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.

Challenge to a Texas 2021 law that prohibits certain State entities from investing in or contracting with companies that “boycott fossil fuels.” 

American Sustainable Business Council v. Hegar

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Fifth Circuit Stayed Injunction that Blocked Enforcement of Texas Prohibition on State Business with Companies that “Boycott Fossil Fuels”

Filed

United States of America

Texas

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Policy instruments are techniques or tools used by governing authorities to promote certain policies in order to achieve predetermined goals. Put simply, instruments are how a government tries to achieve its goals, with this taxonomy being focused on national policy instruments.

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Fifth Circuit Stayed Injunction that Blocked Enforcement of Texas Prohibition on State Business with Companies that “Boycott Fossil Fuels”

Policy instrument

Economic sector