Texas Anti-ESG Law Ruled Unconstitutional

Reference TimelineLast updated APR 18
SUMMARY

On February 4, 2026, U.S. District Judge Alan Albright declared Texas Senate Bill 13, an anti-ESG law, unconstitutional, citing violations of the First and Fourteenth Amendments due to its overly broad and vague definition of "boycott." As of April 1, 2026, a federal judge denied Texas's motion to stay an injunction against Senate Bill 13, preventing the state from enforcing the law while an appeal proceeds. The law, which became effective on September 1, 2021, prohibits state agencies and public pension funds from investing in financial companies that limit business with the oil and gas industry. The American Sustainable Business Council filed a lawsuit challenging the law's constitutionality on February 1, 2024.

Timeline

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Timeline of developments

April 2026 1 developments

  1. A federal judge denied Texas's motion to stay an injunction against Senate Bill 13, preventing the state from enforcing the anti-ESG law while an appeal proceeds.

    A federal judge denied Texas's motion to stay an injunction against Senate Bill 13, preventing the state from enforcing the anti-ESG law while an appeal proceeds. The law, which targeted financial companies boycotting fossil fuels, was previously declared unconstitutional by U.S. District Judge Alan Albright.

February 2026 2 developments

  1. A federal judge has declared Texas Senate Bill 13, an anti-ESG law, unconstitutional.

    A federal judge has declared Texas Senate Bill 13, an anti-ESG law, unconstitutional. The ruling states that the law violates the First Amendment's free speech protections. The judge found the law's definition of 'boycott' to be overly broad and vague, and noted the potential for discriminatory enforcement.

February 2024 1 developments

August 2022 1 developments

September 2021 1 developments

April 2021 1 developments