Paxton vents over lack of campaign control as DC establishment he once battled comes to his aid
A source in Texas Attorney General Ken Paxton’s political orbit tells Fox News Digital that the Republican Senate nominee in Texas appears frustrated with a lack of control over his campaign as he faces off against Democratic nominee state Rep. James Talarico in a combustible Senate battle. The source spoke on Monday after Politico reported on an audio recording from late last month where Paxton said, “I’ve never been in a race where I felt less control over the campaign and, like, what issues are going to matter because it’s all coming — you know — from D.C.” The faceoff in red-leaning Texas between Paxton and Talarico is a race to succeed longtime Republican Sen. John Cornyn, who Paxton defeated in a bruising primary fight. The contest is one of roughly a dozen that will determine if the GOP holds onto its Senate majority in the midterm elections. “I don’t control message or what we’re doing… I don’t have ability to change anything,” Paxton added on the audio recording. “So I have to live with whatever I’ve got. So it is a challenge.” WHAT THE LATEST FOX NEWS POLL IN TEXAS SHOWS Paxton made the comments, according to the report, during a Sept. 24 lunch in the nation’s capital hosted by a D.C.-based lobbying firm. Politico reported it obtained the recording from a person attending the lunch who does not support Paxton. “Campaigns don’t coordinate with super PACS and that’s obviously what AG Paxton was referring to,” Paxton campaign adviser Nick Maddux told Fox News Digital in a statement. Super PACs and other outside groups are legally prohibited from directly coordinating with candidates and campaigns over spending and other expenditures. Maddux added, “AG Paxton is thankful for the support and knows how important Texas is to keeping the majority, which is why he’s on the ground every day talking to Texas, raising money, and taking his message directly to the people including with his statewide television buy that started over this past weekend.” WHO’S UP AND WHO’S DOWN IN THE LATEST FOX NEWS MIDTERM POWER RANKINGS Paxton’s frustration at the lunch appeared to extend beyond his lack of control over outside spending. In a separate recording from the same gathering obtained by The New York Times, Paxton suggested last month’s GOP midterm convention in Dallas had hurt Republican candidates’ polling. “Dropped our numbers. Everybody’s numbers dropped. Right now, yeah, not good,” Paxton said. Maddux described the reporting as “manipulated nonsense.” As he campaigned against Cornyn in the March primary and a May runoff, Paxton characterized the senator as a “Washington insider” and a “RINO” — which stands for “Republican in name only.” And Paxton, known as a MAGA firebrand, showcased his outsider credentials and support for President Donald Trump. The president made an 11th-hour endorsement of Paxton ahead of the runoff. Paxton, meanwhile, repeatedly criticized Cornyn for being bankrolled by the D.C. Republican establishment. “I think John spent $100 million. What a waste of money. That money should have been going to Republicans in other states, not fighting another Republican,” Paxton told Fox News Digital in Waco, Texas, on the eve of the March primary. Groups aligned with Cornyn vastly outspent pro-Paxton groups during the primary campaign to run spots highlighting the Texas attorney general’s political baggage. DEMOCRACY ’26: STAY UP TO DATE WITH THE FOX NEWS ELECTION HUB Paxton has faced a slew of scandals and legal problems that have battered him over the past decade, including a 2023 vote by the Texas House of Representatives to impeach him. Paxton was eventually acquitted of all charges by the state Senate. Paxton is also currently dealing with a contentious divorce, with his wife citing “biblical grounds” based on “recent discoveries” as she filed last year to end their marriage. Cornyn, who was supported by Senate Majority Leader John Thune and the National Republican Senatorial Committee, regularly argued that if Paxton won the nomination, the party would be forced to spend millions of dollars to keep the seat from flipping and that Republicans down-ballot would suffer. Now, many of those groups that targeted Paxton during the primary are spending big bucks to try and save the Senate seat. A projection from the ad-tracking firm AdImpact estimates that up to $850 million will be spent in the race. “The same people who tore him down earlier this year are now trying to rebuild him,” the Paxton source told Fox News Digital. The source added that Paxton “genuinely doesn’t like the DC people.” The latest Fox News poll in the race, conducted Sept. 24-28, showed Talarico with a slight 51%-49% edge over Paxton. SIGN UP TO GET THE POLITICS NEWSLETTER And the race in Texas, along with Senate showdowns in Ohio, Michigan, Maine, Iowa, and Alaska, is rated a toss-up in the most recent Fox News Power Rankings. The Paxton source said that the candidate appears to be in uncharted territory. Pointing to Paxton’s ballot box victories as a state lawmaker and his 2014 election and 2018 and 2022 re-elections as state attorney general, the source said, “I don’t think he’s ever been in a campaign situation where he’s been the underdog.”
Medicaid provider allegedly billed $165K for dead patient’s rides among fraud exposed in explosive report
A Colorado resident was charged with trying to steal hundreds of thousands of taxpayer dollars by billing the state’s Medicaid program for transporting a patient to doctor’s appointments — rides that would have taken place after that person had already died. A new report by the House Energy and Commerce Committee revealed that taxpayer-funded healthcare programs, specifically Medicare and Medicaid, are rife with vulnerabilities that allow them to be exploited on the local, state and federal levels. “Medicare and Medicaid fraud occurs nationwide and costs American taxpayers billions of dollars a year. Fraud is prevalent in all sectors of health care and is especially egregious in taxpayer-funded health care programs that are intended to serve vulnerable populations, including the elderly, disabled, children, and pregnant women,” the report said. “Patients are suffering from identity theft, long waiting lists, substandard health care, and, in some cases, a lack of health care services due to fraudulent claims to Medicare and Medicaid.” Fox News Digital highlighted some of the most egregious examples below. BOMBSHELL REPORT EXPOSES HEALTHCARE FRAUD SCHEMES AS TAXPAYERS LOSE UP TO $521 BILLION ANNUALLY Wesam Yassin was one of two providers of non-emergency medical transportation, a Medicaid benefit for helping patients get to doctor’s appointments, charged by state and local prosecutors for fraudulent billing in Colorado in February 2026. Yassin is accused of charging Colorado Medicaid a total of $3.3 million in questionable bills under a company called Sama Limo, according to the report. Yassin is accused of charging $283,000 for 64 rides for one person, coming out to over $4,000 per ride. Roughly $165,000 of those charges came after the patient in question had already died, the report said. “Proceeds from this scheme were allegedly used for personal gain, including the purchase of a home, furnishings, luxury vehicles, jewelry, and cosmetic surgery,” a federal release announcing the charges said. It also pointed to charges against Ashley Marie Stevens, who is accused of trying to bilk the state for over $1 million in taxpayer dollars. She is accused of billing the state some $400,000 for non-medical rides for herself and her family in addition to “ghost rides,” which never even took place. VANCE-LED TASK FORCE CUTS OFF $1.4B FROM HOME HEALTH, HOSPICE PROVIDERS SUSPECTED OF FRAUD The report also accused the hospice industry in California of raising suspicions of fraud. “Investigators observed nearly 500 hospices operating in a three-mile radius in L.A. County, 137 hospices operating on Van Nuys Boulevard alone, and 89 companies registered to a single address in Van Nuys,” the report said. TRUMP ADMIN’S FRAUD CRACKDOWN TARGETS FOREIGNERS ACCUSED OF INFILTRATING US FEDERAL PROGRAMS The document also noted that House lawmakers raised concerns with the Department of Health and Human Services (HHS) that an increase in home health and hospice providers raised red flags about possible healthcare fraud tied to foreign criminal groups earlier this year. “The Committees were concerned about data from a March 2022 California State Auditor’s Report and HHS hospice ownership data, showing that L.A. County had more than 31 percent of the hospice agencies in the U.S. in 2022,” the report said. DOJ CHARGES 10 SOUTHERN CALIFORNIA DEFENDANTS IN LARGEST FEDERAL HEALTHCARE FRAUD CRACKDOWN IN US HISTORY The California Department of Public Health had placed a freeze on new hospice licenses in January 2022. Despite that, however, the report found that 15 new hospices — located in a single Los Angeles County building — still got Medicare certification in 2023. House Republicans are worried that potential hospice fraud is not the only area being targeted by international criminal groups. The report highlighted allegations from 2024 in which “years-long, large-scale” schemes targeted as much as $3 billion in American taxpayer dollars via fake bills for urinary catheters. Members of Russian organized crime groups bought 30 small medical supply companies already receiving federal dollars, and billed the Medicare system nearly $11 billion for urinary catheters, the report said. More than 99% of those funds never went out the door, however. Similar medical equipment fraud schemes ensnared bad actors in Estonia, Pakistan, Georgia and Hong Kong. Allegations of fraud in Minnesota’s social programs have been well documented and the subject of numerous state and federal probes. One particular incident highlighted in the report involves a man named Abdinajib Hassan Yussuf, who pleaded guilty to trying to defraud $6 million from a Minnesota autism therapy program paid for by state Medicaid dollars. He and his co-defendants are accused of hiring unqualified people as behavior counselors and getting children to enroll by bribing their parents, the report said. Yussuf admitted during his plea hearing that he did not actually know anyone with autism, the report said. House Energy and Commerce Committee Chairman Brett Guthrie told Fox News Digital that “combating fraud is a coast-to-coast battle.” “Every instance of fraud we uncover represents money stolen from taxpayers and care taken away from the patients who depend on it most,” Guthrie said.
Former Republican House Speaker Dennis Hastert dead at 84
Former Republican Rep. Dennis Hastert, who was the longest-serving GOP House Speaker, died on Monday at the age of 84. Hastert died peacefully of natural causes at his home, according to Kendall County Coroner Jacquie Purcell. The longtime politician represented Illinois’ 14th Congressional district for 20 years and served as Speaker of the House for eight years before retiring in 2007. His career was later tarnished by a bank fraud conviction linked to his efforts to quash the story of a former student who accused him of sexual abuse during his time as a high school wrestling coach. He was sentenced to 15 months in prison in 2016. Hastert also underwent sex offender treatment, two years of supervised release after his time behind bars and paid a $250,000 fine to a crime victims fund. HOUSE DEMS PLOT TRUMP INVESTIGATION BLITZ IF THEY SEIZE MAJORITY Hastert pleaded guilty in the case to attempting to pay $3.5 million to an unnamed individual to keep the alleged sexual abuse a secret. REPORTER’S NOTEBOOK: DEMOCRATS FACE AN IMPEACHMENT TRACTOR BEAM THAT COULD DERAIL THEIR AFFORDABILITY MESSAGE Before he sentenced Hastert, Judge Thomas M. Durkin described the then-74-year-old Illinois Republican as a “serial child molester,” and that “accusing Individual A of extorting you was unconscionable.” Multiple alleged victims and their family members read victim impact statements prior to Hastert’s sentencing. STEWART EXPECTS SCHUMER, JEFFRIES TO DISAPPOINT IF THE DEMS WIN BACK THE HOUSE AND SENATE Assistant U.S. Attorney Steven Block called Hastert’s conduct “horrendous.” But because of the statute of limitations, Hastert could only be charged with a financial crime related to the payments he was making to one of at least four victims of sexual abuse. Block said the sentence should take into account that Hastert “continues to deny what should now be obvious to everyone,” that the payments were to conceal sexual abuse. Defense attorney Thomas Green said he “acknowledges and respects” the pain of the man who described being molested as a teenager. He urged the judge to take into consideration the “entire arc” of Hastert’s life, asserting that he reshaped his life as a public servant during his political career. The Associated Press contributed to this report.
Highest-ranking US official to ever serve jail time, former House Speaker Dennis Hastert dead at 84
Former House Speaker Dennis Hastert, R-Ill., “passed away at his home due to natural causes,” according to Kendall County, Illinois, Coroner Jacquie Purcell. The brief statement was posted on the coroner’s website early Monday morning. Hastert was 84 and one of the most ignominious figures to serve in American politics. He was the longest-serving Republican speaker in history, wielding the gavel from 1999 to 2007. But Hastert’s career featured one of the most disgraceful falls from grace, becoming the highest-ranking U.S. official to ever do jail time. MONICA LEWINSKY RECALLS ‘VERY DARK MOMENTS’ AFTER SCANDAL, SURVIVING JUDGMENT BY ‘BILLIONS OF STRANGERS’ The scandal involving Hastert emerged years after he left Congress — but dates back to the 1960s and 1970s when he served as high school history teacher and wrestling coach in Illinois. Hastert admitted in 2015 that he sexually abused teenage students and athletes as young as 14 — long before he entered Congress in the mid-1980s. Hastert was an accidental speaker. He served as chief deputy whip in the Republican hierarchy in late 1998 when House Speaker Newt Gingrich, R-Ga., decided to step aside. Gingrich was controversial. Some GOP members had knives out for him and believed Gingrich overplayed his hand pushing for impeachment of President Clinton. This, coupled with Republicans nearly losing control of the House in the 1998 midterms, set the table for Gingrich to step aside. Republicans tapped then-Rep. Bob Livingston, R-La., Chairman of the Appropriations Committee, to become Speaker in 1999. But in late 1998, as the House voted to impeach Clinton, it came to light that Livingston had an inappropriate relationship with a lobbyist. Hours before the House voted to approve two articles of impeachment for Clinton linked to his relationship with Monica Lewinsky, Livingston stepped aside and said he would not stand for speaker in the new year. By nightfall, Republicans picked Hastert, a backbencher, to serve as speaker in 1999. Hastert was criticized in late 2006 for not moving more aggressively to protect teenage House pages after it was discovered that then-Rep. Mark Foley, R-Fla., sent inappropriate text messages to the pages. The scandal led to the end of the House page program, which dates back to the beginning of the republic. Hastert lost the speakership when Democrats seized control of the House in the 2006 midterms. Hastert did not serve in the GOP leadership in early 2007 and resigned from office later that year. FMR DEM REP BARNEY FRANK, SHARP-TONGUED LIBERAL TRAILBLAZER AND DODD-FRANK CO-AUTHOR, DIES Hastert was often quiet and shunned interviews and the press. Known as “Coach” to fellow lawmakers because of his wrestling background, Hastert often proclaimed that he was more of a “listener” than a “speaker.” But Hastert’s career took a dark turn in 2015. US OLYMPIC HERO NANCY HOGSHEAD WINS LEGAL BATTLE AFTER VOLLEYBALL COACH’S $250M DEFAMATION SUIT IS DISMISSED Federal banking regulators flagged Hastert’s curious withdrawals of staggering amounts of cash at peculiar intervals. Banking regulators suspected the transactions signaled that someone may be blackmailing the former Speaker. But that’s how it came to light that Hastert was actually paying millions of dollars in hush money to the family of a student he abused in the 1970s. Hastert admitted to sexually abusing students decades before at his trial for illegal bank transactions, saying he “mistreated athletes” and “took advantage of him.” The judge in the case called the former speaker “a serial child molester.” Hastert served 13 of 15 months of his federal sentence for banking crimes at a facility in Rochester, Minn. However, Hastert never faced legal ramifications for sexual conduct. Hastert is also known for the “Hastert Rule.” When Hastert served as speaker, he would not bring a piece of legislation to the floor unless it had the support of a majority of House Republicans. House GOPers continued to use that standard for bills for many years after Hastert left office. But that terminology fell out of favor after Hastert was convicted and information about his past became public.
Catholic schools, banned rifles and ‘climate lawfare’: Blockbuster fights await Supreme Court
The Supreme Court opens its new term Monday with cases that could reshape religious liberty, gun rights, immigration and the balance between state and federal authority. While the last term was dominated by major cases testing presidential power — including Trump’s authority to restrict birthright citizenship, impose tariffs and fire independent agency officials — many of the court’s marquee cases this term span a wide range of issues, including federalism and individual rights. “There’s a couple of religious freedom cases,” Carrie Severino, president of JCN, told Fox News Digital. “We have a couple cases that touch on state and federal preemption, but I’m not sure there’s an easy theme for all of them.” The blockbuster case this term is Suncor Energy v. Boulder County, and it centers on whether Colorado officials can use state tort law to seek damages from oil giants Suncor and ExxonMobil for climate-related harms, or whether federal law blocks those claims. SUPREME COURT CLIMATE SHOWDOWN JOLTED BY ALITO’S LAST-MINUTE DECISION “If Colorado actually succeeds on its nuisance claims and others against these companies, the upshot would not just be these companies changing what they do in a way to protect Colorado or remedy Colorado, but rather it would affect their operations far outside of the state,” Adam White, senior fellow at American Enterprise Institute, shared during a Federalist Society Panel. “And the question is, can Colorado courts reach outside of their own state and try in effect to regulate?” Suncor and ExxonMobil argue that the Clean Air Act gives the federal government authority over interstate and international emissions, leaving Colorado unable to hold them liable for conduct outside the state. But the state argues that it is seeking damages under state law and that the Clean Air Act preserves states’ authority to enforce their own laws. The Supreme Court will decide whether federal law blocks Boulder’s climate lawsuit and whether the justices can hear the case. Severino said the case is an effort by “climate lawfare activists” to regulate carbon emissions. “If the court is viewing this as an effort to weaponize one jurisdiction’s law to really regulate outside its borders, then I think they’re going to be not very happy about this claim,” Severino said. “If the court really views it as an attempt by Colorado to legislate worldwide actions of these energy companies, then I think they’re going to say this is actually something that fits within the federal government’s sphere of activity, not a single state.” The case marks the first oral arguments heard before the high court. An Arizona election integrity measure is at the center of another Supreme Court case testing the balance of power between states and the federal government over how elections are run. THESE 11 UPCOMING SUPREME COURT DECISIONS COULD MAKE OR BREAK TRUMP’S SECOND TERM AGENDA Republican National Committee v. Mi Familia Vota stems from an Arizona law requiring documentary proof of U.S. citizenship for certain voter registrations. Voters who register without that documentation may qualify as “federal-only” voters, allowing them to vote in federal elections but not state and local races. The law also allows the state to purge noncitizens off voter rolls close to an election. The dispute centers on whether the National Voter Registration Act prevents Arizona from imposing additional requirements on voters. The Supreme Court will also hear major cases involving gun rights and religious liberty and will determine how far states can go in limiting those freedoms. Colorado is up to bat twice before the Supreme Court this term, with St. Mary Catholic Parish v. Roy testing whether the state can exclude Catholic preschools from its universal preschool program because of religious policies barring same-sex couples and LGBT students from attending the schools, which conflicts with the state’s nondiscrimination requirements. Colorado provides funding to private preschools that participate in the program but requires them to follow state anti-discrimination rules covering sexual orientation and gender identity. The Catholic schools argue those rules clash with their religious beliefs and that they should not have to abandon their policies to receive the same funding available to other private schools. “They don’t agree with the state on things like allowing children to use the opposite sex bathroom if they identify with the opposite sex. So this is something the Supreme Court has been very favorable to religious organizations of and for not allowing states to just cut them out of otherwise generally applicable state benefit programs,” Severino said. EXCLUSIVE: SUPREME COURT PRAYER GROTTO CASE COULD IMPACT ‘EVERY SINGLE ZONING LAW’ IN AMERICA, ATTORNEY SAYS But Amanda Shanor, an attorney who helped represent the gay couple who were denied a wedding cake before the Supreme Court, said during a Federalist Society Panel there is concern that the case could chip away at anti-discrimination protections by expanding when businesses and institutions can refuse to serve people based on their identity. “The schools are not saying, like in the earlier cases — like Masterpiece Cake Shop or 303 Creative — that they want to not serve somebody because of the expression that it would express with regard to a particular event, but instead that they don’t want to have the kids or the families because of the status of the kids or the families,” Shanor said. “And will that then go spread over into other things, like will the bakery be able to say, ‘I don’t want to serve all X type of people?’” Illinois and Connecticut have cases, with state laws restricting certain semiautomatic firearms facing challenges at the Supreme Court. “This is important because the Supreme Court, for the first time following its landmark Bruen decision, is going to be looking at how states or municipalities can limit particular types of weapons,” Severino said. “What the court said it’s going to look at is whether these are weapons that are in common use and have lawful purposes, and so this is the court’s opportunity to look at things like the popular AR-15 type rifle and decide
WATCH: GOP senators skeptical of Bill Gates’ ‘fearmongering’ AI warning as Dems sound alarm
Senators on Capitol Hill were split on Microsoft co-founder Bill Gates’ warning that artificial intelligence (AI) could lead to “a billion deaths” amid growing controversy over the technology’s direction and rapid growth. Gates is one of several industry giants who have sounded the alarm on AI’s advancements, including Anthropic CEO Dario Amodei and OpenAI CEO Sam Altman. President Donald Trump has pushed back on calls to slow down AI development, arguing a rollback could give an advantage to competitors in the AI race like China. Gates made the claim on NBC’s “Meet the Press” last week when he was asked whether AI could wipe out humanity — as some in the industry have warned is a possibility that could happen within a decade. GOP LAWMAKERS SMELL SOMETHING ELSE BEHIND BIG TECH’S AI DOOMSDAY WARNINGS: ‘SOMETHING ELSE GOING ON’ “I think that’s incredibly irresponsible,” Sen. John Cornyn, R-Texas, told Fox News Digital. “That’s not as dire as some of the AI officials who have suggested that there was a 10 percent chance of wiping out all of humanity,” Sen. Angus King, I-Maine, said. “This is something we have to take very seriously.” “What worries me about that prediction is that the Republicans who are in control of the House and the Senate say ‘everybody go home and let AI do whatever they want to do,’” Sen. Elizabeth Warren, D-Mass., said. Cornyn claimed that Gates’ warning risks fueling calls for regulations that could ultimately benefit the biggest players in the AI industry while crowding out smaller competitors. “I mean, he’s fearmongering,” Cornyn said. “And I worry that it’s in pursuit of what’s sometimes called regulatory capture, that the government and the public will demand regulation while a handful of prime AI companies are in control and crowd out any competitors.” WATCH: AI SAFETY SCARE SPARKS CAP HILL FIGHT OVER GUARDRAILS: ‘CHINA’S GOING TO EAT OUR LUNCH’ King, however, argued the competition between tech companies gives reason why the government should implement safeguards. “The president seems to think, well, industry will regulate itself. The government shouldn’t be involved,” King said. “The problem with that is that these companies are engaged in an intense competition.” He claimed that companies could then be reluctant to voluntarily slow development or impose their own safeguards if doing so risks allowing competitors to pull ahead in the industry. “They’re gonna be forced to make a decision: Should we slow down and put in our own safeguards?” King explained. “But if we do, our competitor across the street won’t and [will] get ahead of us, or China will get ahead of us.” Republican senators also warned about another concern surrounding the rapid development of AI: Could China pull ahead? BEYOND KILLER ROBOTS: CHINA’S REAL AI THREAT TO AMERICA IS ALREADY HERE, EXPERTS WARN “Look, I think we need to use common sense,” Sen. John Hoeven, R-N.D., said. “So we want to develop it. Obviously, we need to stay ahead of adversaries like China, but we need to do it safely. “ “I think the administration is generally on the right track in not trying to put a heavy hand on this technology, which is going to be fundamental to our economy and our national security,” Cornyn said. The conversations around AI ramped up this month, shortly before both the House and Senate went on recess leading up to the midterm elections. Many Democrats called for Congress to stay in session to address the concerns around AI and work to get legislation that enacts safeguards. “We have a responsibility, but not the Republicans,” Warren said. “They say ‘send everybody home,’ because Donald Trump doesn’t want to do anything about AI.”
Wall Street has a new rival, and it’s deep in the heart of this southern state
DALLAS — Wall Street has long been the undisputed home of American finance. Now, one southern state wants a seat at the table. The Texas Stock Exchange is at the center of an ambitious effort to transform the Lone Star State into America’s next financial powerhouse, challenging the long-standing dominance of the New York Stock Exchange and Nasdaq while fueling the rise of what’s become affectionately known as “Y’all Street.” The Dallas-based exchange plans to provide companies with another venue to list their shares and raise capital, with supporters betting it will help establish Texas as America’s next financial frontier. ONE SOUTHERN STATE’S RISE IS MAKING IT AMERICA’S NEW ‘ECONOMIC CENTER OF GRAVITY’ Former Rep. Jeb Hensarling, R-Texas, a strategic advisor and member of the Texas Stock Exchange, believes the shift is already underway. “Texas is really becoming the economic center of gravity in America,” Hensarling told Fox News Digital during an interview at the Texas Stock Exchange’s headquarters. “As New York is increasingly shoving capital out, Texas is saying, ‘You’re welcome here,’” he said. “We put out the welcome mat, whereas New York, capital isn’t really made to feel at home, and capital wants to go where it’s made to feel at home.” Hensarling argued that years of pro-business policies have helped transform Texas into more than just an attractive place to operate a company. GOV ABBOTT EXTENDS OFF-RAMP FOR NY BILLIONAIRES FLEEING MAMDANI’S POLICIES “Texas has been a great place to do business for decades, but increasingly it’s a great place to headquarter your business,” he said. “Over the last couple of legislative sessions, because of laws passed, it’s a great place to incorporate your business.” “The last piece of that puzzle was the Texas Stock Exchange,” Hensarling said. “It’s now making Texas the best place to list your company and to go public.” BILLIONS IN TAXPAYER INCOME ARE LEAVING TWO ICONIC STATES — AS A NEW ECONOMIC MAP EMERGES The exchange is part of a broader wave of investment flowing into Texas. In recent years, major corporations have moved their headquarters to the state, while financial giants including Goldman Sachs, JPMorgan Chase, Charles Schwab and Bank of America have expanded their Texas operations. Supporters say those moves reflect a larger migration of businesses and capital away from traditional financial centers toward states with lower taxes and lighter regulation. Critics, however, note that New York remains the country’s dominant financial hub by a wide margin, with the world’s largest stock exchange, major investment banks and deep capital markets. THIS STATE ISN’T JUST GROWING — ITS ECONOMY IS GETTING RICHER PER RESIDENT Whether “Y’all Street” can truly rival Wall Street remains an open question. But with a new stock exchange, an influx of corporate headquarters and some of the nation’s biggest financial firms expanding in Dallas, Texas is making its boldest bid yet to challenge Wall Street’s dominance. Hensarling believes the trajectory is clear. “Texas is really becoming the economic center of gravity in America,” he said.
AI is supercharging political ad wars. But viral doesn’t mean victorious
Artificial intelligence is dramatically lowering the cost of political advertising, allowing campaigns to churn out attack ads, memes and other targeted messages at a pace that would have been prohibitively expensive just a few years ago. In the political ad wars, campaign operatives can now use generative AI to produce in minutes or hours what once required days by a team of writers, voice talent, video shoots and production teams. The shift is turning political creative from an expensive campaign asset into something much more affordable and closer to disposable content, potentially giving candidates and outside groups the ability to flood voters with more messages. While the exact number is difficult to identify, the ad-tracking firm AdImpact had identified 29 campaign ads in federal and gubernatorial contests that disclosed using AI content, as of two weeks ago. Meanwhile, the Wesleyan Media Project, which also counted ads that did not make AI disclosures, has identified at least 164 AI-influenced ads this cycle. HEAD HERE FOR THE LATEST FOX NEWS AI REPORTING AND ANALYSIS But the jury is still out on whether the use of AI for campaign messaging can help produce the ultimate objective: an election victory. “It certainly allows you to produce more content in varying styles and more cost effective,” veteran Republican consultant Jesse Hunt told Fox News Digital, as he pointed to the creative and economic appeals of using AI in political advertising. Democratic strategist Chris Moyer said that “AI gives campaigns more tools for less cost. So there is a democratizing of the tools that campaigns used to have to spend valuable resources on … You can get access to things with a smaller budget.” Will Ritter, a longtime Republican ad maker and media and political strategist, told Fox News Digital that the creative advertising and political strategy agency he co-founded, Poolhouse, “went from last cycle doing basically doing nothing with AI to most of our ads now have some AI component.” “The good news is that it’s really cool technology. It allows a lot of people to make stuff. You can make almost anything,” Ritter said. But he added, “You still need to be able to know what you’re doing with the tools.” Pointing to his agency, Ritter noted, “we have professionals who know how to use and integrate them, and they also know the point of this is to have a good ad that can be done faster and cheaper now but still maintains the main point, which is to communicate a message, not to show off cool visual tech.” Campaign veterans say that if you’re not using AI to produce messaging content and other key tasks, including voter outreach, you are already behind the eight-ball, and that will only increase going forward. “We are running the most organized and sophisticated congressional campaign in the country, and we utilize every legitimate tool that helps our team improve productivity. Any campaign that doesn’t would be foolish,” Ciro Riccardi, a top campaign adviser for Republican Rep. Mike Lawler of New York, told Fox News Digital. FOX NEWS POLL: VOTERS QUESTION WHETHER AI’S PROMISE OUTWEIGHS ITS RISKS Lawler is running for re-election in a key swing district in New York City’s northern suburbs that Democrats are targeting as they aim to win back the House majority. Lawler’s campaign is one of hundreds of campaigns across the country that have reported spending on AI technology vendors in their Federal Election Commission (FEC) disclosure reports. While spending by campaigns on AI is expected to increase, Riccardi noted that Lawler’s 2026 re-election team will “spend more money on pizza for volunteers” than it will on AI tools. But are AI-generated ads helping candidates win at the ballot box? Republican gubernatorial candidate Brian Shortsleeve of Massachusetts grabbed attention in February with an AI-generated radio ad that used an AI-generated version of Gov. Maura Healey’s voice in which the Democratic governor made disparaging comments about her administration and the economy. “We have one of the highest electricity rates in the nation,” the AI-generated voice said in the spot. “Thanks to me slapping on excessive fees to fund my climate agenda.” DEMOCRACY ’26: STAY UP TO DATE WITH THE FOX NEWS ELECTION HUB The deepfake — an AI-generated video, image or audio recording created or altered using artificial intelligence to make a real person appear to say or do something they never actually did — raised questions about the legal limits of AI technology in elections. Thirty-one states have enacted laws regulating political deepfakes, but the Federal Election Commission has not implemented any AI rulemaking. The attention surrounding the Shortsleeve ad did appear to boost the business executive and former acting general manager of the Massachusetts Bay Transportation Authority in his bid to win the GOP gubernatorial nomination. He was defeated in the September primary in a landslide by former medical device executive Mike Minogue. In Los Angeles, reality TV star and online influencer-turned mayoral candidate Spencer Pratt used AI-generated videos that went viral to significantly boost his visibility and his campaign’s online momentum. The videos, which Pratt shared and reposted, humorously and dramatically portrayed him as a superhero saving a dystopian, burning Los Angeles, while depicting incumbent Democratic Mayor Karen Bass and other officials as villains. The videos grabbed millions of views on social media platforms like X, TikTok, and Instagram, and appeared to help to turn Pratt from a long-shot mayoral candidate into one of the three top contenders. But the AI-generated messaging wasn’t enough to help Pratt, a Republican who ran for mayor as an independent, advance to the general election in the blue-leaning city. Pratt was eliminated as he came in third in the city’s June 2 primary. SIGN UP TO GET THE POLITICS NEWSLETTER The National Republican Senatorial Committee earlier this year targeted Democratic Senate nominee in Texas state Rep. James Talarico with an ad showing an AI-generated version of the candidate reading controversial old social media posts. Meanwhile, an AI-generated image of former Rep. Mike Rogers, the GOP nominee in
Cruz-Vance rivalry heats up as Texas senator suggests VP is ‘feeling insecure’
Sen. Ted Cruz accused Vice President JD Vance of “feeling insecure” after Vance suggested the Texas Republican was already running for president in 2028, escalating a public clash between two possible contenders for the GOP nomination. “In my experience, people engage in political bomb-throwing when they’re feeling insecure,” Cruz told Politico in a phone interview Saturday, responding to Vance’s claim in an interview with NBC News that it was “really obvious” Cruz was already running for president. “So he’s welcome to make whatever comments he likes,” Cruz told Politico. “I’m going to keep focusing on the midterms and helping us win on Election Day in the next 30 days.” THE ONE LINE FROM JD VANCE’S GOP KEYNOTE THAT REVEALS HIS VISION FOR AMERICA Vance made the accusation in an NBC News interview on Thursday. “It is really obvious to me that, at this very moment, Ted Cruz is running for president,” Vance told the outlet. “At this moment, I’m not. I’m trying to help elect Republicans. That’s what I’m going to keep on doing.” Vance is considered a possible contender for the 2028 Republican presidential nomination. Cruz, who ran for the GOP nomination in 2016, has left open the possibility of another White House bid. “I’ll certainly be part of the discussion,” Cruz told MS NOW in August when asked about the 2028 race. EXCLUSIVE: INSIDE VANCE’S INTIMATE CAPITOL HILL HUDDLE AS REPUBLICANS CONFRONT TOUGH MIDTERM TERRAIN Cruz told Politico on Saturday that he remains focused on helping Republicans keep control of the House and Senate in November, pointing to his campaign travel on behalf of GOP candidates in Georgia, Iowa, Nebraska, South Carolina and his home state of Ohio. He told the outlet he also plans to travel to Alaska, Florida, North Carolina and South Carolina this month. “Over the last 10 years, there’s no Republican in the country who has campaigned for more Senate candidates, more House candidates, more gubernatorial candidates than I have, and this year will be no exception,” Cruz told the outlet. That campaigning has included helping Vance during his successful 2022 Senate run in Ohio. “Indeed, ironically, I spent a full day on the road with JD Vance, campaigning with him when he was running for Senate in Ohio,” Cruz told Politico. “I was very glad he won that race. I was very glad to help him.” Vance has also been campaigning for Republican candidates, with appearances in Texas and Florida last week. He is scheduled to hold a rally in Alaska on Monday.
Tech powerhouse’s regulatory push bears similarities to a notorious Washington strategy
Anthropic, the artificial intelligence company behind the Claude chatbot, has pushed for greater government regulation of AI in ways that echo elements of the Washington playbook employed by convicted fraudster Sam Bankman-Fried during his time as a cryptocurrency entrepreneur, a review of public records shows. Both Anthropic and Bankman-Fried poured millions of dollars into Washington influence campaigns while publicly arguing that government rules were needed to make their respective industries safer, although the money flowed through notably different channels. Critics in both industries have accused them of using regulation to strengthen their competitive positions. Bankman-Fried’s political operation later became part of a criminal case involving illegal campaign contributions, while Anthropic’s spending has consisted of disclosed lobbying and advocacy efforts. Anthropic, for its part, denies this characterization. Bankman-Fried, meanwhile, later said his public posture on regulation was essentially “just PR” in a social media direct-message exchange published days after FTX collapsed. Anthropic has been pushing Washington to put guardrails around the fast-moving AI industry, warning that increasingly powerful models could pose serious national security and public safety risks. CEO Dario Amodei has called for mandatory testing and auditing of advanced models, while the company has spent millions lobbying policymakers and backing groups that support tougher AI rules. WHITE HOUSE MEETS AI FIRM ANTHROPIC AMID POLITICAL TENSIONS, PENTAGON DISPUTE The push comes as Anthropic is increasingly engaging with a Trump administration that has made rapid AI development and U.S. dominance in the technology a major priority, warning that falling behind could carry economic and national security consequences. Amodei joined other major tech executives at the White House on Sept. 29, where they signed a voluntary agreement outlining safety standards for companies developing powerful AI systems. Before being convicted of fraud, Bankman-Fried lobbied Washington for a regulatory system for crypto led by the Commodity Futures Trading Commission, presenting it as necessary to protect customers and bring clarity to the industry. He was a prominent supporter of the Digital Commodities Consumer Protection Act (DCCPA), legislation that would have created such a framework — with campaign finance records showing that he cut checks to the bill’s sponsors in the Senate. At the time, some crypto advocates opposed the DCCPA as overly favorable to centralized exchanges such as FTX. Prosecutors later alleged that Bankman-Fried and his co-conspirators flooded the political system with tens of millions of dollars in illegal contributions as part of an effort to increase FTX’s influence in Washington and help advance favorable legislation. Bankman-Fried justified his efforts on the grounds that public safety was at stake, using similar rhetoric to that employed by Anthropic in its quest to regulate AI development. “We need regulatory oversight and customer protection,” he said on social media weeks before FTX collapsed. Testifying before Congress, he argued that crypto regulation should provide “system safety and soundness.” GOP LAWMAKERS SMELL SOMETHING ELSE BEHIND BIG TECH’S AI DOOMSDAY WARNINGS: ‘SOMETHING ELSE GOING ON’ Anthropic has also pursued a lobbying strategy that calls for government regulation, warning lawmakers that advanced AI poses serious national security and public safety risks. Amodei told the Senate Judiciary Committee in 2023 that AI poses “extraordinarily grave threats to U.S. national security” and called for a mandatory “testing and auditing regime” with the power to block deployment of models found unsafe. “Do you guys remember what Sam Bankman-Fried was doing when he was caught red-handed? Aggressively lobbying Washington to ban his competitors,” Brian Chau, the founder of a news platform that leverages AI to aid in investigations, said in response to a piece written by Amodei calling for federal AI regulation. “The apple doesn’t fall far from the tree.” Anthropic’s pro-safety rhetoric, much like Bankman-Fried’s, is backed by large amounts of cash. The firm has spent close to $7 million on lobbying efforts from 2025 through the middle of 2026, per federal disclosures, and has set aside $40 million to Public First Action, a 501(c)(4) tied to the super PAC Public First, which is being spent to advance pro-regulation talking points. “Anthropic is running a sophisticated regulatory capture strategy based on fear-mongering. It is principally responsible for the regulatory frenzy that is damaging the startup ecosystem,” former Trump administration AI advisor David Sacks posted to X in October 2025, responding to Anthropic’s strategy. DAVID MARCUS: BIG TECH INVENTED AI DOOMSDAY TO DUCK REAL LIFE PROBLEMS Much like some crypto advocates argued that the Bankman-Fried-backed DCCPA would have harmed his smaller competitors, Anthropic has been accused of supporting bills, namely California’s SB 53, that allegedly would harm less established AI labs. In the face of criticism, Anthropic has maintained that its commitment to public safety is genuine and pushed back against claims that its legislative activity is disadvantageous to smaller competitors. “Some have suggested that we are somehow interested in harming the startup ecosystem. Startups are among our most important customers,” Amodei wrote in October 2025, noting that SB 53 exempted companies with gross revenues below $500 million. While labs with revenue below the threshold are partially exempted, lower-income firms that use a certain amount of computational resources are still subject to transparency requirements under SB 53. Brian Chau, founder and CEO of the AI-assisted investigative publication Effort News, has also compared Anthropic’s public messaging about unreleased models to Bankman-Fried’s messaging as FTX unraveled. “I remember when FTX was going down SBF would make up a new cope narrative every week and all the FTX stans would instantly believe him,” Chau wrote in response to an article about an unreleased Anthropic model. Anthropic and representatives for Bankman-Fried did not respond to multiple requests for comment when reached by Fox News Digital.