Sponsors
The bill increases transparency and congressional oversight of domestic financial rulemaking and international climate-related regulatory engagements, at the cost of slower, more costly rule development and reduced capacity for international coordination and influence.
Financial firms and other regulated entities gain clearer, more predictable rulemaking timelines and advance notice because agencies must give 120 days' notice and provide detailed analyses before major financial rules take effect.
Congress and the public receive greater transparency and oversight of major domestic financial rulemakings and international climate-related engagements because agencies must deliver economic analyses, testimony, and records of international activities to congressional committees.
Stakeholders (households and small firms) will have clearer information on the projected economic effects of proposed rules—costs, credit availability, GDP and employment impacts—supporting more informed public comment and debate.
Consumers and markets risk reduced protection because the 120-day notice requirement and heavy pre-rule analytical requirements can delay or block timely financial regulations.
U.S. ability to coordinate internationally on climate-related financial risk and to shape global banking standards could be weakened, reducing U.S. influence in multilateral standard-setting and slowing development of cross-border risk mitigation.
Requiring multi-year, large-dollar ($10B) impact analyses and other mandated studies raises agency compliance costs and may increase taxpayer expense while slowing rule development.
Based on analysis of 3 sections of legislative text.
Requires banking regulators to notify Congress and provide detailed economic analysis before adopting major rules tied to specified international recommendations, and limits engagement with certain international climate‑finance bodies without annual reports.
Requires federal banking regulators to give Congress 120 days' advance notice, testimony, and a detailed economic analysis before proposing or finalizing any major rule that adopts or aligns with recommendations from certain non‑governmental international organizations; defines “major covered rule” by a $10 billion 10‑year economic impact threshold. Also bars several federal banking agencies from meeting or engaging with specific international bodies on climate‑related financial risk in a calendar year unless they first submit an annual report to two Congressional committees describing prior‑year participation and the covered organizations' funding sources. Creates new procedural and reporting hurdles intended to increase Congressional oversight of rulemaking tied to international recommendations and to restrict regulator engagement with listed international climate‑finance bodies unless agencies provide a detailed accounting to the House Financial Services Committee and the Senate Banking Committee.
Introduced May 13, 2025 by Barry D. Loudermilk · Last progress May 13, 2025