Texas’ Fossil Fuel Investment Boycott Ban Struck Down by Judge

Feb. 5, 2026, 1:35 AM UTC

A Texas law prohibiting state entities from investing in companies that boycott fossil fuels was struck down as unconstitutional by a federal district court Wednesday.

Judge Alan D. Albright of the US District Court for the Western District of Texas said the 2021 law, SB 13, violates the First Amendment by penalizing “companies for all manner of protected expression concerning fossil fuels.”

It’s also unconstitutionally vague in violation of the Fourteenth Amendment, Albright said in his opinion ruling in favor of the American Sustainable Business Council, which sued the state in 2024.

“The court has affirmed what we’ve always known: ...

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