In a major victory for Houston’s immigrant rights community, the State of Texas dismissed its lawsuit against FIEL Houston Inc. on November 9, 2026, bringing an end to a legal battle that had threatened to dissolve the nonprofit’s charter.
Previous story: Appeals court allows Paxton to move forward with case against FIEL Houston
Attorney General Ken Paxton filed suit against FIEL Houston — accusing the nonprofit of violating federal 501(c)(3) rules. Specifically, the state alleged FIEL crossed legal lines by urging people not to vote for former President Donald Trump and by opposing border-security legislation.
Under Texas law, the state can seek to dissolve a nonprofit’s charter if it believes the organization violated federal or state requirements — even though revoking federal tax-exempt status is handled separately by the IRS.
The case gained momentum in October 2025, when a Texas appeals court reversed a lower-court ruling that had blocked Paxton from moving forward. That decision sent the case back to state district court, where FIEL — represented by the Mexican American Legal Defense and Educational Fund (MALDEF) — prepared to fight back.
More than a year after the appeals court ruling, the state dropped the case entirely.
FIEL Executive Director Cesar Espinosa responded with a statement:
“History will remember who was on the right side and on the wrong side of it. Today proves once again that we continue to be on the right side of History. This lawsuit has been very burdensome for us as an institution. Now that this is over, we can return to committing 100% of our time and energy to protecting, educating, and empowering our community. We want to thank MALDEF for their unwavering support and all of our supporters who have never left our side.”
Constitutional law professor Josh Blackman of South Texas College of Law Houston had previously noted the case could set a significant precedent for nonprofits and advocacy organizations across the state.
“There are two things nonprofits usually can’t do: endorse political candidates and lobby for or against legislation,” Blackman explained during the case. “Groups engaging in public advocacy have to be very clear about not crossing those lines.”
Faith communities were also watching closely. Reverend Heather Tolleson of First Christian Church in Katy said the uncertainty extended to churches engaged in advocacy work. “It feels like some groups are held to one standard and others to another,” she said.
With the dismissal, those concerns — at least in this case — are now resolved.
FIEL says it’s ready to refocus entirely on its mission. The organization advocates for just immigration laws, access to higher education regardless of immigration status, and the rights of people in vulnerable situations.
“There’s better things to do out there than to go into legal battles,” Espinosa had said during the height of the case — and now, the organization can do exactly that.
