I hadn’t intended to use so much of this week talking about Texas elections, but a lot of news is dropping and the primary looms next week, so let’s tuck in:
After mainly remaining on the sidelines ahead of the primary, casino companies seeking to turn Texas into a piggy bank are spending big to back the current House Speaker and his allies.
Chief among these out-of-state interlopers is Las Vegas Sands, giving through its “Texas” Sands PAC. The largest beneficiary of Sands’ money in the latest filing period is embattled House Speaker Dade Phelan (R-Beaumont).
The casino outfit gave $200,000 to the Speaker, his second-largest donation in the latest filing period. Another gambling behemoth, Penn Entertainment Inc., gave Phelan $20,000. The Choctaw Nation of Oklahoma donated $10,000.
Gambling special interests have long targeted Texas but have been rebuffed for decades following failed promises of the Texas Lottery. During the 2023 legislative session, the Texas House advanced gambling measures that the Texas Senate ignored.
In this latest period, Sands gave $1.8 million to Texas politicians. This money went exclusively to members of the Texas House, with Republicans taking $1.34 million and Democrats $457,500. This is potentially a preview of a deluge of money that big gambling may spend in the lead-up to the 2025 legislative session.
State Rep. John Kuempel (R-Seguin), a key proponent of growing the gambling footprint in Texas, received the second-highest total from Sands at $110,000. Like Phelan, Keumpel finds himself up against a field of challengers, including Alan Schoolcraft who enjoys the endorsement of Gov. Greg Abbott and heavy financial backing.
Texas Republican Party Chairman Matt Rinaldi says the Texas Health and Human Services Commission (HHSC) has paid a company House Speaker Dade Phelan manages three times the market value.
On February 16, 2023, an exclusive Texas Scorecard investigative report examined a lease between HHSC and 3105 Executive, LLC—a company Phelan and members of the Phelan family manage and direct. From December 2017 to December 2023, state taxpayers paid this company $2.3 million through HHSC. The original lease ran from January 2014 to December 2023 but has been extended to August 2029. Phelan was first elected to the Texas House in 2014 and began serving in 2015. He was elected Speaker by fellow House members in 2021.
On February 17, Rinaldi took to social media platform X, noting that the 2023 rent HHSC paid Phelan is three times the market value.
“This looks like a $268,000 windfall to the Speaker’s business paid for money appropriated by the House, which is a big deal,” he wrote. “My next question would be how many other income streams are there like this one?”
This critique is wrong & @TexasScorecard is right (as John realizes 3 tweets down). 2023 rent HHS is paying to Phelan is $29.14 sq ft. Other office space in the same building is going for $10 sq ft. HHS is paying Phelan 3 times market. Cc: @TomOliverson https://t.co/fAIRVzy5AK https://t.co/oanZZ4ZiEf pic.twitter.com/wg199Aa5wT
— Matt Rinaldi (@MattRinaldiTX) February 17, 2024
Trump endorsed the following House candidates:
- Brent Money for House District 2, a seat only recently filled by Jill Dutton in a special election
- Joanne Shofner, who is challenging State Rep. Travis Clardy (R-Nacogdoches) for House District 11
- Steve Toth (R–Conroe), who is the current representative for House District 15
- Janis Holt, who is challenging State Rep. Ernest Bailes (R-Shepherd) for House District 18
- Gary Gates (R–Richmond), who is the current representative for House District 28
- Wes Virdell for House District 53, which is an open seat following the retirement of State Rep. Andrew Murr (R-Junction)
- Hillary Hickland, who is challenging State Rep. Hugh Shine (R-Temple) for House District 55
- Stormy Bradley, who is challenging State Rep. Drew Darby (R-San Angelo) for House District 72
- Don McLaughlin for House District 80, which is an open seat following the retirement of Tracy King (D-Uvalde)
- John Smithee (R–Amarillo), who is the current representative for House District 86
- Caroline Fairly for House District 87, which is an open seat following the retirement of Four Price (R-Amarillo)
- Barry Wernick, who is challenging State Rep. Morgan Meyer (R-Dallas) for House District 108
Bailes, Darby, Shine, and Meyer all voted to impeach Attorney General Ken Paxton—a close ally of Trump. Gates also voted for impeachment but later apologized and contributed $15,000 to Paxton’s campaign fund.
Bailes, Darby, Clardy, and Shine all voted against Gov. Greg Abbott’s school choice program. Abbott has endorsed Trump’s 2024 presidential bid.
Money, Virdell, Hickland, and Bradley have also been endorsed by Gun Owners of America.
A consensus is forming among a broad front of Republicans (Trump, Abbott, Patrick and Paxton) on who to vote for on Tuesday, and Phalen’s pals ain’t it.
Ten years into his career in the Texas House, state Rep. Gary VanDeaver (R-New Boston) now faces the very same challenge he mounted a decade ago — a newcomer hoping to unseat an incumbent.
VanDeaver faces two challengers — the Gov. Greg Abbott-backed Chris Spencer and Attorney General Ken Paxton-backed Dale Huls — in his bid for a sixth term in the Legislature.
He is one of 15 House Republicans seeking re-election who voted both for Paxton’s impeachment last May and to strip education savings accounts (ESA) from the House education omnibus bill last November, and for those he’s become a top target. Abbott and the pro-school choice groups wading into Texas House races have an eye toward flipping the seat, and Paxton is bent on exacting retribution.
Snip.
VanDeaver is in a dogfight, primarily against Spencer, the former chairman of the Sulphur Springs River Authority who loaned himself $300,000 at the campaign’s outset and is benefitting greatly from outside money.
According to ad buy data provided to The Texan from Medium Buying, a national GOP placement agency, Spencer and the groups backing him have reserved $116,000 of ad space on cable and broadcast television from Monday through the election next week. That dwarfs the $12,000 spent by VanDeaver’s camp during the same period.
Most of Spencer’s ad space was purchased either by Abbott’s campaign or the School Freedom Fund, a PAC affiliated with the national group Club for Growth.
As of the eight-day reporting period, VanDeaver has $450,000 cash-on-hand after raising $684,000 from January 26 through February 24. During that same period, Spencer raised $257,000 and has $166,000 left on hand. Huls is far behind the other two with $16,000 raised and $7,000 remaining in the bank.