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[MustReadTexas.com]([link removed]) – [@MustReadTexas]([link removed])
BY: [@MattMackowiak]([link removed])

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**THURSDAY **|** **7/24/2025

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* **TOP NEWS **

**“Texas AG claimed three homes as primary residence. Democrats are being probed for similar issue,” **AP's **Brian Slodysko **— “Texas Attorney Genera**l Ken Paxton** and his wife, **Angela**, are longtime owners of a $1.5 million house in a gated community outside Dallas. In 2015, they snapped up a second home in Austin. Then [another.]([link removed])

The problem: Mortgages signed by the Paxtons contained inaccurate statements declaring that each of those three houses was their primary residence, enabling the now-estranged couple to improperly lock in low interest rates, according to an Associated Press review of public records. The lower rates will save the Paxtons tens of thousands of dollars in payments over the life of the loan, legal experts say.

The records also revealed that the Paxtons collected an impermissible homestead tax break on two of those homes, and they have routinely flouted lending agreements on some of their other properties.

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It is a federal and state crime to knowingly make false statements on mortgage documents. It’s also against the law in Texas to collect a homestead tax break on two separate properties. Violating the terms of a mortgage could allow lenders recourse to seek full payment of a loan, according to legal experts.

**Mortgages have become political fodder**

The mortgage revelations are likely to become [fodder in the Republican primary]([link removed]) for a U.S. Senate seat in which Paxton is seeking to topple the incumbent, **John Cornyn**. The situation is further complicated by the Trump administration’s criminal pursuit of Democrats over similar issues.

President **Donald Trump** has accused two of his political foes — Sen. **Adam Schiff** of California and New York Attorney General **Letitia James** — of committing mortgage fraud, though legal experts say the circumstances are less serious.

The Democrats have long been objects of Trump’s ire for having led various investigations into his conduct as president and as a business executive.

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Paxton, himself, has weighed in on the investigation of James, saying he hoped authorities would look into her conduct. “I hope that if she’s done something wrong, I hope that she’s actually held accountable,” he told supporters last month.

The Justice Department has launched a criminal investigation of James, FBI director **Kash Patel **told Fox News in May. The department received a criminal referral for Schiff last week from the Federal Housing Finance Agency, its director **William Pulte** confirmed in a social media post.

Neither the Justice Department nor the FHFA responded to an inquiry about whether they may investigate Paxton, too.

James’ attorney, **Abbe Lowell**, urged the Trump administration to investigate Paxton instead.

“If this administration was genuinely interested in rooting out fraud, it appears they should stop wasting their time on the baseless and discredited allegations against the New York Attorney General James and turn their attention to Texas,” said Lowell, a prominent Washington attorney whose past clients include **Hunter Biden**,** Ivanka Trump **and** Jared Kushner**.

In a statement, **Marisol Samayoa**, a Schiff spokeswoman, blasted the criminal referral as “a transparent attempt” by Trump “to punish a perceived political foe who is committed to holding him to account.” She added that Schiff disclosed to his lenders that he owned another home that was a principal residence and sought guidance from an attorney.

It is unlikely that Paxton, a staunch Trump ally, will face the same federal scrutiny as James and Schiff. It’s equally doubtful that Paxton will face much legal trouble in Texas: His office is one of the primary agencies tasked with investigating allegations of mortgage fraud.

Ken Paxton and his spokesman did not respond to multiple requests for comment. Angela Paxton, who is a state senator in Texas, did not respond to requests made through her office.

**Three of the Paxtons’ homes are each listed as a primary residence**

Documents reviewed by the AP show the Paxtons hold mortgages on three homes — one in suburban Dallas, two in Austin — that are each listed as their primary residence. The designation comes with a considerable financial upside.

Interest rates on primary homes are significantly lower than those for mortgages on secondary homes or investment properties, saving buyers tens of thousands of dollars — if not more — over the life of a loan.

Making a case against Paxton would require “establishing both that Paxton was aware of the contents of the mortgage document, and also that he was actively aware at the time that he signed it that this was not going to be a primary residence,” said** Jennifer E. Laurin**, a professor at the University of Texas Law School in Austin.

Legal experts say it is possible that the Paxtons’ lenders prepared the documents and that the couple did not carefully review them before signing.

Even if that were the case, some legal experts say that Paxton, as an attorney and Texas’ top law enforcement officer, ought to have known better.

“If he filled out lender documents knowing that they were false, then that is a false statement to obtain a mortgage on favorable terms. That would be actionable,” said **Arif Lawji**, a veteran Texas real estate attorney. “He’s the chief enforcement officer. You have to be accountable for stuff you do that’s wrong.”

**Paxton collected two ‘homestead’ tax breaks**

Low interest rates are not the only perk the Paxtons secured, records show. In 2018, they simultaneously collected homestead property tax breaks on their family’s home in suburban Dallas, as well as on a $1.1 million home in Austin, property records and tax statements show.

A homestead tax break is a property tax reduction that a homeowner is only eligible to collect on one property that is also their primary home.

The suburban Dallas home is where the Paxtons’ family has long resided. It’s where Ken and Angela Paxton are registered to vote. It is located in the state Senate district that Angela Paxton represents in the Legislature, which Ken Paxton held before his election in 2014 to be attorney general. It’s also where Ken Paxton’s Senate campaign website until recently said he lived.

Lawji said the Paxtons’ simultaneous collection of two homestead tax breaks appears to be a more clearcut violation. That is because one must obtain a form and submit it to taxing authorities to receive such a tax break, making it an “intentional act,” he said.

The tax break was worth several thousand dollars, a fact that confounded real estate lawyers. “Why would you try to do all of this,” Lawji said, “when you are the attorney general? That’s a bigger question to me than the money, when you are AG and have to enforce this law.”

**Paxton may have violated mortgage terms by renting properties**

Separately, land records indicate the Paxtons may have violated the terms of at least two mortgages on other houses they own. The mortgage on a home in College Station, Texas, says the property is for the Paxtons’ exclusive use and cannot be rented out. Doing so would be grounds for terminating the mortgage, the document states. The home has been listed for rent on real estate websites on-and-off since at least 2022.

Ken Paxton also holds a $1.2 million mortgage on a “5 bedroom luxury cabin” in Broken Bow, Oklahoma, that is for rent on Airbnb and other short-term rental sites, records show. The property’s mortgage stipulates that it cannot be rented out.

Representatives for Stifel Bank, Cornerstone Home Lending and Benchmark Mortgage, which issued the mortgages in question, did not respond to requests for comment.

**Schiff and James come under fire from GOP**

Paxton’s real estate dealings are in many ways distinct from those of James and Schiff, the Democrats targeted by the Trump administration.

The investigation of James centers on forms she signed in 2023 while helping a niece buy a home in Virginia. One form stated that James intended to occupy the home as her “principal residence.” But in other documents, the New York attorney general made clear she had no intention of living there. An email to the mortgage loan broker two weeks before she signed the documents stated the property “WILL NOT be my primary residence.”

“As I’ve said from the beginning, if prosecutors want to know that truth about Attorney General James’ mortgage applications, we are ready and waiting with the facts,” said Lowell, James’ attorney.

For over a decade, Schiff owned homes in Maryland and California, the state he represents, that were both designated as his primary residence. In 2020, then a congressman, Schiff designated his Maryland property as a second home — a step Paxton has not taken.

**Paxton has faced legal and political challenges**

Paxton’s real estate dealings are not the first time he has drawn scrutiny for his conduct while in office.

Before his election as attorney general, Paxton, then a state senator, admitted in 2014 to violating Texas securities law and paid a fine.

He spent roughly 10 years under state indictment on securities charges while serving as attorney general. The charges [were eventually dropped]([link removed]) in 2024. Other [alleged misdeeds in office]([link removed]) led to his impeachment by Texas’ GOP-controlled House in 2023. He was [acquitted in a trial]([link removed]) by the Senate.

Angela Paxton did not cast a vote in his impeachment trial and [recently filed for divorce,]([link removed]) citing Ken Paxton’s infidelity and other “recent discoveries.” She did not elaborate.

What ultimately unleashed the impeachment push was Paxton’s relationship with Austin real estate developer **Nate Paul**, [who pleaded guilty this year]([link removed]) to one count of making a false statement to a financial institution.

In 2020, eight top aides in Paxton’s office told the FBI they were concerned the state’s top law enforcement official was misusing his office to help Paul over the developer’s unproven claims about an elaborate conspiracy to steal $200 million of his properties.

The House impeachment managers accused Paxton of attempting to interfere in foreclosure lawsuits and issuing legal opinions to benefit Paul. They also alleged that Paul employed a woman with whom Paxton had an affair in exchange for legal help and that the developer paid for expensive renovations to the attorney general’s home in Austin.

That would be the same house that he declared in mortgage documents was his third primary residence." [AP]([link removed])

**“FEMA chief rejects criticism, calls Texas floods response ‘a model’ for dealing with disaster,” **AP's **Gabriela Aoun Anguiera **— “The acting administrator of the Federal Emergency Management Agency is pushing back on criticisms of the federal response to the central Texas floods that [killed at least 136 people earlier this month]([link removed]).

“I can’t see anything we did wrong,” **David Richardson** told a House panel of the Committee on Transportation and Infrastructure on Wednesday. He called the relationship between state and federal agencies “a model for how disasters should be handled.”

Lawmakers used the hearing about improvements to FEMA disaster response to address reports that FEMA support was impaired by bureaucratic delays that slowed the deployment of urban search and rescue teams and left the agency’s call centers unstaffed, which Richardson denied. The response “brought the maximum amount of capability to bear in Texas at the right time and the right place,” he said.

Richardson’s appearance came after a wave of criticism and fallout over the response, including the resignation Monday of FEMA’s urban search and rescue leader. President **Donald Trump **and Homeland Security Secretary **Kristi Noem** have touted the robust federal support for Texas despite their [past support for eliminating FEMA]([link removed]).

**Reports of delays on the ground denied**

The acting administrator denied reports that FEMA urban [search-and-rescue]([link removed]) teams were delayed over 72 hours because of a new rule imposed by Noem that she must personally approve any contract of $100,000 or more. Richardson said a Texas-based FEMA task force was on the ground on July 4, along with other Homeland Security assets like the Coast Guard and Customs and Border Protection, and that additional support came within “24 hours” of being requested.

Rep. **Greg Stanton**, D-Ariz., pushed back on FEMA’s readiness, asking why more of the 28 FEMA urban search-and-rescue teams located around the country were not on standby ahead of receiving a request from the state of Texas. “It haunts me that we could have had more urban search and rescue pre-positioned in place,” said Stanton. “That was a choice.”

The leader of FEMA’s urban search-and-rescue effort, **Ken Pagurek**, expressed frustration with the delays to colleagues before resigning Monday, according to CNN. In response to Pagurek’s resignation, a DHS spokesperson told The Associated Press, “It is laughable that a career public employee, who claims to serve the American people, would choose to resign over our refusal to hastily approve a six-figure deployment contract without basic financial oversight.”

The Texas Division of Emergency Management did not respond to a request for comment on whether search-and-rescue efforts were impacted by delayed deployment of the FEMA teams.

Richardson also denied a report from The New York Times that 84% of calls to FEMA went unanswered on July 7, three days after the July 4 floods, because Noem let lapse contract renewals with outside call centers. The contracts were renewed July 10, according to The Times.

“The vast majority of phone calls were answered. There was never a lapse in the contract,” said Richardson, echoing Noem’s statements that the report was “fake news.”

Richardson defended his absence from the ground efforts in Texas, saying he worked from Washington, D.C., “to kick down the doors of bureaucracy” and denying suggestions that Trump or Noem told him to stand down. He did not visit Texas until July 12.” [AP]([link removed])

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* **STATE GOVERNMENT **

**“Texas Attorney General Ken Paxton is handing more of his office’s work to costly private lawyers,” **Texas Tribune / Pro Publica's **Zach Despart **— “One day in late May 2024, lawyer** Zina Bash** spent 6 1/2 hours working on a case against Facebook parent company Meta on behalf of the state of Texas. She reviewed draft legal filings. She participated in a court-ordered mediation session and then discussed the outcome with state Attorney General **Ken Paxton**.

In her previous job as senior counsel on Paxton’s leadership team, that labor would have cost Texas taxpayers $641.

But Bash had moved to private practice. Paxton hired her firm to work on the Meta case, allowing her to bill $3,780 an hour, so that day of work will cost taxpayers $24,570.

In the past five years, Paxton has grown increasingly reliant on pricey private lawyers to argue cases on behalf of the state, rather than the hundreds of attorneys who work within his office, an investigation by The Texas Tribune and ProPublica found. These are often attorneys, like Bash, with whom Paxton has personal or political ties.

In addition to Bash, one such contract went to** Tony Buzbee**, the trial lawyer who successfully defended Paxton during his 2023 impeachment trial on corruption charges. Three other contracts went to firms whose senior attorneys have donated to Paxton’s political campaigns. Despite these connections and what experts say are potential conflicts of interest, Paxton does not appear to have recused himself from the selection process. Although he is not required to by law, this raises a concern about appearing improper, experts who study attorneys general said.

Paxton appears to have also outsourced cases more frequently than his predecessors, available records show. And he’s inked the kind of contingent-fee contracts, in which firms receive a share of a settlement if they win, far more often than the attorneys general in other large states, including California, New York and Pennsylvania. Since 2015, the New York and California attorneys general have awarded zero contingent-fee contracts; Pennsylvania’s has signed one. During that period, Paxton’s office approved 13.

One of those was with Bash’s firm, Chicago-based Keller Postman, at the time known as Keller Lenkner, which she joined as partner in February 2021 after resigning from her job at the attorney general’s office. Paxton had signed a contract with the company two months earlier to investigate Google for deceptive business practices and violations of antitrust law. A little more than a year later, Bash’s firm won a state contract to work on the Meta litigation, alleging its facial recognition software violated Texans’ privacy. This time, Bash was the co-lead counsel.

Meta, which called the [lawsuit]([link removed]) meritless, settled the case for $1.4 billion in the summer of 2024. It was a windfall for Keller Postman. The firm billed $97 million, the largest fee charged by outside counsel under Paxton’s tenure. Bash’s work alone accounted for $3.6 million of that total.

Bash, a former U.S. Supreme Court clerk, said in a statement she is honored the attorney general’s office partnered with Keller Postman based on the firm’s “first-rate attorneys and extensive experience.”

“We have a record of taking on the most significant litigation in the country against the most powerful defendants in the world,” Bash said.

Keller Postman did not respond to a request for comment.

There is little to stop Paxton, or any other occupant of his office, from handing these contracts out. The attorney general can award them without seeking bids from other law firms or asking anyone’s permission.

Asked to provide competitive-bid documents for the contingent-fee contracts it has awarded, the attorney general’s office said it had none because state law “exempts the OAG from having to do all of the solicitation steps when hiring outside counsel.”

Given the high-profile nature of representing an attorney general and the potential for a big payday, many qualified firms would be eager to compete for this work, said **Paul Nolette**, a professor of political science at Marquette University who studies attorneys general.

“I’d be curious to know what the justification is for this not going on the open market,” Nolette said.

Paxton declined interview requests for this story. He has publicly defended the practice of hiring outside law firms, arguing that his office lacks the resources in-house to take on massive corporations like tech companies and pharmaceutical manufacturers.

“These parties have practically unlimited resources that would swamp most legal teams and delay effective enforcement,” Paxton told the Senate finance committee during a budget hearing in January.

A spokesperson for Paxton said in a statement that the outside lawyers hired by the office are some of the best in the nation. With the contingent-fee settlements to date, more than $2 billion, the state “could not have gotten a better return on its investment,” the statement said.

**Chris Toth**, former executive director of the National Association of Attorneys General, questioned why so much extra help is needed. Outside counsel is appropriate for small states, he said, that “only have so many lawyers with so many levels of expertise.”

The Texas attorney general’s office, one of the largest in the country, has more than 700 attorneys.

“Large states typically don’t hire outside counsel,” Toth said. “They should have the people in-house that should be able to go toe-to-toe with the best attorneys that are out there.”

**A troubled history**

When a Texas attorney general previously made a practice of giving lucrative contracts to private counsel, it didn’t end well.

**Dan Morales** was the last Democrat to hold the office. He became embroiled in scandal after he used outside firms to help secure a $17 billion settlement in Big Tobacco litigation in 1998.

Republicans, including then-Gov. George W. Bush, blasted the $3.2 billion payout to the outside lawyers as exorbitant. Their attacks grew more intense when Morales sought to steer $500 million of that sum to a lawyer, a personal friend, who did very little work on the case. Morales pleaded guilty in 2003 to related federal corruption charges. He served 3 1/2 years behind bars.

**John Cornyn**, the Republican who succeeded Morales in 1999, criticized his predecessor’s handling of the tobacco case during his campaign for the office. In an interview for this story, Cornyn said he never hired outside counsel as attorney general because he focused on recruiting talented in-house lawyers that he felt could handle all the office’s cases.

Paxton is challenging Cornyn, now a four-term U.S. senator, in next year’s Republican primary.

Texas Gov.** Greg Abbott**, the Republican who led the office after Cornyn, appears to have rarely used private lawyers. The attorney general’s office was able to produce records for only part of Abbott’s 12-year term because state law allows the files to be deleted after so many years. The office signed nine outside counsel contracts between 2010 and 2014, all pro bono or for hourly rates rather than contingency. Abbott did not respond to an interview request.

Paxton also seldom outsourced cases during his first five years in office. Through 2019, he awarded only nine outside counsel contracts, all pro bono or hourly rate. The most expensive contract capped fees at $500,000 — far less than $143 million the state paid to the two firms, including Bash’s, that handled the Meta case.

He changed course in 2020.

That summer, the attorney general’s office was gearing up to file its first case against Google. It related to allegations that the company monopolized the online advertising market, raising costs for advertisers, who increased the price of their products for average consumers as a result. Paxton initially had no plans to hire outside counsel for the litigation, three former deputy attorneys general told the Tribune and ProPublica.

But before the case was filed, the attorney general’s office was thrown into upheaval. At the end of September, seven of Paxton’s senior advisers reported him to the FBI, concerned his relationship with an Austin real estate investor had crossed the line into bribery and corruption. State House members would later impeach Paxton on counts related to the accusations; state senators eventually acquitted him. The federal criminal investigation into Paxton did not result in any criminal charges.

Over fall 2020, each of the lawyers in his office who had accused Paxton of wrongdoing quit or was fired. That included **Darren McCarty**, the head of civil litigation who was supposed to lead the Google litigation before he reported his boss to the FBI. He resigned on Oct. 26.

Less than two months later, on Dec. 16, Paxton signed contracts with The Lanier Law Firm and Keller Postman to investigate Google. They filed the lawsuit against the tech giant in federal court the same day.

Paxton replaced the lawyers who complained to the authorities. The staffing of the antitrust and consumer protection divisions, which would have handled these cases, remained constant at more than 80 employees in the following years. Yet Paxton continued to outsource lawsuits against large corporations to private lawyers.

Under Keller Postman’s contract, the firm would be paid only if it secured a settlement or won at trial. These contingent-fee cases have the potential to be far more profitable for the outside firms than those in which they bill at a regular hourly rate. In a successful case, the contracts say that firms are paid either a percentage of a settlement or the sum of hours billed by the firm times four, whichever is less.

In the Meta case, Keller Postman was entitled to 11% of the state’s settlement, a share that totaled $154 million. But because the firm’s fees and expenses totaled $97 million, it billed that sum.

In multiple legislative sessions, Paxton has testified that outsourcing was the only way his office could stand toe-to-toe with corporate titans.

If Paxton has a shortage of qualified in-house attorneys, Cornyn told the newsrooms, that’s because of the damage the whistleblower scandal did to the reputation of the attorney general’s office as a home for ambitious young lawyers.

“He’s a victim of his own malfeasance and mismanagement because people did not want to work for him anymore,” Cornyn said. “And if you run off your best lawyers because you engage in questionable ethical conduct, then you’re left with very few options. But this shouldn’t be a way to reward bad behavior.”

Former Arizona Attorney General **Terry Goddard** said he was surprised Paxton began hiring contingent-fee outside lawyers only after the scandal, since those contracts, with their potential for high profits, are tougher to ethically defend.

“I would have thought it would have been the other way around — that he got more careful after he got the whistle blown on him,” said Goddard, a Democrat. “But it looked like he got more reckless.”

**Connections to contract recipients**

Paxton’s style of procurement also benefited Buzbee, the man who successfully defended him during his impeachment trial, which stemmed from allegations the whistleblowers raised.

The attorney general chose to skip most of the proceedings, so for the 10 days of trial in the Texas Senate, his most vociferous advocate was the loquacious Buzbee. The pair sat side by side when the attorney general did attend.

A little more than a year later, Paxton hired The Buzbee Law Firm to pursue an antitrust suit against the investment firms BlackRock, State Street and Vanguard that accuses the companies of manipulating the coal market in a way that allegedly increased electricity prices for Texans. The firms deny wrongdoing.

Buzbee is a successful litigator and one of Houston’s most famous plaintiffs’ attorneys. Among other victories, he won settlements for victims of the Deepwater Horizon oil spill and $73 million for Gulf of Mexico oil drillers in a 2001 antitrust case. But he’s known primarily for personal injury work, not antitrust litigation.

His firm, one of two hired for this latest attorney general’s office contingent-fee case, could collect 10% of any judgment or settlement. The case is in its early stages, though the Trump administration in May filed a brief in the case in support of Texas.

Buzbee downplayed the potential for a big payday in an email to the newsrooms and argued there is no buddy system at play, noting he believed other law firms also interviewed with Paxton’s office for the job. (The attorney general’s office did not confirm this.) He said his firm has to pay for significant expenses up front, without any guarantee of payment.

“The current arrangement may be a good deal for other lawyers, but in all candor, it’s not for me,” Buzbee said, adding that his normal hourly rate is $2,250. “Frankly, the only reason I’m even doing it is that I am proud to represent the state in such a landmark case.”

The connections between Paxton and the lawyers he has hired also extend to other firms. The attorney general’s office hired the firm Norton Rose Fulbright, one of the largest in the country with more than 3,000 lawyers on staff, to work on separate Google cases for the state, focusing on consumer protection allegations.

The attorney general’s office has awarded three contracts to the firm since 2022 for cases against the tech giant. Three times during that period, **Joseph Graham**, the firm’s lead counsel on the Google litigation, contributed $5,000 to Paxton’s campaign for attorney general. Twice, the donations came within 16 days of Graham signing one of the firm’s contracts with the attorney general.

The firm and its attorneys have contributed $39,500 to Paxton’s campaign since he took office. Neither Graham nor Norton Rose Fulbright responded to requests for comment.

**Mark Lanier**, founder of The Lanier Law Firm, which the state hired to work on a separate Google case, is a large donor to Texas elected officials. He has contributed $31,000 to Paxton’s campaigns since 2015. The largest contribution, for $25,000, came six months after Lanier signed his firm’s Google contract.

The Lanier contract is slightly different from the others the attorney general’s office awarded, in that the firm’s payment is partially based on a basic hourly rate but it could also be paid more if it wins the case, as in the contingent-fee model. Lanier noted in an emailed statement to the newsrooms that he took a reduced fee on this case and maintained that the attorney general’s office needed the kind of firepower his team can bring against an opponent like Google.

“The Texas AG office and its lawyers are good, but specialists are needed in a war like this. And it is a war,” Lanier wrote. “It would be irresponsible to pursue Google on behalf of Texans without bring[ing] the fullest resources you can.”

A competitive, open process for awarding contracts can be a strong defense against accusations of favoritism, Goddard said.

Unlike some other states, Texas does not require these contracts be put out to competitive bid.

Florida, for example, has one of the most robust laws in the country for procuring outside counsel, requiring the attorney general to explain in writing why a contingent-fee contract is necessary. It also mandates most contracts be put out to competitive bid and caps contingent-fee payouts at $50 million. Texas has no such cap.

It also has virtually no method for state lawmakers to truly supervise this kind of practice. State law mandates only that the attorney general notify the Legislature when his office awards a contingent-fee contract, and certify that no in-house lawyers or private attorneys at an hourly rate can handle the task. Paxton has done so in boilerplate two-page letters that all say outside attorneys are needed because of the “scope and enormity” of the cases.

If lawmakers are concerned about these contracts, there is no mechanism for them to challenge Paxton’s determination that private counsel is needed.

Having lawyers bid for work would eliminate the appearance of impropriety that hangs over Paxton’s hires, Goddard said.

“A couple look like paybacks, which is extraordinarily improper, in other words to award a contract to someone who’s a major contributor or has recently left your office,” he said. “All of those would not be allowed in our state.”

Officials in other states have said they can still secure big wins for their constituents without relying on private firms.

California, for example, reached a $93 million settlement with Google in 2023 over [claims]([link removed]) that the company was clandestinely tracking users’ locations. A year earlier, in a case with similar allegations, Oregon and Nebraska led a 40-state coalition that won a $392 million settlement against the company. Texas was not part of this suit.

The latter agreement required Google to make new privacy disclosures to consumers, restricted its ability to share users’ location information with advertisers and required the company to prepare an annual report detailing how it was complying with the settlement terms.

**Doug Peterson**, the Republican attorney general of Nebraska at the time, said negotiating the financial penalty — Nebraska’s share was $11.9 million — was a secondary goal of the settlement.

“The most important thing we’re trying to do is to stop the bad behavior,” Peterson said.

McCarty, one of the attorney general employees who blew the whistle on Paxton, said private lawyers can be talented, but they have an incentive to fixate on the financial portion of settlements — which is tied to their compensation — rather than enforcement provisions that may best protect a state’s residents.

“Government enforcers, especially in the antitrust context, can focus on more effective solutions,” McCarty said.

Norton Rose Fulbright has yet to send its final billing records to the attorney general’s office but is likely to be rewarded handsomely. The firm helped the state secure a $1.38 billion settlement with Google in May. Google spokesperson **José Castañeda **said the Texas settlement, which has not been finalized, will contain no new restrictions on the company’s practices.

Under the terms of its contracts, the firm’s fees could exceed $350 million." [Texas Tribune]([link removed])

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* **LOCAL GOVERNMENT **

**“Kerrville council weighs tax hike to help pay for flood recovery,” **San Antonio Express-News'** Ricardo Delgado **— “As Kerrville continues the recovery process from the catastrophic July 4 floods, city officials are considering the possibility of raising taxes to help pay for repairs and cleanup work.

At Kerrville City Council's Tuesday night meeting, city leaders said that while they'd prefer not to raise property tax on residents, the scope of the disaster might make a short-term tax hike necessary to fund recovery efforts.

The July 4 flooding along the Guadalupe River killed at least 108 people in Kerr County, with two people still missing, state officials said this week. The bodies of another nine victims of the Guadalupe River flooding were recovered in neighboring Kendall County.

The flooding damaged thousands of structures in Kerr County, along with roads, parks and other infrastructure.

Texas law typically prevents a city or other taxing entity from raising property taxes by more than 3.5% per year, without seeking approval from voters. However, in the event of a disaster declaration, state law allows for a one-time property tax increase of up to 8%.

The City Council on Tuesday voted to ask Kerr County Tax Assessor-Collector **Bob Reeves** to calculate the amount of revenue the city could generate through an 8% increase to the maintenance and operations tax rate.

Mayor **Joe Herring Jr**. said the council hasn't yet decided on a tax increase, but is gathering information as it works to "process the cost to this community."

"I don't want my taxes to go up. Also, I didn't want a flood to come down the river and kill 120 people," Herring said. "We're trying to figure out how to pay and how to rebuild critical infrastructure in our community... if evidence suggests it's the most prudent course for our community, I'll pay more taxes next year. We all will (be) pitching in to help rebuild our community. “ [SAEN]([link removed]) ($)

**“Dallas risks lawsuit if it doesn’t repeal ordinances that run afoul of ‘Death Star’ law,” **Dallas Morning News'** Suryatapa Chakraborty **— “The Texas Public Policy Foundation, an influential conservative think tank, notified Dallas on Wednesday it needs to repeal or amend local ordinances not covered by state law — or risk being sued.

The notice, written on behalf of three residents, **Haley Kyles**, **Tamara Brown **and **Daniel Rodriquez**, said ordinances that have been preempted by the so-called “Death Star” law have caused them harm. The notice comes days after an [appeals court overruled a decision last week]([link removed]) that held the 2023 law that which prohibits cities and counties from adopting agricultural, financial, natural resources and labor policies that weren’t covered by state law was unconstitutional.

“All Texans deserve the freedom to live and work without being micromanaged by their city government,” said **Matthew Chiarizio**, a TPPF senior attorney. “The Texas Regulatory Consistency Act was passed to stop exactly this kind of local overreach — and TPPF stands ready to defend Texans’ liberty when cities like Dallas refuse to follow the law.”

The city of Dallas declined to comment Wednesday afternoon due to the pending notice of claims.

Dubbed the [“Death Star” law]([link removed]), the legislation was widely seen as a successful attempt by the Texas Legislature to limit local powers in major urban areas.

During the last legislative session, city officials sent Rep. **Rafael Anchia**, D-Dallas, a list of 133 ordinances they say would be on the chopping block. But the city never took action.

Instead, the law was stalled by a district court two days before it was set to take effect, after Houston, San Antonio and El Paso sued the state. Dallas never joined the fight, though it did send a legal brief in support of other cities. In it, the city reiterated its status as a “home-rule” municipality, which gives it the ability to create a charter of rules to govern itself.

In their ruling, appeals court judges said the cities had failed to “establish a concrete and particularized injury” if the law were active.

“(The cities) allege that the Act is unconstitutional on its face and that they will have to review their charters, repeal preempted regulations, and suffer other such generalized injuries if forced to comply with its terms,” the opinion read, adding that without an actual local regulation that’s impacted by the law, there was no concrete dispute the court needed to resolve.

The 133 ordinances include regulations about minimum wages, water conservation, sexually oriented businesses, equal opportunity employment and anti-discrimination provisions. Ordinances in Dallas and Austin that required construction workers to get water breaks were also preempted by the Death Star bill, leading to outcry that reached [the U.S. Capitol]([link removed])." [DMN]([link removed]) ($)

**“Dallas County jail inmate dies, another inmate faces murder charge,” **Dallas Morning News'** Ricardo Delgado **— “One Dallas County jail inmate died on July 13, and another is facing a murder charge, according to a Thursday news release from the Dallas County sheriff’s office.

**Quinnetta Brinkley**, 21, died and **Daisy Zuniga**, 26, is facing a murder charge in connection to the death, according to the release.

The release said four inmates were found in medical distress by detention service officers and taken to Parkland Hospital for a possible overdose." [DMN]([link removed]) ($)

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* **2026 **

**“Rep. Giovanni Capriglione, first Texas DOGE chair, will not seek reelection,” **Texas Tribune's** Ayden Runnels **— “State Rep. **Giovanni Capriglione**, the Southlake Republican who championed tech-oriented bills, announced his retirement from the Texas House on Tuesday, the latest in a slew of legislative shakeups ahead of the 2026 elections.

Capriglione, who said in June he would seek [reelection for the District 98 sea]([link removed])t, reversed that decision in a statement posted on social media and his [campaign website]([link removed]). He said he would serve out the remainder of his seventh term but did not indicate what he will pursue after office.

“When I first ran, I had a clear purpose: go down to Austin, work hard, and fight for the principles and values that make Texas strong,” Capriglione said. “And while I’ve given this work everything I have, I also feel in my heart that I’ve accomplished what I set out to do. It’s time for a new chapter.”

Capriglione is the chair of both the Delivery of Government Efficiency Committee that was [established earlier]([link removed]) in the year. Capriglione’s focus on technology through his time in the Legislature was highlighted by his spot as chair of the state’s Innovation and Technology Caucus; authoring Texas’ Data Privacy and Security Act in 2023; and helping the establishment of a Texas Cyber Command, one of Gov. **Greg Abbott’s** 2025 emergency priorities, through the DOGE Committee as [House Bill 150]([link removed])’s author.

Keller Mayor** Armin Mizani **announced on Wednesday that he would be running to succeed Capriglione and alongside a list of endorsements, including some of the lower chamber’s far-right representatives. …

Capriglione’s exit is the latest in a series of moves from state lawmakers shifting seats, with many seeking other offices. In addition to Hancock’s resignation from the state Senate, Rep.** Tony Tinderholt**, R-Arlington, announced on the last day of the regular session that [he would retire]([link removed]) and is now running for a Tarrant County Commissioner seat. Sen.** Robert Nichols**, R-Jacksonville, also said he would [not seek reelection]([link removed]), which was quickly followed by Rep. **Trent Ashby**, R-Lufkin, who stated he would seek the seat." [Texas Tribune]([link removed])

**“Tejano singer Bobby Pulido forms exploratory committee for South Texas congressional bid,” **Texas Tribune's** Gabby Birenbaum **— “Tejano superstar **Bobby Pulido** is forming an exploratory committee for a congressional bid in South Texas as he considers challenging Rep. **Monica De La Cruz,** R-Edinburg.

Pulido, a Democrat and Edinburg native, is a titan of the music genre that has its roots in South Texas. Thirty years after the release of his debut album, he plans to both retire from music and make a decision about pivoting to politics by the end of the year.

Under the current map, De La Cruz is the [only]([link removed]) Texas Republican that Democrats are targeting in 2026. …

Spanning from Hidalgo County along the border to Guadalupe County on the edge of San Antonio, Texas’ 15th Congressional District elected De La Cruz, its first Republican representative, in 2022. Her margin of victory swelled from 8 percentage points that year to 14 in 2024, and both President **Donald Trump** and Sen. **Ted Cruz** won the district by over 10 points.

As Democrats search for answers in South Texas after a disastrous showing in 2024, Pulido, a well-known figure in the region, thinks he could help depolarize the electorate and win back some of the recent GOP converts.

​​”I'm proud to be from the [Rio Grande Valley],” he said. “And I'm proud to say that in the RGV, people vote for the person, not the party.”" [Texas Tribune]([link removed])

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* **TEXANS IN DC **

“**Graham, Cornyn call for special counsel in Obama case,**” The Hill's** Al Weaver** -- "A pair of top Senate Republicans called for a special counsel to be appointed Thursday to probe whether former President Obama aided an effort to undermine President Trump’s 2016 White House bid.

Sens. **Lindsey Graham** (R-S.C.) and **John Cornyn** (R-Texas) pressed for the appointment, saying they want answers about how Obama and his administration “manipulated” matters in the hopes of a **Hillary Clinton** victory in 2016. …

The call came a day after Director of National Intelligence **Tulsi Gabbard** released a new document [casting doubts]([link removed]) on Russian President **Vladimir Putin’s** desire to aid Trump in the contest, though it backed up the argument that Russia wanted to interfere in the election writ large.

The document was part of a House Intelligence Committee report stemming from when Republicans controlled the chamber, and it was classified until Gabbard released it. Although it does not dispute that Moscow interfered in the election, it [sheds light]([link removed]) on the Obama administration’s handling of Russia’s activity at the time. …

“As we have supported in the past, appointing an independent special counsel would do the country a tremendous service in this case,” Cornyn said in a statement. “With every piece of information that gets released, it becomes more evident that the entire Russia collusion hoax was created by the Obama Administration to subvert the will of the American people.”

“Democrats and the liberal media have been out to get President Trump since 2016,” he continued. “There must be an immediate investigation of what we believe to be an unprecedented and clear abuse of power by a U.S. presidential administration.”" [The Hill]([link removed])

———————————————————————————

* **TRUMP ADMINISTRATION **

“**US government is building a 5,000-person immigrant detention camp in west Texas,**” via AP -- "The U.S. government is building an immense 5,000-person detention camp in west Texas, government contract announcements said, sharply increasing the Trump administration’s ability to hold detained immigrants amid its ever-growing mass deportation efforts.

A Defense Department contract announcement on Monday said Acquisition Logistics, a Virginia-based firm, had been awarded $232 million in Army funds to build the facility, which would be used for single immigrant adults.

Procurement documents called it a “soft sided facility,” a phrase often used for tent camps. …

The announcement said the new facility would be built in El Paso, which is home to Ft. Bliss, an Army base that stretches across parts of Texas and New Mexico.

President **Donald Trump** recently [signed a law]([link removed]) setting aside $170 billion on border and immigration enforcement, including $45 billion for detention, even as the number of illegal border crossings has plunged. ICE will see its funding grow by $76.5 billion over five years, nearly 10 times its current annual budget.

Trump has [vowed to deport]([link removed]) millions of immigrants living illegally in the U.S." [AP]([link removed])

———————————————————————————

* **BUSINESS NEWS **

“**Summer travel fails to lift the bottom line for both American and Southwest,**” via San Antonio Express-News -- "Dallas-based [Southwest Airlines]([link removed]) reported second-quarter earnings that topped analysts’ expectations but said it expects key revenue indicators to be essentially flat in the next three months ― although “domestic leisure travel stabilized during second quarter 2025, with recent trends showing signs of improvement.”

Fort Worth-based [American Airlines]([link removed]) reported record second-quarter revenue but said it’s seen “domestic consumer weakness” in recent weeks. Much of that was driven by economic uncertainty in the spring with tariff negotiations along with international turmoil, it said.

“July has been tough, really hit hard by the uncertainty during the primary booking period,” American Airlines CEO **Robert Isom** said Thursday. “There’s a lot good reason to have a lot of optimism for some of the trends that we’re seeing going from July into August and September and into the fourth quarter, but we’ve had a lot of volatility in the business so far.”

Southwest and American are the No. 1 and No. 2 airlines, respectively, at Austin-Bergstrom International Airport and San Antonio International Airport. They’re also the biggest domestic travel carriers, relying less on lucrative and highly profitable international flights than other major airlines. The strongest regions for both are along the Sunbelt in the southern U.S. from Florida to California.

Summer is typically the strongest stretch for all airlines as warm weather and school-free children lead to airports full of vacationers. Domestic travelers buoyed airlines during the COVID-19 pandemic, as international travel restrictions made Florida, Texas and Arizona popular spots to visit.

But domestic travel was the weak spot for American in the second quarter, down 2% year over year even after the company boosted capacity by 4.8%. International travel was up 2.7% while capacity was flat.

It reported second-quarter revenue of $14.4 billion, up slightly from a year ago. Net income was $599 million, down from $717 million last year.

While topping expectations, Southwest’s earnings of $213 million were down 42% from a year ago. Meanwhile, revenue fell 1.5% to $7.24 billion.

The carrier, which introduced sweeping changes to its business model during the period, also indicated its fare strategy overhaul briefly ran into trouble after launching new “basic” economy tickets." [SAEN]([link removed]) ($)

“**Big cruise shakeup: Major ship pulling out of Galveston in 2027,**” KHOU's **Jaime E. Galvan** -- "Carnival Cruise Line is making waves with a major update to its 2027 cruise lineup: the [Carnival Dream will set sail from Galveston]([link removed]) for the last time in May 2027 before returning to New Orleans as its new homeport.

The move is part of Carnival’s expanded deployment schedule through spring 2028, aimed at offering cruisers more vacation variety and regional options. The Carnival Dream, which accommodates more than 4,600 guests, will join the Carnival Liberty as the second ship sailing year-round from the Port of New Orleans.

“More capacity with a larger ship means more tourism activity for Port NOLA and the region, where we’ve enjoyed a successful partnership for over three decades,” **Christine Duffy**, president of Carnival Cruise Line, said.

Before relocating, Carnival Dream will offer two final cruises from Galveston in May 2027:

> A Western Caribbean cruise featuring stops in Belize, Cozumel, and Isla Tropicale
> A Bahamas itinerary visiting Celebration Key, Key West, and Nassau

After that, the ship returns to New Orleans on May 16, 2027, for the first time since 2019. From there, it will begin a new run of four- and five-day voyages to Mexico." [KHOU]([link removed])


**EXTRA POINTS**

Yesterday 's Texas sports scores:
> MLB: **Texas **2, Detroit 1
> MLB: **Houston** 4, Arizona 3

Today's Texas sports schedule:
> 7:05pm: MLB: Detroit at **Texas**
> 7:10pm: MLB: Oakland at **Houston**

Tomorrow's Texas sports schedule:
> 7:05pm: MLB: Atlanta at **Texas**
> 7:10pm: MLB: Oakland at **Houston**
> 7:30pm: MLS: NYC FC at** Dallas **(Apple TV)
> 7:30pm: MLS: LA Galaxy at **Houston **(Apple TV)
> 9pm: WNBA: **Dallas **at Golden State (ION)

**DALLAS COWBOYS**: "Cowboys camp observations: Malik Hooker’s one-handed INT, CeeDee Lamb’s near scuffle, more" [DMN]([link removed]) ($)

**HOUSTON TEXANS**: "Houston Texans training camp Day 2 observations: Jalen Pitre shows he's back and maybe better" [Hou Chron]([link removed]) ($)

**HOUSTON ASTROS**: "Walker’s clutch hit in the ninth lifts Astros over Diamondbacks for sweep" [AP]([link removed])

**TEXAS RANGERS**: "Bloop hit gives the Rangers and Jon Gray a 2-1 victory over the Athletics" [AP]([link removed])

**TEXAS RANGERS**: "Rangers’ Nathan Eovaldi scheduled to make first second-half start Friday against Braves" [AP]([link removed])

**MLS ALL STAR GAME**: "MLS, playing without Messi, beats Liga MX 3-1 in All-Star Game" [AP]([link removed])

**TEXAS MEN'S BASKETBALL**: "Texas basketball schedule: Full nonconference slate announced" [AAS]([link removed]) ($)

**TEXAS A&M ATHLETICS**: "Texas A&M’s collie mascot Reveille X has eye removed after glaucoma diagnosis" [AP]([link removed])


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