An education foundation is trying to drop its lawsuit against State Rep. Terri Leo Wilson. The foundation sued her after she questioned the nature of the relationship between the nonprofit and its adjacent school district, alluding to potential illegal activity in the foundation operations.
Wilson (R–Galveston) says she has no intention of allowing the foundation to get away that easy.
The Barbers Hill Education Foundation originally sued Leo Wilson, in her personal capacity, on February 11, seeking a temporary restraining order, temporary injunction, and a permanent injunction against Leo Wilson, arguing that her allegations would “irreparably tarnish” the foundation’s “good name and charitable purposes.”
On Monday, the Barbers Hill Education Foundation filed a “notice of nonsuit” with the 344th District Court in Chambers County.
Barbers Hill Education Foundation (BHEF) is a nonprofit that advertises itself as supporting Barbers Hill ISD. BHEF can send donor money to educators in the form of grants.
Before the suit, Wilson criticized Nathan Watkins, her opponent in the March 2026 Republican primary. Watkins is a director of BHEF and vice president at Americus Holdings. In January, it was widely reported that BHEF bought property from Americus for more than $6 million, and the two partnered to develop a luxury apartment complex.
“I think based on what I have discovered between the ISD and the education foundation and his directorship of the foundation that he is running to make legal what may be illegal,” Leo Wilson stated.
The lawsuit brought attention to the relationship between Barbers Hill ISD and BHEF. The school district’s 2024 audit noted that it “maintains the Foundation’s accounting records” for a fee, and included BHEF in its audit as a “discretely presented component unit” that is supposed to be a “legally separate” entity.
“The district can’t handle a nonprofit’s books, and the district can’t sell services,” said Dr. Mary Bone. As a former Round Rock ISD trustee, she has experience dealing with the relationships between school districts and adjacent foundations.
There is significant crossover between BHEF and Barbers Hill ISD staff. Half of the foundation’s leadership are current or former school district leaders, including Superintendent Greg Poole. BHEF admitted in its lawsuit filing that “Barbers Hill ISD Board of Trustees exercises significant control by virtue of the membership of the Education Foundation’s governing board.”
Bone has also raised questions about BHEF’s financial management. On February 18, she posted that of the more than $29 million in revenue from Fiscal Year 2021, BHEF gave back to the district 2.3 percent in the form of grants. It was also widely reported that from 2019 to 2021, the district sent more than $41 million to BHEF.
While BHEF is seeking to drop its lawsuit, Leo Wilson must agree since she previously filed a motion to dismiss under the Texas Citizens Participation Act.
“My opponents are getting desperate. I have raised several important questions on behalf of taxpayers and my constituents,” she told Texas Scorecard. “They are now trying to no suit, after we put an anti-slapp on them. I look forward to the dismissal hearing on April 7. We will not be accepting the no suit.”
Fort Worth Attorney Tony McDonald believes BHEF is in the wrong. “The foundation should be sanctioned for abusing the legal system to sue Rep Leo-Wilson with nonsense legal claims. The people responsible for this ridiculous lawsuit should be ashamed for filing a frivolous lawsuit to try to influence an election.”
BHEF did not respond to a request for comment before publication.
This is a developing story.
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