The Shadow Fund: How Beto O’Rourke’s Nonprofit Found Itself in the Crosshairs of Texas Law

Texas Judge Issues Restraining Order Against Beto O’Rourke Over Fundraising Linked to Democratic Lawmakers’ Walkout

A Texas district court judge on Friday sided with Attorney General Ken Paxton in a legal battle against former Congressman and Democratic gubernatorial candidate Beto O’Rourke and his nonprofit organization, Powered by People. The case centers on allegations that the group unlawfully raised funds to support Texas Democratic legislators who fled the state in 2021 to delay a vote on Republican-backed redistricting legislation.

Tarrant County District Judge Megan Fahey granted a temporary restraining order against O’Rourke and his organization, effectively halting their fundraising efforts linked to the incident. The court found that the group had engaged in fundraising practices that may have violated state laws by financially supporting the lawmakers’ efforts to block legislative proceedings.

According to the judge’s order, O’Rourke’s nonprofit allegedly raised money to cover a range of expenses for the absent legislators, including transportation, lodging, daily fines, and other logistics. The judge stated that these contributions amounted to unlawful use of political funds that could place both the nonprofit and the legislators themselves in legal jeopardy.

“Defendants have and will continue to engage in unlawful fundraising practices and utilization of political funds in a manner that either directly violates or causes Texas Democratic Legislators to violate the law,” Judge Fahey wrote. “Consumers have and continue to suffer irreparable harm through these unlawful acts because they are making political contributions that are being used to fund personal expenses and violate state law.”

The restraining order bars Powered by People from raising or distributing funds related to the lawmakers’ departure. It also prohibits O’Rourke and his team from continuing financial support efforts that the court believes run afoul of Texas election laws.

The ruling followed swiftly on the heels of a petition filed earlier that same day by Paxton’s office. Fahey, who was appointed to the bench in 2019 by Republican Governor Greg Abbott, issued the ruling by Friday evening, signaling a decisive early victory for Paxton in the legal skirmish.

In a statement released after the judge’s order, O’Rourke defended his organization’s actions and accused Paxton of abusing his office for political purposes.

“Ken Paxton is trying to silence us because our volunteers are standing up for free and fair elections,” O’Rourke said. “This is the kind of grassroots work that threatens the grip Paxton, Trump, and Abbott have on power in Texas. They want to make an example of those who resist — to scare others into silence.”

O’Rourke vowed to continue his advocacy and said the court battle would not deter his efforts. He also announced plans to speak at a public rally in Fort Worth, where his organization is campaigning against what he called a GOP “power grab” aimed at redrawing congressional maps to gain partisan advantage.

“They’re trying to take us out of the fight,” he said. “But I’m not backing down.”

Paxton, for his part, celebrated the court’s decision, taking a victory lap on social media and offering a sharp response to O’Rourke’s comments.

“Cry more, lib,” Paxton posted online. “You lost in court because you’re breaking the law and deceiving Texans. We absolutely will make an example out of lawbreakers.”

Paxton also launched a separate investigation into the Texas Majority PAC, another organization accused of contributing funds to support the same group of Democratic lawmakers who fled the state during the 2021 legislative session. Those lawmakers left Texas to prevent a quorum in the House, aiming to block the passage of controversial redistricting bills.

In response to Paxton’s actions, O’Rourke filed his own lawsuit in El Paso district court, accusing the attorney general of launching a politically motivated “fishing expedition.” In the suit, O’Rourke seeks to block Paxton’s investigation into his nonprofit, arguing that it infringes on his constitutional rights and amounts to an abuse of power.

On social media, Paxton called the ruling a “major victory,” writing: “BREAKING: I just defeated Beto O’Rourke in court. We stopped runaway Democrats from taking ‘Beto Bribes’ and putting an end to deceptive fundraising. They told me to ‘come and take it,’ so I did.”

As the legal battle continues, both sides appear to be digging in for a prolonged confrontation. For now, the court’s restraining order marks a significant legal and political setback for O’Rourke’s group, while giving Paxton a high-profile win in his ongoing fight against Democratic-led opposition efforts in Texas.

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