WeVote
Log In

Bill

Bill

SB 2138

Relating to prohibiting the investment of the permanent university fund, the Texas University Fund, or money held by a public institution of higher education in financial companies that boycott certain energy companies.

89th Legislature (2025) Introduced by Donna Campbell and 4 co-sponsors

Texas bill bars public universities from investing endowment funds in financial companies that divest from energy sector, restricting divestment-based investment strategies.

Committee report sent to Calendars
#education--higher--finance(i0232) #energy--general(i0315) #permanentuniversityfund(s0497) #statefinances--appropriations(i0746)
0
WeVote Research Nonpartisan
Bill Summary · SB 2138

Legislative bill overview

SB 2138 prohibits Texas public universities and their endowment funds (the Permanent University Fund and Texas University Fund) from investing in financial companies that boycott energy companies—primarily targeting fossil fuel divestment practices. The bill effectively prevents universities from using investment decisions to advance environmental or social policy objectives related to energy sector companies.

Why is this important

University endowments represent billions in assets that influence corporate behavior through investment decisions. This bill restricts how Texas universities can deploy those assets, potentially limiting their ability to align investments with stated sustainability goals and directly challenging the growing divestment movement. It also raises questions about institutional autonomy in financial decision-making versus state legislative control.

Potential points of contention

  • Institutional autonomy vs. state control: Universities argue investment decisions should reflect fiduciary duty and institutional values; opponents contend the state should dictate investment policy for state-funded assets
  • Definition of "boycott": The bill's language on what constitutes boycotting energy companies could be ambiguous, creating enforcement and compliance challenges for fund managers
  • Market efficiency argument: Critics argue excluding certain investment opportunities based on political criteria may limit returns and harm long-term endowment growth; supporters counter that energy investments face genuine financial risk

Compiled from official sources — confirm details with the bill’s official record.

Sign in to ask a question.