Sponsors (14)
The bill substantially improves federal data, coordination, and climate-aware supervision to reduce systemic financial risk and protect taxpayers and consumers — but it increases compliance and reporting costs, raises privacy and market-access risks for high-risk areas, and introduces governance and implementation trade-offs that may shift costs to consumers and complicate state-federal/regulatory relations.
Banks, insurers, and the broader financial system will face stronger, climate-aware oversight and planning that reduces the likelihood of catastrophic failures and taxpayer-funded bailouts.
Homeowners, consumers, regulators, and policymakers will get better data and analysis (including ZIP-code insurance risk reporting and Office of Financial Research studies) to understand local climate-driven insurance and financial exposures.
Banks, large credit unions, nonbank financial firms, and insurers will benefit from more consistent, coordinated guidance across federal agencies and with state regulators, lowering cross-jurisdictional compliance uncertainty.
Banks, insurers, federal agencies, and taxpayers will face higher compliance and administrative costs from new reporting, committees, and supervision—costs that are likely to be passed on to consumers and insureds.
Residents in high-climate-risk areas (including rural communities) may see higher premiums, more nonrenewals, or insurers withdrawing coverage as granular reporting and stricter underwriting incentivize insurers to avoid exposure.
Collecting and publishing granular ZIP-code insurance data raises privacy and re-identification risks for policyholders despite removal of PII.
Based on analysis of 7 sections of legislative text.
Introduced January 27, 2026 by Sean Casten · Last progress January 27, 2026
Creates new, permanent climate-financial risk structures inside the Financial Stability Oversight Council (FSOC), requires banks and the National Credit Union Administration to update supervisory guidance for institutions with more than $50 billion in assets, directs the Federal Insurance Office to collect and publish detailed homeowners insurance underwriting data and produce climate risk reports, and asks FSOC to include climate risk in nonbank SIFI designation guidance. It also directs FSOC to publish an initial public climate financial risk assessment within 270 days and annual updates thereafter and establishes an expert advisory committee to inform FSOC work.