Federal Court Halts Corporate Transparency Act, Impacting Small Businesses Nationwide

Texas secured two legal victories against federal regulations. A federal judge ruled the Corporate Transparency Act unconstitutional, blocking its reporting requirements for small businesses. The act mandated disclosure of personal information to the Treasury, which Texas argued infringed on state authority. Separately, Texas won a case against the U.S. Department of Health and Human Services, which had sought to enforce a rule allowing minors to receive contraceptives without parental consent, violating Texas law. The Biden administration conceded, ensuring Texas health entities comply with state law.