Ken Paxton Caught on Leaked Audio Calling for Benefit Cuts as Lobbyist Seeks Tax Break: 'We Have to Suck It Up'

Republican Senate nominee Ken Paxton has been heard on leaked audio suggesting he would support cuts to mandatory federal spending to tackle the deficit before agreeing with a Washington lobbyist who said she wanted to pay less in taxes.

During a private 24 September fundraiser with lobbyists on Capitol Hill, Paxton said there was no alternative to reducing mandatory federal spending. The remarks were captured in an audio recording obtained by The Texas Tribune, marking the fourth leaked clip from the event.

'Making some reasonable cuts to mandatory spending—you're going to have to do it. Or there is no solution. That's just the reality. We have to suck it up,' Paxton said.

Paxton Says Federal Spending Is 'Gonna Bankrupt Us'

Paxton did not identify which programmes he would target or say how much spending he would seek to reduce. His campaign also did not answer questions from The Texas Tribune about which benefits could be affected.

Mandatory spending includes some of the federal government's biggest benefit programmes. Around three-quarters of mandatory federal spending went towards Social Security, Medicare, and Medicaid in the most recent fiscal year, according to the Congressional Budget Office. Other mandatory spending includes programmes such as unemployment insurance, food assistance, and retirement and disability benefits for federal workers and veterans.

Paxton also warned that federal spending would eventually bankrupt the country, saying, 'From Republican presidents to Democrats, we've been spending like crazy, and no one seems to care. It's gonna bankrupt us. It's just a matter of time.' The federal deficit totalled $1.8 trillion in fiscal year 2025, according to the Congressional Budget Office.

Lobbyist Wants to Pay Less Tax

Paxton described his approach as combining cuts to mandatory spending with tax policies he said would encourage spending and production. 'There's no doubt we have to cut some of the mandatory spending,' he said. 'The numbers don't add up. And then on the other side, we've got to create tax policy that incentivises more spend, more production in our economy.'

That was followed by an exchange with lobbyist Jeanne Haggerty, who said she wanted to pay less in taxes. 'I would really like to pay my fair share of taxes, which is less than I'm paying right now,' Haggerty said, prompting laughter from the room.

Paxton replied: 'I'm with you on that.' Haggerty did not respond to a request for comment, according to The Texas Tribune.

Another Leak Adds Pressure

Paxton's remarks come as Washington confronts the long-term financing challenges facing major entitlement programmes. Social Security and Medicare trust fund reserves are projected to be depleted within the next decade, according to federal projections. Paxton has rarely discussed his position on entitlements on the campaign trail.

The recording is the latest in a series of leaked clips from the same gathering. In an earlier recording published by The New York Times, Paxton said the Republican Party's midterm convention in Dallas had hurt his campaign's numbers. In another clip published by Politico, he complained about Washington's influence over his race.

The 24 September meeting was hosted by Susan Hirschmann and Chris Brinson of Washington lobbying firm Williams & Jensen on Capitol Hill and attended by roughly a dozen people, mostly lobbyists. An invitation described it as a lunch with Paxton for which 'donations are welcomed but not required for attendance.'

With Democrat James Talarico holding a narrow lead in several recent public polls and early voting set to begin on 19 October, the leaked comments add to scrutiny of Paxton's views on federal spending and tax policy.