Overview
- U.S. District Judge Alan D. Albright granted summary judgment for the American Sustainable Business Coalition and ruled SB 13 unconstitutional under the First and Fourteenth Amendments.
- The order enjoins Texas from implementing or enforcing the statute after the court found it facially overbroad, impermissibly vague, and prone to arbitrary application.
- Albright criticized undefined terms including “limit commercial relations” and “any action” and noted companies could be penalized for viewpoints or associations.
- SB 13 mandated a state list of firms deemed to boycott fossil fuels, required contractual assurances and 90-day cure periods, and spurred major state funds to divest billions as the list grew past 300 companies.
- Reporting cited sizable impacts on targeted firms, including a Texas withdrawal reportedly totaling about $8.5 billion from BlackRock, which the comptroller later removed from the blacklist in June 2025.