Judge finds Texas anti-ESG law unconstitutional

By Lesley Clark | 02/05/2026 06:07 AM EST

A federal court has stopped the state from refusing to do business with companies that “boycott” fossil fuels.

Texas State Comptroller Glenn Hegar speaks during a news conference where he released his biennial revenue estimate that will be used to set Texas budget for the upcoming legislative session , Monday, Jan. 9, 2017, in Austin, Texas. (AP Photo/Eric Gay)

Former Texas Comptroller Glenn Hegar has lost a court challenge against a state law designed to bolster the oil and gas industry. Eric Gay/AP Photo

A federal judge has blocked a Texas law aimed at protecting the oil and gas industry, finding that the law is “unconstitutionally vague” and violates the First Amendment right to free speech.

Judge Alan Albright of the U.S. District Court for the Western District of Texas ruled on Wednesday that the 2021 law barring the state from investing in or contracting with businesses that “boycott” fossil fuels is “unconstitutional and unenforceable” because it affects activity protected under the Constitution.

The law’s “definition of ‘boycott energy companies’ permits the state to penalize companies for all manner of protected expression concerning fossil fuels,” wrote the judge, a Trump appointee

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Albright ordered Texas to stop implementing or enforcing the law.

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