# Fifth Circuit Upholds Texas Grid Restrictions

In October 2026, the U.S. Court of Appeals for the Fifth Circuit upheld Texas’s Lone Star Infrastructure Protection Act against federal preemption challenges, allowing Texas to deny Chinese-owned GH America Energy access to the state grid for a solar project. The ruling makes state-level infrastructure restrictions a distinct consideration for energy developers and contractors: CFIUS review or federal clearance does not by itself guarantee access to the Texas grid.

- Energy companies and contractors with foreign ownership or affiliations should evaluate Texas infrastructure restrictions separately from CFIUS review when assessing project eligibility.
- The decision concerns Texas’s existing law and does not resolve every potential conflict between state restrictions and federal review; companies should assess the applicable facts and legal requirements for each project.

**Jurisdictions:** sled
**Industries:** Energy & Utilities
**Topics:** Regulatory Compliance
**Published:** November 03, 2026

### Government Entities
- State of Texas
- U.S. Court of Appeals for the Fifth Circuit (Fifth Circuit)
- Committee on Foreign Investment in the United States (CFIUS)

### Vendors
- GH America Energy (GHAE) (project applicant)

### Sources
- [Texas Can Block Chinese-Owned Energy Companies From Its Grid, Fifth Circuit Rules | Hicks Johnson - JDSupra](https://www.jdsupra.com/legalnews/texas-can-block-chinese-owned-energy-1593480) - JD Supra