US judge rules Texas anti-ESG law violates free speech rights

A US judge struck down a Texas law targeting companies that boycott fossil fuels. The ruling found the measure violated First Amendment free speech rights.

A U.S. federal judge on February 5, 2026, declared Texas Senate Bill 13 (2021) unconstitutional, striking down a law that restricted state investments in companies that reduce reliance on or boycott the fossil-fuel industry. Judge Alan Albright alan albright of the U.S. District Court for the Western District of Texas ruled that the legislation violated First Amendment protections and was both overbroad and vague. The ruling prevents the state from enforcing the law as written, directly affecting state investment and business speech rules that had targeted companies with environmental, social and governance (ESG) policies.
A drone view of a pump jack and drilling rig south of Midland, Texas, U.S. June 11, 2025. REUTERS/Eli Hartman
A drone view of a pump jack and drilling rig south of Midland, Texas, U.S. June 11, 2025. REUTERS/Eli Hartman
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