Sponsors (16)
Official title: To establish the Climate Financial Risk Committee and Climate Financial Risk Advisory Committee on the Financial Stability Oversight Council.
Introduced January 27, 2026 by Sean Casten · Last progress January 27, 2026
The bill strengthens federal monitoring, interagency coordination, disclosure, and international engagement to reduce systemwide climate-related financial risk and inform consumers, while increasing compliance and administrative costs, creating privacy and state‑federal tension risks, and potentially reducing insurance availability in high‑risk areas.
Financial institutions, state regulators, and taxpayers will benefit from centralized, regular climate-risk analysis and stronger systemwide monitoring that aim to reduce the chance of climate-driven banking or insurance failures.
Banks, large credit unions, and supervisors will gain clearer, coordinated regulatory guidance and interagency standards for identifying and managing climate-related financial risks, improving predictability and reducing regulatory gaps.
Homeowners, renters, and small businesses will get clearer, more localized information (ZIP-code and public reports) and FIO analysis about insurance exposure to flood/fire/hurricane risks, helping them understand and prepare for insurance availability and pricing changes.
Banks, insurers, and other supervised firms (and ultimately consumers and taxpayers) will face increased compliance, reporting, and administrative costs to meet new climate-risk analyses and data requirements.
Homeowners and businesses in high‑risk areas may see higher premiums, reduced coverage availability, and depressed property values if regulators tighten underwriting or if public data reveals concentrated nonrenewals.
Publishing granular ZIP-code underwriting and nonrenewal data risks privacy re‑identification and exposing competitive market information, raising concerns for homeowners and insurers.
Based on analysis of 7 sections of legislative text.
Creates FSOC climate committees, requires bank regulators to include climate risk in supervision, updates SIFI rules, and mandates zip-code insurance data and reports.
Directs federal financial regulators to build climate risk oversight into bank, insurance, and nonbank stability work. It creates a Climate Financial Risk Committee and an advisory committee inside the Financial Stability Oversight Council, requires banks and credit unions above $50 billion to include climate-related risks in supervision guidance, instructs FSOC on how to factor climate into SIFI designations, and orders new insurance-sector data collection and reporting on climate exposures.