Sponsors (6)
This bill strengthens federal coordination, data collection, and regulatory attention to climate-related financial risks—improving systemic oversight and public transparency—but increases reporting and compliance costs, raises privacy and implementation concerns, and may tighten credit or insurance availability for some consumers and businesses.
Financial institutions, regulators, and taxpayers will gain a coordinated, systemwide capability to identify and monitor climate-related financial risks through annual assessments, a standing interagency committee, and expanded OFR/FIO analysis—improving early warning and reducing risk of systemwide losses.
Homeowners, local and state policymakers, and consumers will get greater public transparency and usable data (including zip-code insurance metrics and published progress reports) to understand and plan for local insurance availability, pricing, and climate impacts.
Large banks, credit unions, and nonbank firms will face clearer, coordinated supervisory expectations (including climate risk considerations for nonbank SIFI designations and updated supervisory guidance), reducing regulatory uncertainty and improving prudential oversight.
Banks, insurers, and other financial firms (and ultimately taxpayers and consumers) will face increased ongoing compliance, reporting, and research costs from new assessments, data collection, and supervisory expectations.
Some businesses, borrowers, and homeowners could see reduced credit or insurance availability and/or higher prices if firms limit exposure to climate‑vulnerable sectors or face higher compliance costs that are passed on to customers.
Publication of granular, zip-code level insurance underwriting and claims data raises privacy and misuse risks (including re-identification or misinterpretation) that could harm homeowners or local markets if context is lacking.
Based on analysis of 7 sections of legislative text.
Introduced January 28, 2026 by Tina Smith · Last progress January 28, 2026
Creates a standing interagency committee and an expert advisory committee to identify, study, and coordinate federal work on climate-related financial risk, and requires annual FSOC reports with recommendations to regulators and Congress. Directs bank and credit union regulators to update supervisory guidance so institutions with more than $50 billion in assets must identify and mitigate climate risks; updates FSOC SIFI considerations to include climate risk; and requires the Federal Insurance Office to assess and publish homeowners insurance underwriting data and sector risk reports with annual public updates.