Sponsors (6)
The bill strengthens federal coordination, data, and supervision to identify and reduce climate-related financial risks—improving stability and consumer information—but does so at the cost of new compliance burdens, potential higher costs for consumers and borrowers, regulatory uncertainty, and uneven impacts on smaller firms and vulnerable communities.
Financial regulators, state governments, and markets will get coordinated, regular analysis and shared climate-financial data and tools to guide supervision, policymaking, and public reporting, improving information available to regulators and the public.
Large banks, credit unions, and systemically important firms will face clearer climate-risk supervision and SIFI designation criteria, which can reduce the chance of climate-driven systemic shocks and protect taxpayers and consumers.
Homeowners and state regulators will gain granular ZIP-code insurance pricing, claims, and nonrenewal information plus updated insurer analysis, improving consumers' ability to assess risk and enabling targeted regulatory intervention to stabilize insurance markets.
Banks, insurers, credit unions, and other financial firms will face substantial new compliance, reporting, and risk-management costs from expanded supervision, data collection, and possible adoption of international standards—costs likely borne in part by customers and investors.
Borrowers and consumers (homeowners, small businesses, taxpayers) could see higher insurance premiums, tighter lending, reduced credit availability, or higher borrowing costs as firms pass on compliance or capital costs or restrict exposure to climate-vulnerable sectors.
Mandated committees, new criteria for supervision and SIFI designation, and rapid issuance of guidance risk regulatory uncertainty, uneven enforcement, and legal challenges while agencies and courts sort new standards.
Based on analysis of 7 sections of legislative text.
Creates FSOC climate committees, mandates regulators to integrate climate financial risk into supervision and SIFI criteria, and requires FIO to collect and report granular homeowners insurance data.
Introduced January 28, 2026 by Tina Smith · Last progress January 28, 2026
Requires federal financial regulators to treat climate-related risks as core components of supervision and systemic risk work. It creates a climate-focused committee and advisory panel inside the Financial Stability Oversight Council, forces large banks and credit unions (assets > $50 billion) to have supervisory guidance on climate financial risks, updates how FSOC may designate nonbank SIFIs for climate risk, and directs the Federal Insurance Office to collect detailed homeowners underwriting data and publish reports on insurance-sector climate risks. Also encourages U.S. financial regulators to join international climate-finance bodies and to better coordinate public data, risk analysis, and disclosures to protect financial stability from climate-related hazards.