In Texas, a new legislation signed by Governor Greg Abbott explicitly bans the investment of public funds in nations labeled as 'countries of concern' and any private companies controlled by these nations. This law, known as HB 34, includes notable countries such as China, Iran, North Korea, and Russia, while also granting the governor the authority to designate additional countries as needed.

The legislation was passed by both the Texas House and Senate in May 2025 and signed into law shortly thereafter. Its primary aim is to ensure that public financial resources, which include state investment funds, do not support regimes that might pose national security threats or are perceived as adversarial to United States interests. As a result, firms operating under these countries could be impacted significantly since they may need to appeal their inclusion on the no-invest list to continue operations in Texas.

This move reflects a growing trend among U.S. states to take a firmer stance against foreign entities deemed problematic, particularly amid rising geopolitical tensions. Texas's action may have ripple effects, prompting similar measures in other states, and underscores the increasing intertwining of public finance with national security considerations in contemporary legislation.