Investigation Into ActBlue By Attorney General Ken Paxton Uncovers Large Number of Suspicious Donations Made Through Obscured Identities and Untraceable Means; OAG Demands FEC Action

AUSTIN – Texas Attorney General Ken Paxton sent a Petition for Rulemaking to the Federal Election Commission (“FEC”) detailing how suspicious actors appear to be using ActBlue’s political fundraising platform to make a large number of straw political donations.

In December 2023, Attorney General Paxton opened an investigation into ActBlue to determine whether the platform’s operations were compliant with all applicable laws. In August 2024, Attorney General Paxton announced that due to the investigation, ActBlue began requiring donors using credit cards to provide “CVV” codes, a common security measure. But this is not a full solution to the problems that Attorney General Paxton’s team has identified on ActBlue. Namely, it appears that straw donations are systematically being made using false identities, through untraceable payment methods.

Today, Attorney General Paxton transmitted partially redacted findings to the FEC through a Petition for Rulemaking. The petition recommends regulations that would close fundraising loopholes that jeopardize American election integrity. The FEC previously considered rules on the loopholes that the Attorney General has found here. But ActBlue was a vocal opponent of such rules. That opposition is no longer tenable in light of the Attorney General’s findings. If not corrected by the FEC, bad actors can—with trivial ease—illegally funnel foreign money into American elections, exceed political contribution limits, and more.

“Our investigation into ActBlue has uncovered facts indicating that bad actors can illegally interfere in American elections by disguising political donations. It is imperative that the FEC close off the avenues we have identified by which foreign contributions or contributions in excess of legal limits could be unlawfully funneled to political campaigns, bypassing campaign finance regulations and compromising our electoral system,” said Attorney General Paxton. “I am calling on the FEC to immediately begin rulemaking to secure our elections from any criminal actors exploiting these vulnerabilities.”

To read the partially redacted Petition for Rulemaking sent to the FEC, click here.

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