Continued Injunction Against SB 261 Enforcement and CARB's Undetermined Alternative Reporting Date

On November 18, 2025, the Ninth Circuit Court of Appeals granted a preliminary injunction against enforcement of SB 261, while denying the request to enjoin SB 253. Because of this injunction, the January 1, 2026 initial reporting deadline originally set under SB 261 has become effectively unenforceable. In response, CARB has confirmed that it will not enforce the January 1, 2026 deadline for SB 261 and has stated that it will announce an alternative reporting date once the appellate ruling is finalized.

The injunction does not invalidate SB 261 itself; it merely suspends enforcement pending the appellate ruling. At the district court level, the plaintiffs' (including the U.S. Chamber of Commerce) claims regarding violation of the dormant commerce clause and the federal Supremacy Clause have already been dismissed, and the sole issue before the appellate court is whether mandating disclosure of climate-related financial risk violates the First Amendment's prohibition on compelled speech. Oral arguments were held on January 9, 2026, but as of August 2026, a ruling remains pending.

Separately, on October 24, 2025, another First Amendment-related lawsuit targeting both SB 253 and SB 261 was newly filed, meaning multiple pieces of litigation are now proceeding in parallel. Should the injunction be lifted, the reporting obligation is expected to resume promptly; covered companies (those doing business in California with total global annual revenues exceeding $500 million) are therefore advised to continue their preparation even during the period the injunction remains in effect.