Attorney General Ken Paxton Launches Investigation into Austin's Prop Q Funding Amid Allegations of Illegal Non-Profit Contributions
Attorney General Ken Paxton Launches Investigation into Austin's Prop Q Funding Amid Allegations of Illegal Non-Profit Contributions
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Attorney General Ken Paxton Launches Investigation into Austin's Prop Q Funding Amid Allegations of Illegal Non-Profit Contributions

Matt Mitchell 🕒︎ 2025-10-27

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Attorney General Ken Paxton Launches Investigation into Austin's Prop Q Funding Amid Allegations of Illegal Non-Profit Contributions

Attorney General Ken Paxton has set his sights on a political action committee and other organizations involved with a controversial property tax measure in Austin. Investigations are underway to scrutinize the funding and campaign practices surrounding Proposition Q, commonly known as Prop Q. Paxton's office is looking into allegations that an unlawful fundraising effort by the non-profit Foundation Communities, Inc., may be part of a scheme to influence voters to approve the tax increase on the November 4 ballot. The proposition has become a contentious issue in the state capital, where rising property taxes have been a longstanding concern. An announced $25,000 donation from Foundation Communities to the Love Austin Political Action Committee has caught the attention of the Attorney General's office. The AG's concern hinges on the potential conflict of interest, with Foundation Communities standing to gain from the passage of Prop Q. Paxton issued a Request to Examine (RTE) to probe into the legality of this contribution. "Every non-profit, including Foundation Communities, that is unlawfully contributing to an effort to squeeze more taxes out of Texans must immediately stop," Paxton said. "It's a sham, and it could be illegal. We will determine if there is an illegal scheme where organizations that are funded by the government pour money into raising the tax rate in return for potential future benefits," according to a statement released by the Texas Attorney General's office. This investigation feeds into a larger narrative of Paxton's office taking a hard line against non-profits they suspect of improper political activity. The Fifteenth Court of Appeals recently ruled in Paxton's favor, allowing him to initiate proceedings against another non-profit accused of illegal electioneering. This precedent adds gravity to the current inquiry into Love Austin PAC and could signal a broader crackdown on political funding practices by non-profit organizations in Texas. As the elections draw near, the actions of the Attorney General's office will be closely watched for their impact both on Prop Q's outcome and on Texas's campaigning landscape. Attention in Austin and beyond is now firmly fixed on how this investigation will unfold. With allegations of an "illegal scheme," the onus rests on Paxton's office to untangle the complex web of donations, tax measures, and potential conflicts of interest. As the November election approaches, the fate of Prop Q hangs in the balance, and so does the broader conversation about the role of non-profits in local and state politics. The implications of these investigations reach beyond the immediate controversy, potentially reshaping how non-profits can engage with political action committees and election-related activities in Texas.

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