SB 2138 – Closes ESG investment loophole

SB 2138 ensures that public universities and their funds do not invest in financial firms that discriminate against fossil fuel companies through politically motivated ESG policies. It applies existing anti-boycott laws to university funds, closing a loophole that allowed higher education institutions to sidestep the law. This protects taxpayer-backed university funds from underperforming ESG-driven investments and ensures alignment with Texas’ commitment to energy independence and economic security. The bill helps ensure that public resources are invested based on financial merit, not political ideology.