American Sustainable Business Council v. Hegar

In 2021, Texas enacted SB 13, a law that prohibits certain State entities from investing in or contracting with companies that “boycott fossil fuels.” In February 2026, a federal district court in Texas enjoined enforcement of the law, ruling that it violated the First Amendment and was unconstitutionally vague. On May 29, 2026, in a one-sentence published order, the Fifth Circuit Court of Appeals granted the Texas Comptroller of Public Accounts and Texas Attorney General’s motion to stay pending appeal the district court injunction. Judge Ho wrote a concurrence, stating that “S.B. 13 is about spending, not speech,” and that “[t]he Constitution permits—and citizens expect—government agencies to care about how public funds are used. State officials have the right to champion nondiscrimination by refusing to engage with those who discriminate. They’re allowed to boycott those who boycott others.” The Comptroller and Attorney General filed their opening brief in the Fifth Circuit on May 4, 2026. The brief of appellee American Sustainable Business Council is due on July 2.