OPINION:
President Trump’s energy agenda has always been straightforward: unleash American energy, lower costs for consumers, and ensure our grid is strong, stable and secure. It’s an agenda rooted in common sense and one I proudly advanced as secretary of energy.
However, a misguided Texas lawsuit now risks undermining that agenda by threatening to pull billions of dollars in investment out of our energy markets, starting with coal.
The lawsuit, filed by the Texas attorney general, accuses major investment firms — BlackRock, State Street and Vanguard — of violating antitrust law by “coordinating” to reduce coal production. Their supposed weapon? Environmental, social and governance-related investment practices. Yet instead of offering a market-based fix, the lawsuit pushes an extreme remedy: force these firms to divest entirely from coal-related assets.
Let me be clear: That’s not conservative. That’s not pro-business. And it’s certainly not pro-energy dominance.
The truth is that coal production in the U.S. has declined because of market forces, primarily the rise of low-cost, abundant natural gas. That’s what competition looks like. The U.S. energy mix has evolved because consumers and businesses have demanded affordable, reliable power. Under Mr. Trump’s leadership, we have embraced that with an all-of-the-above strategy that has made America the world’s top energy producer.
That leadership is now more critical than ever. The International Energy Agency projects that U.S. electricity demand will more than double by 2030, thanks largely to data centers and artificial intelligence. That surge will require serious investment in generation, transmission and infrastructure.
However, you can’t build out a 21st-century energy grid while playing politics with capital markets.
If successful, this lawsuit could force an estimated $18 billion in coal-related holdings off the books of these major asset managers. That’s not just numbers on a spreadsheet; it’s a direct threat to coal companies’ ability to raise capital, finance infrastructure and support jobs.
The ripple effects won’t stop with coal. The uncertainty created by the lawsuit sends a chilling message to investors considering energy projects across the board. Many infrastructure projects have already been delayed or canceled because of market uncertainty. The last thing America needs is a legal precedent that discourages long-term energy investment.
Interestingly, attorneys general from coal-producing states such as Kentucky, Ohio, Pennsylvania and Virginia have stayed out of the lawsuit entirely. Why? Because they understand the damage it could do to their states’ economies and our nation’s energy future.
As a former governor of Texas, I’ve long believed our state should lead with policy grounded in opportunity and optimism. Texas is the beating heart of America’s energy economy. We don’t succeed by limiting access to capital or tying the hands of investors. We succeed by letting markets work, supporting innovation and welcoming investment.
That’s why this lawsuit is so troubling. It risks branding Texas as hostile to capital precisely when we should be sending the opposite message. Asset managers, acting as fiduciaries, must assess long-term risks, including regulatory and environmental factors. That’s not a conspiracy; it’s prudent investment management.
Mr. Trump’s “Unleashing American Energy” executive order and his declaration of a national energy emergency reflect the importance of having every energy tool available. Coal still plays a vital role in grid stability and power generation in many regions. Although natural gas has become the dominant force, that doesn’t mean coal should be forced out of the market entirely, especially not by government overreach.
This is a time to encourage more energy production, not less. A time to attract investment, not drive it away. And a time to build infrastructure, not bury it in litigation.
The goal here should be simple: Deliver reliable, affordable American energy. That means removing regulatory roadblocks, promoting investment and letting the market work. Lawsuits like this one only distract from the mission and risk slowing down the very momentum Mr. Trump has worked so hard to build.
It’s time for Texas and the rest of the country to double down on smart energy policy, not sabotage it.
• Rick Perry is the former U.S. secretary of energy and a former governor of Texas.
