This week brought welcome news for Texas families and businesses as four dangerous anti-responsible investing bills died in the Texas Legislature, killing dangerous policies that would have forced financial institutions to ignore material risks and left Texans at risk and undermining sound investment practices.
The failed legislation—Senate Bills 2138, 945, 946, and 495—however, are just one part of an unprecedented attack on responsible investing in Texas. The defeat of these bills marks a significant victory for Texas shareholders, and protects university endowments and the state’s economic competitiveness.
“We’re definitely celebrating the death of these egregious bills, but we also know the fight isn’t over yet,” said Kyle Herrig, Spokesperson for Unlocking America’s Future. “These proposals represented massive government overreach, forcing universities, insurance regulators, and financial institutions to ignore financial risks and abandon commonsense investment strategies—all to serve a political agenda. Their failure isn’t just a big win for Texas families, it’s proof that anti-responsible investing legislation fails because it’s bad policy.”
Bills That Died This Week in Texas
- Senate Bill 2138 – University Endowment Restrictions: Would have extended anti-responsible investing restrictions to UT/A&M permanent university funds and other public higher education investments, stripping educational institutions of their autonomy to avoid riskier investments and threatening financial resources for scholarships, research, and academic programs.
- Senate Bill 945 – Shareholder Proposal Restrictions Would have prohibited shareholder proposals involving insurance limitations for fossil fuel companies, greenhouse gas emission disclosure, or responsible investing considerations, falsely categorizing them as “political”—undermining shareholder rights and preventing consideration of material climate risks.
- Senate Bill 946 – Credit Extension Restrictions Would have banned lenders from denying loans or credit on the basis of responsible investing risks, forcing financial institutions to ignore known risks when making loans, potentially threatening financial stability.
- Senate Bill 495 – Insurance Regulation Restrictions Would have prevented the Texas Department of Insurance from adopting rules based on responsible investing models or standards, undermining the insurance industry’s ability to properly assess climate and other material risks.
What These Bills Would’ve Cost Texans
If passed, this harmful package would have:
- Forced universities to maintain investments in potentially underperforming assets
- Prevented insurance regulators from properly assessing climate risks
- Required lenders to ignore legitimate risk factors in loan decisions
- Stripped away shareholder rights to address material financial risks
- Put Texas at a competitive disadvantage in attracting future-focused industries
Far-Right Lawmakers Continue to Put Politics over People
While the death of these four bills represents progress, UAF continues monitoring the remaining anti-responsible investing legislation still moving through the Texas Legislature. UAF calls on Texas lawmakers to reject the remaining anti-responsible investing bills and protect the financial wellbeing of everyday Texans.
For more information about Texas’ broader assault on responsible investing and its impacts on families, visit here.
