Texas court ruling against anti-ESG law could trigger similar challenges across the United States
A federal judge recently struck down a Texas law targeting ESG-focused firms. Analysts believe the ruling will spark challenges to similar laws in other states.
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A federal judge in the US 
US ruled today, February 10, 2026, that the Energy Discrimination Elimination Act is unconstitutional, finding that the law violated First Amendment free-speech protections. The decision struck down the Texas law that blacklisted financial firms for using environmental, social, or governance (ESG) factors. Analysts and stakeholders say the ruling provides a legal basis to challenge similar anti-ESG laws in other states and bears directly on the enforcement of state restrictions on investor use of ESG and climate-related considerations.
US ruled today, February 10, 2026, that the Energy Discrimination Elimination Act is unconstitutional, finding that the law violated First Amendment free-speech protections. The decision struck down the Texas law that blacklisted financial firms for using environmental, social, or governance (ESG) factors. Analysts and stakeholders say the ruling provides a legal basis to challenge similar anti-ESG laws in other states and bears directly on the enforcement of state restrictions on investor use of ESG and climate-related considerations.The Texas state government enacted the Energy Discrimination Elimination Act in 2021, and since then, about 14 other states have enacted similar measures. Data shows that 26 anti-ESG bills were at various stages across different states, making this federal court decision of structural importance for multiple statutes and ongoing legislative efforts. The ruling effectively limits the ability of Texas state agencies/local authorities to enforce restrictions on financial institutions based on their use of climate-related criteria.
