Sponsors (6)
The bill sharply expands federal coordination, data collection, and supervisory focus on climate-related financial risks—improving transparency and system resilience for consumers and markets—but at the cost of higher compliance and administrative burdens, possible reductions in lending and insurance availability in high-risk areas, and increased regulatory complexity.
Banks, insurers, and the broader financial system will face coordinated, ongoing federal attention to climate-related financial risks (via a permanent FSOC committee, OFR research, reporting, SIFI consideration, and supervisory expectations), improving systemic resilience and reducing the chance of climate-driven financial shocks.
Homeowners and renters will gain clearer, ZIP-code-level visibility into insurance availability, pricing trends, and nonrenewal risk, helping consumers compare options and plan for climate-driven coverage changes.
Policymakers, regulators, and the public will get more and better information (OFR research, annual reports, FIO updates, advisory expertise), improving transparency and enabling more informed congressional and regulatory action on climate-financial risks.
Banks, insurers, large credit unions, and nonbank financial firms will face substantial new compliance, reporting, and data-provision costs from multiple mandated data collections, supervisory expectations, and reporting requirements.
Lending and insurance availability could shrink in climate-exposed sectors and high-risk areas as institutions pull back or raise prices to manage new supervisory expectations, increasing borrowing and insurance costs for homeowners, small businesses, and communities.
The new permanent committees, reporting regimes, and expanded supervisory criteria add regulatory complexity and ongoing administrative burdens for regulators and firms, creating implementation costs and potential duplication.
Based on analysis of 7 sections of legislative text.
Requires federal regulators to integrate climate risk into supervision, creates climate risk committees, updates SIFI rules, and mandates ZIP-code homeowners insurance data collection.
Requires federal financial regulators to treat climate-related threats as a core part of supervision and oversight. It creates a permanent standing Climate Financial Risk Committee inside the Financial Stability Oversight Council (FSOC), establishes a multi-stakeholder Advisory Committee on Climate Risk, forces banking regulators and the NCUA to update supervisory guidance for institutions (with a $50 billion asset threshold for mandatory action), directs FSOC to fold climate risk into nonbank systemically important financial institution (SIFI) designation rules, and orders the Federal Insurance Office (FIO) to report on and collect ZIP-code level homeowners insurance underwriting data. The bill also directs coordination across federal agencies and with states, excludes oil and gas industry representatives from certain advisory roles, and encourages U.S. participation in international climate-financial risk bodies. It creates new reporting and data-collection duties but does not appropriate new funding in the text provided.
Introduced January 28, 2026 by Tina Smith · Last progress January 28, 2026