Austin, Texas – Ahead of the upcoming interim hearing by the Texas House Committee on Pensions, Investments, and Financial Services, Unlocking America’s Future (UAF) is drawing attention to the costs and risks stemming from Texas’s law blacklisting financial institutions based on whether they affiliate with an extreme political agenda. These laws hurt the financial security of public sector retirees by injecting politics out of pension fund management, as well as local taxpayers who have paid hundreds of millions more for basic services.
“Politicizing the investment of public dollars hits the pocketbooks of every Texas, and threatens the retirement security of those who have dedicated their lives to public service,” said Kyle Herrig, spokesperson for Unlocking America’s Future. “Today, Texas lawmakers need to reflect on the real-world results of an extreme and costly political agenda.”
Key Concerns Ahead of the Hearing:
- Economic Consequences of Blacklisting Firms:
- Senate Bill 13, enacted in 2021, bars certain firms from handling public funds based on their investment strategies, particularly those considering Environmental, Social, and Governance (ESG) factors.
- A study by the Texas Association of Business Chambers of Commerce Foundation found that such blacklisting resulted in $668.7 million in lost economic activity, over 3,000 lost jobs, and $37.1 million in reduced state and local tax revenue.
- Public Opposition to Politicized Investment Policies:
- A majority of Texas voters (56%) oppose banning state retirement funds from working with firms based on political considerations.
- Texans recognize that imposing political agendas on pension funds can negatively impact the economy, energy and gas prices, and their retirement savings.
- Risk to Retirement Security:
- Political interference detracts from fiduciary responsibilities, potentially introducing new risks into pension funds.
- Public employees depend on prudent investment strategies to ensure their financial stability in retirement.
Unlocking America’s Future urges interested parties and members of the media to review our report on the real world impacts of extreme politics, by visiting Textremism.com.
