By Renzo Downey and The Texas Tribune Politics Team
120 days until the midterms
IN TODAY’S BLAST
Thune and crew to fundraise for Paxton
Schatzline’s new gig
Data center ads coming down the pike
THUNE AND CREW TO FUNDRAISE FOR PAXTON
U.S. Senate Majority Leader John Thune will be a special guest at an upcoming fundraiser for Attorney General Ken Paxton.
The Blast has confirmed Axios’ reporting that Thune, National Republican Senatorial Committee Chair Tim Scott, future Texas senior Sen. Ted Cruz and more than a dozen other senators will be special guests at the July 22 event, rallying around their new man in Texas after national Republicans dug deep in their failed bid to stop Paxton from ousting U.S. Sen. John Cornyn.
An invite, obtained by The Blast, lists AxAdvocacy and former U.S. Rep. Lamar Smith, R-San Antonio, as part of the host committee in D.C., with special guests including Sens. Katie Britt of Alabama, Lindsey Graham of South Carolina, Mike Lee of Utah, Rick Scott of Florida and Tommy Tuberville of Alabama.

Cornyn and his allies spent upward of $90 million defending the incumbent. Those allies included One Nation, a PAC affiliated with Senate leadership that spent $11 million supporting Cornyn.
The logic behind the massive spending was that if Cornyn could get past the primary, Republicans could save money and have a better shot at retaining the seat in the long run. With Paxton’s perceived weakness in the electoral and fundraising departments, national Republicans would have to spend more defending Paxton in November, the logic continued.
Now that the general election matchup is set, Paxton is the fundraising underdog against Democratic state Rep. James Talarico. Not only were their fears realized, but Thune and crew will have to work hard to undo the attacks they ran against Paxton, like calling him incompetent and dinging him for his alleged affairs. That starts with a bit of fundraising.
On Wednesday, the Paxton campaign and the NRSC set up a joint fundraising committee called Paxton Victory. Sharing a joint fundraising committee with their candidates is a standard practice, particularly for Republicans, that streamlines the process for donors and spreads out a campaign’s operating costs.
Meanwhile, Democratic supporters bail from Graham Platner after Politico reported on a sexual assault allegation against the Maine Senate nominee. A blowup over the Maine race, which was shaping up to be the marquee Senate race this cycle, could have trickle-down effects in Texas, Austin personal injury attorney Adam Loewy reasons.
“If Graham Platner does in fact drop out, [Talarico] is gonna raise about $200,000,000,” he posted on social media. “All the money will shift to Texas. It will be the premier race.”
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SCHATZLINE’S NEW GIG
State Rep. Nate Schatzline resigned from the Texas House on Thursday to join Gov. Greg Abbott’s office as an adviser on election integrity policy, a slightly different plan than what had been floated in Austin circles for the Fort Worth Republican.
In the month since Jane Nelson announced her retirement as secretary of state, the word from Capitol insiders is that Abbott’s rumored choice to succeed her is “Schatzline,” followed by the caveat, “and it makes no sense.”
Schatzline, a member of the House conservative rabble-rousers, has little experience running an election, the SOS’ key job this year. Additionally, that office has typically leaned into the agency’s nonpartisan roles, from overseeing business registrations to international relations, while avoiding partisan politics. Abbott’s past choices have largely reflected that, and picking Schatzline would have deviated from that precedent.
However, picking Schatzline would have also thrown a major bone to the Texas GOP’s right flank, as the party focuses on election integrity and sues the SOS in a bid to close its primaries. It also would’ve been a nice landing spot after Lt. Gov. Dan Patrick’s operation lined up behind Leigh Wambsganss in SD-9, blocking Schatzline’s path to the Texas Senate.
Yet, one problem, first reported by the Dallas Morning News’ Aarón Torres, is that the secretary of state received a pay bump under the general appropriations bill this biennium, going from salary group 4 to 5 in a 44% pay raise from $197,415 to $285,000. Based on Article 3, Section 18 of the Texas Constitution, that would make state lawmakers ineligible for the position.
So, Schatzline ended up in an election-adjacent position.
“Nate Schatzline is a dedicated conservative leader with a proven record in the fight for election integrity,” Abbott said in a press release. “His experience in the Texas House and service in the Trump Administration will be a tremendous asset as we protect the voices of Texas voters.”
But as the “lead” on election integrity “policy development and legislative strategy efforts,” how much help will Schatzline provide on legislative strategy during the 90th Legislature? He was part of the group who resisted House Speaker Dustin Burrows and his leadership team. And when it comes to passing election integrity legislation, the key lawmakers will be moderate Republicans — the very Republicans who would be least amenable to Schatzline.
Nelson retires next Friday, July 17. Chop-chop, governor.
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DATA CENTER ADS COMING DOWN THE PIKE
Texas Connects has placed $902,000 in broadcast ads to begin later this month, the pro-data center group’s first television ads of the election, according to AdImpact.
The nonprofit, affiliated with the Data Center Coalition industry group, is scheduling ads from July 20 to Dec. 13, tamping down data center opposition as the issue heats up for the midterms and the 2027 legislative session.
This month, Texas Connects launched a series of ads touting that businesses are “rethinking how they build data centers” regarding energy, water and tax policy. Those ads rolled out the day after Gov. Greg Abbott called for a ban on data center development in rural communities, and three weeks after the governor announced his plans for data center regulations.
In a statement last month, the Data Center Coalition Vice President Dan Diorio said the group welcomed the governor’s proposals, saying the industry already follows many of the recommended practices.
Energy and water usage have been top public concerns about data centers, but the tax revenue angle hasn’t been explored as much. Abbott’s plan called for repealing data center sales tax exemptions and “other outdated or unnecessary incentives for data centers.” Lt. Gov. Dan Patrick’s interim charges for the Senate include studying the “cost and consequences” of the sales tax exemption for data centers, which is projected to reach $3.3 billion in tax savings for the 2028-29 biennium.
The tax policy ad says state and local tax revenue from data centers funds schools, roads and first responders.
The Data Center Coalition includes members like Amazon, Google, Microsoft, Meta, Anthropic, OpenAI and plenty more.

Lt. Gov. Dan Patrick and House Speaker Dustin Burrows wrote a letter to Texas Health and Human Services Executive Commissioner Stephanie Muth, the University of Texas Medical Branch’s Jochen Reiser and the University of Texas Health Science Center at Houston’s Melina Kibbe on expediting ibogaine research.
This week
The Senate Health and Human Services Committee, chaired by Sen. Lois Kolkhorst, R-Brenham, will meet at 10 a.m. tomorrow to hear invited testimony on:
THC, including its effect on healthcare and criminal justice costs
Mental health and homelessness services
Mental health services from the Texas Child Mental Health Care Consortium
The Senate Health and Human Services Committee will meet again at 8:30 a.m. Wednesday to hear invited and public testimony on:
The House Subcommittee on Defense and Veterans’ Affairs, chaired by Rep. Philip Cortez, D-San Antonio, is headed to San Antonio at 11 a.m. Wednesday for an off-site meeting to take invited and public testimony on:
Veteran mental health programs
Legal representation for veterans
Redevelopment of the former Kelly Air Force Base (invited testimony only)
There are at least 248 data center projects planned across the state. While industry leaders promise economic gains, some residents fear the pressure data centers could put on Texas’ already strained resources.
We’re bringing together experts from across the state for a conversation on the ways data centers are reshaping Texas communities. We’ll look at the ways local and state officials are responding to the development boom, what power they really have to regulate, or incentivize, data center projects, and how Texans can stay informed.
The one-hour virtual event begins at noon Wednesday, July 22.
Thank you to the Pulitzer Center for providing support for this event.

TX-SEN: Attorney General Ken Paxton’s campaign is hitting state Rep. James Talarico for his votes against various tax relief measures in the Legislature, grouping him “with the likes of his socialist comrade Bernie Sanders.”
TX-SEN cont’d: Talarico placed another $896,000 in broadcast ads for the coming week, including $499 in Spanish ads in the Harlingen market, according to AdImpact. That raised his total for the general election to $9.6 million.
TX-15: Tejano star Bobby Pulido, the Democratic nominee challenging U.S. Rep. Monica De La Cruz, R-Edinburg, had former U.S. Rep. Mayra Flores, R-Los Indios, on his podcast. Pulido asked her about social media posts this year in which she said the Trump administration and Republicans weren’t investing enough to win the Hispanic vote and were in danger of losing in November. “Absolutely, Republicans have to invest in the Hispanic community,” Flores affirmed.

Toyota launched a second vehicle assembly line in San Antonio. Gov. Greg Abbott announced the move, and the fact that it qualified under the Texas Jobs, Energy, Technology, and Innovation (JETI) program.
The U.S. Supreme Court declined to block Texas’ app age verification bill, the App Store Accountability Act. Read more from the Tribune’s Paul Cobler and Alex Nguyen.
The Texas Stock Exchange started trading. Read more from Cobler.
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“As Democrats eye South Texas upset, Bobby Pulido faces scrutiny over ex-bandmate’s child sex offense,” by Gabby Birenbaum of The Texas Tribune
“Rising healthcare costs are straining Texas businesses as the Legislature seeks solutions,” by Paul Cobler of The Texas Tribune
“Trump’s Religious Liberty Commission presents recommendations, including clarifying ‘separation of church and state,’” by Mary Elise O’Bar of The Texan
Op-ed: “Texas can’t keep giving a free ride to water-thirsty data centers,” by the Houston Chronicle Editorial Board (Gift link)
In memoriam: “Former U.S. Rep. Bill Archer dies at 98,” by Alex Nguyen of The Texas Tribune

Do you or someone in your office have a birthday you’d like mentioned? Email us.
(July 6) Former President George W. Bush
(July 6) Former reporter Gardner Selby
(July 7) State Rep. Philip Cortez, D-San Antonio
(July 7) Lobbyist Karen Johnson Rove
(July 7) Former Ambassador, Railroad Commissioner and Secretary of State Tony Garza
SPONSOR MESSAGES
Episcopal Health Foundation helps drive a North Texas maternal health effort, improving outcomes through partnerships and smarter ways to pay for care.
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Disclosure: Adam Loewy, Google, Microsoft, Politico and the University of Texas Medical Branch at Galveston have been financial supporters of The Texas Tribune, a nonprofit, nonpartisan news organization that is funded in part by donations from members, foundations and corporate sponsors. Financial supporters play no role in the Tribune's journalism. Find a complete list of them here.








