. The judge emphasized that donors may have unknowingly supported activities that were outside legal boundaries.
“Defendants have and will continue to engage in unlawful fundraising practices,” Fahey wrote in her order. “Consumers are suffering irreparable harm by unknowingly contributing to political causes that are being used to support personal and logistical expenses in violation of state laws.”
The restraining order halts O’Rourke’s organization from raising further funds or providing financial assistance to the group of Texas Democratic legislators who left the state in 2021 to deny the Texas House a quorum, temporarily blocking the GOP’s redistricting bill. The lawmakers’ flight to Washington, D.C., drew national attention and became a political flashpoint, with Republicans labeling it a stunt and Democrats defending it as a necessary stand for voting rights.
Judge Fahey, a Republican appointee named to the bench by Texas Governor Greg Abbott in 2019, issued the order just hours after Paxton’s office filed an emergency petition. The case is part of a broader legal offensive Paxton has launched against what he calls “unlawful political fundraising operations” in the state.
O’Rourke, a prominent Democrat and former presidential candidate, responded forcefully to the ruling, framing it as an attempt by Paxton and other state Republican leaders to silence opposition and stifle efforts aimed at expanding voter access and defending democratic institutions.
“Ken Paxton is trying to shut us down because our volunteers fight for free and fair elections,” O’Rourke said in a statement. “This is the kind of work that threatens the hold Paxton, Abbott, and Trump have on power in Texas. They want to make an example out of us, hoping to intimidate others who dare to fight back.”
Despite the setback, O’Rourke vowed to continue his political activities, including a planned rally in Fort Worth aimed at opposing what he described as Republican efforts to manipulate congressional representation through redistricting.
“I won’t be silenced,” he said. “We’re still standing. We’re still fighting. And I’ll be speaking at our rally to stop this power grab.”
Paxton, known for his combative political style and ongoing legal troubles of his own, was quick to celebrate the court’s decision. In a post on social media, he taunted O’Rourke and doubled down on his accusations.
“Cry more, lib,” Paxton wrote. “You lost in court because you’re breaking the law and deceiving Texans. We absolutely will make an example out of law breakers.”
In a separate statement posted to X (formerly Twitter), Paxton added, “BREAKING: I just defeated Beto O’Rourke in court. We secured a major victory stopping runaway Democrats from taking ‘Beto Bribes’ and preventing deceptive fundraising. They told me to ‘come and take it,’ so I did.”
O’Rourke’s legal team quickly fired back with their own lawsuit, filed in an El Paso district court, accusing Paxton of using the powers of his office to conduct a politically motivated “fishing expedition.” The suit asks the court to halt Paxton’s ongoing investigation into the fundraising practices of Powered by People.
This isn’t the only group under scrutiny. Alongside O’Rourke’s organization, Paxton has launched an investigation into the Texas Majority PAC, another entity accused of financing Democratic lawmakers’ exodus from the state. Details of that probe are still emerging.
As political tensions continue to boil over in Texas, the clash between Paxton and O’Rourke highlights the deep divide between the state’s Republican leadership and its increasingly vocal Democratic challengers. With both sides digging in for what appears to be a prolonged legal and political fight, the outcome could have significant implications for future campaign fundraising rules and partisan power struggles in the Lone Star State.