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Texans Decide Texas Questions: Bill Bans Foreign Money in Ballot Fights

HB 1038 would bar foreign nationals from funding Texas ballot measure committees, add donor affirmations, and set penalties. What it does and does not do.

By Ryan Nichols

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Your vote on a school bond. Your vote on a city charter. Your vote on the Texas Constitution. Who paid for the ads telling you how to vote? A new bill says it cannot be money from outside this country.

Plain English summary

On November 10, 2026, State Rep. Shaheen filed House Bill 1038. (FACT, HB 1038 bill history)

It goes after one kind of group: political committees that support or oppose a ballot measure. Not candidates. Measures. Bonds, propositions, amendments.

Under the bill, those committees could not knowingly accept a contribution from a foreign national, directly or indirectly. They could not ask a foreign national to spend money on their behalf. (FACT, HB 1038 introduced text, new Election Code Sec. 253.203(a))

"Foreign national" is written wide. It covers a person who is not a U.S. citizen or national, a foreign government, a foreign political party, a company organized or based in a foreign country, and a U.S. company wholly or mostly owned by any of those. (FACT, new Sec. 253.201(2))

There is a carve out. A U.S. company with foreign owners can still give if the money comes entirely from its U.S. operations and U.S. citizens make the calls, other than setting overall budget amounts. (FACT, new Sec. 253.202(b))

The pass through rule

This is the part with teeth.

A committee also could not take money from anyone who, in the prior four years, knowingly took more than $100,000 from foreign nationals. Paychecks, gifts, and inheritance do not count toward that line. (FACT, new Secs. 253.201(3) and 253.203(a)(2))

Every donor would sign a written affirmation. Not a foreign national. Not over the $100,000 line. (FACT, new Sec. 253.203(b))

Foreign nationals could not direct or take part in anyone's decisions about influencing a ballot measure. They could not solicit others to give, either. (FACT, new Sec. 253.204)

Paperwork with a penalty

A committee would swear, in its treasurer appointment, that no foreign money paid for the early work. Polls. Focus groups. Drafting ballot language. Phone calls. Travel. (FACT, new Sec. 252.0033)

Every campaign finance report would carry an affirmation too. (FACT, new Sec. 254.131)

Committees, and anyone making direct campaign expenditures on a measure, would certify to the Texas Ethics Commission that they have not crossed the $100,000 line and will not for the rest of that year. Failing to certify is a Class B misdemeanor, plus a civil penalty of up to twice the amount. (FACT, new Sec. 253.205)

Enforcement, with guardrails

The attorney general could sue. The state carries the burden of proof. Before any discovery, a judge must find probable cause, or the case is dismissed with prejudice. (FACT, new Sec. 253.206(a) through (c))

A committee caught with illegal money gives it back within 30 days and faces a civil penalty of up to twice the amount. If the committee cannot pay, its directors and officers are personally on the hook. A court could also bar a violator from lobbying work for a period it sets. (FACT, new Sec. 253.206(e) through (h))

The bill protects nonprofit donors, too. Investigators cannot force out the names of lawful donors to a nonprofit unless it is directly tied to a violation. A public servant who leaks a lawful donor's name commits a Class A misdemeanor. (FACT, new Sec. 253.207)

It would take effect September 1, 2027. (FACT, HB 1038 Sec. 7)

Why it matters

Federal law already bars foreign nationals from giving in candidate elections. (FACT, 52 U.S.C. 30121)

But in 2021 the Federal Election Commission concluded that ban does not reach ballot measures. (DOCUMENTED INFERENCE, FEC MUR 7523 file; Ballotpedia)

That leaves the states to close the gap or leave it open. Several have already moved. (DOCUMENTED INFERENCE, Steptoe political law blog)

In East Texas, ballot measures are not abstract. School bonds. Hospital districts. Local option elections. Every one of them asks for your vote, and every one of them has somebody paying for the push.

What Ryan says

My rule is simple. Americans decide American questions. Texans decide Texas questions.

When a bond passes, you pay it. When an amendment passes, you live under it. The money telling you how to vote should come from people with a stake in this country.

I am not against anybody's right to speak. I am against foreign money buying the microphone.

Show me who paid. That is all I am asking. (RYAN STATEMENT)

What this does not prove

It does not prove foreign money has gone into any Texas ballot fight. I have not seen a record of that, and I am not claiming it. (RYAN STATEMENT)

It is filed, not passed. No hearing. No committee vote. No floor vote. (FACT, HB 1038 bill history)

It does not touch candidate races. Federal law already covers those.

The $100,000 pass through rule and the donor affirmations will draw free speech and burden questions. If it passes, courts may get the last word. (DOCUMENTED INFERENCE)

What it does prove

A Texas bill now puts it in writing. A foreign money ban for ballot measure committees, donor affirmations, an attorney general enforcement path, a probable cause screen before discovery, and donor privacy built in.

The text is public. Read it yourself.

The bottom line

Texas ballots belong to Texans.

If you want to tell my neighbors how to vote, do it as an American, with American money.

HB 1038 is a start. Watch it. Watch who stands with it.

Do not threaten anyone. Do not harass anyone. Do not contact anyone in my name. Read it. Share it. Send receipts, evidence, witnesses. Put eyes on the record.

You made it to the end

Most people quit at the headline. You didn’t.

So don’t stop here. Pick one.

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