Judge Blocks Fundraising by Beto O’Rourke’s Nonprofit After State Lawsuit

A Texas judge has issued a restraining order against Powered by People, the political nonprofit founded by former Democratic presidential candidate and congressman Beto O’Rourke, in a case that has quickly become the latest flashpoint in the state’s ongoing partisan battles over election laws and political activism.

The Court’s Decision
Late Friday, Tarrant County District Judge Megan Fahey granted a temporary restraining order at the request of Texas Attorney General Ken Paxton. The ruling effectively bars O’Rourke and his organization from raising or distributing money tied to Democratic lawmakers who fled the state during a heated standoff over redistricting legislation.

In her order, Judge Fahey wrote that Powered by People engaged in “unlawful fundraising practices” that risked misleading contributors. According to her findings, donations were used to fund air travel, lodging, and other expenses that may have fallen outside the boundaries of state election laws.

“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 ruling stated.

The Background of the Case
The dispute traces back to 2021, when dozens of Texas Democratic lawmakers fled Austin to prevent Republicans from advancing new redistricting maps and election-related legislation. By leaving the state, Democrats broke quorum in the legislature, temporarily halting GOP efforts to push through bills they argued would weaken voting rights.

During this time, Powered by People allegedly raised funds to support the absent lawmakers by covering the costs of their hotels, transportation, meals, and even fines imposed for their absence. Paxton’s office argued that these expenditures amounted to a misuse of political contributions and violated Texas election codes.

Reactions from Both Sides
Beto O’Rourke quickly condemned the judge’s ruling, describing it as a political maneuver designed to weaken grassroots movements.

“Ken Paxton wants to silence our volunteers because we fight for voting rights and free elections,” O’Rourke said in a statement. “They want to make examples out of those who resist, hoping to scare others into staying quiet. But we are not backing down.”

He confirmed that despite the order, he still plans to attend and speak at a Fort Worth rally organized to protest Republican redistricting efforts.

Attorney General Paxton responded in characteristically sharp terms, applauding the court’s decision. “You lost in court because you’re breaking the law and deceiving Texans,” Paxton wrote on social media. “We absolutely will make an example out of lawbreakers.”

Political and Legal Implications
The restraining order is temporary, but it sets the stage for a broader legal battle that could determine how political nonprofits in Texas can raise and use funds in support of elected officials. Legal experts note that the case touches on a gray area where campaign finance rules, nonprofit regulations, and political organizing overlap.

Critics of Paxton argue that the case is politically motivated, noting that O’Rourke remains one of the most prominent Democrats in Texas. Supporters of Paxton counter that the ruling is a necessary check against the misuse of campaign dollars, regardless of political party.

What Comes Next
The restraining order will remain in place until a future hearing, where both sides are expected to present more evidence. If the court rules against O’Rourke’s organization, Powered by People could face fines, sanctions, or additional restrictions on its operations in Texas.

For now, the legal fight underscores the deep partisan divides in Texas politics, where disputes over voting, redistricting, and campaign finance continue to shape the state’s political landscape.

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