General information only, not financial or legal advice. Checked October 2026.
Texas keeps an official list of financial companies that its law says refuse to do business with energy firms. On June 3, 2025, the state comptroller updated that list and took BlackRock off it. The screening rules for certain public investments stayed. The list isn’t set in stone: firms can be added or removed after review, and other states use related but different rules.
What the Texas Law Actually Does
Texas Government Code Chapter 809 directs specified public pension and investment entities to address holdings in financial companies determined to boycott energy businesses. The comptroller maintains and periodically updates a list using statutory definitions and public information.
In February 2026, a federal district judge in Texas declared the law, Senate Bill 13, unconstitutional and blocked its enforcement, but on May 29, 2026, the U.S. Court of Appeals for the Fifth Circuit paused that ruling while Texas appeals, so the state can enforce the law for now (district court order; Fifth Circuit order).
The policy’s purpose, according to supporters, is to prevent investment of public funds in firms that discriminate against fossil-fuel companies for reasons unrelated to ordinary financial risk. Texas has a large oil and gas industry, so state officials consider access to financing an important economic issue.
The word blacklist can be misleading without explanation. Being listed under one statute does not mean every Texas resident is prohibited from opening an account at the firm. The consequences attach to defined government activities and investment holdings, subject to statutory procedures and qualifications.
Texas also maintains other divestment lists under separate laws. A company appearing on an energy-related list should not be assumed to appear on a firearms-related or other list.
Why BlackRock’s Removal Was Noteworthy
The Texas comptroller’s June 2025 announcement said BlackRock had been removed from the list of companies the state treats as boycotting energy under its statute. The release also described a decrease in the number of listed investment funds.
This is a useful before-and-after fact because BlackRock had become a prominent subject in state disputes over ESG investing. Its removal illustrates that the review mechanism can respond to changed evidence, investment policies or public statements.
It does not establish that BlackRock ceased every climate-related investment strategy. The company still offered multiple funds with different mandates. The comptroller’s office applied its review process to the information available at each update.
Texas publishes the current list and a frequently asked questions document on the comptroller’s divestment page. That source is more reliable for present status than an older social-media screenshot that may have been accurate only at the time it circulated.
How Other States Differ
Kentucky’s legislation directs the state treasurer to maintain a list of financial companies determined to boycott energy companies and establishes divestment procedures for state entities. Oklahoma enacted an Energy Discrimination Elimination Act with its own list and public-fund provisions.
Idaho has taken a different approach, focusing on fiduciary investment decisions and limits on considering nonfinancial ESG goals. Texas’s own comptroller summarized these differences in a 2023 policy review.
It is inaccurate to describe every state law as a universal ban on ESG investing. Some restrict investment decisions for certain state accounts. Others set conditions for public contracts or require fiduciaries to prioritize financial returns. Definitions, exemptions, enforcement and litigation outcomes vary by jurisdiction.
State officials also weigh practical issues. Changing a manager or fund can involve transaction expenses, and public fiduciaries must manage retirement assets prudently within the statute.
Any estimate that these laws automatically save or cost taxpayers a particular amount requires transparent methodology, comparable alternatives and a time period.
The Argument For and Against Restrictions
Supporters argue that public money should pursue the financial interests and legal policy choices of the state, not finance coordinated campaigns against lawful industries central to its economy. They view transparency requirements and divestment authority as tools for accountability.
Opponents argue that pension managers need flexibility to evaluate all material risks, including energy market changes, climate exposure and governance problems. They caution that political rules can restrict competition among banks and investment products.
There is a distinction between assessing an oil company’s future cash flow and refusing to invest in an entire sector as a matter of ideology.
For the public, the relevant question is whether a restricted decision protects a pension’s risk-adjusted return or imposes extra costs. That can only be evaluated with the actual holdings, mandates, bids and performance data.
What Consumers Should Verify
Residents who want to track the rules should begin with the current comptroller list, the governing statute and public pension disclosures. Check the publication date of each list, the exact legal name of the company and whether the action affects the parent company or a specific fund.
Before concluding that a bank cannot operate in a state, examine the legal scope. Rules for a state pension portfolio are not necessarily rules for personal checking accounts, mortgage loans or private brokerage assets.
The BlackRock change in 2025 is evidence that updates matter. A company labeled in 2022 may have a different status in 2026, and a fund name alone may not identify its manager or investment strategy accurately.
Check the Current List Before You Share It
State anti-ESG laws put real obligations on designated public investments, and their reach differs by state. Check the current official list, not an old screenshot. Then pick financial firms whose policies fit your priorities.
Want to see which companies have earned a D or F on our woke scorecard? See the Boycott List.
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