Texas Anti-ESG Law Ruled Unconstitutional

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SUMMARY

The Fifth Circuit Court of Appeals on May 29, 2026, stayed a preliminary injunction against Texas's anti-ESG law, SB 13, allowing its enforcement to resume while an appeal is pending. This decision overturns a February 2026 district court ruling by U.S. District Judge Alan Albright that declared the law unconstitutional, citing violations of the First Amendment's free speech protections. As of May 29, 2026, the Texas Attorney General's office intends to resume enforcement of SB 13, which prohibits state agencies and public pension funds from investing in financial companies that "boycott" the oil and gas industry. The law, which became effective on September 1, 2021, has been challenged by groups like the American Sustainable Business Council.

Timeline

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Timeline of developments

May 2026 1 developments

  1. Texas Anti-ESG Law Enforcement Resumes Pending Appeal After Court Lifts Injunction

    The Fifth Circuit Court of Appeals has stayed a preliminary injunction that had blocked Texas's SB 13, an anti-ESG law, allowing its enforcement to resume while the appeal is pending. This decision follows a February 2026 ruling by a district court that found the law unconstitutional. The Texas Attorney General's office intends to resume enforcement of SB 13.

April 2026 1 developments

  1. Federal Judge Denies Texas's Motion to Stay Injunction Against Anti-ESG Law

    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. Federal Judge Declares Texas 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.

  2. Judge Albright Declares Senate Bill 13 Unconstitutional

    U.S. District Judge Alan Albright declares Senate Bill 13 unconstitutional, citing violations of the First and Fourteenth Amendments. The judge finds the law's definition of "boycott" to be overly broad and vague, and notes the potential for discriminatory enforcement.

February 2024 1 developments

August 2022 1 developments

September 2021 1 developments

  1. Texas Enacts Anti-ESG Law, Prohibiting State Investment in Firms Boycotting Oil and Gas

    Senate Bill 13, also known as the anti-ESG law, becomes effective in Texas. The law prohibits state agencies and public pension funds from investing in financial companies that limit business with or "boycott" the oil and gas industry.

April 2021 1 developments