Sponsor
Jared Huffman
Representative · D-CA
Representative · D-CA
The bill shifts U.S. development finance away from overseas fossil-fuel projects to cut emissions and reduce financial risk, but it may slow energy development in some partner countries, create short-term energy access and job impacts, and shift costs onto taxpayers.
U.S. taxpayers and the global climate benefit because the bill stops U.S. public financing for fossil-fuel projects abroad, reducing financed greenhouse gas emissions.
Partner countries and renewable-energy developers gain increased access to U.S. development finance as funding is redirected toward clean energy and climate resilience projects.
U.S. financial institutions and taxpayers face lower risk of losses from long-lived fossil infrastructure financed by the U.S., reducing stranded-asset exposure for public backstops.
Low-income and rural populations in partner countries may experience slower energy infrastructure development because projects that rely on fossil fuels lose financing.
People in some partner countries could face higher energy costs or blackouts in the short term where renewables or grid expansion aren't yet viable and fossil projects are blocked.
U.S. firms and workers that build or supply fossil-fuel infrastructure may lose export opportunities and jobs if overseas fossil projects are no longer financed.
Based on analysis of 3 sections of legislative text.
Bars U.S. loans, insurance, guarantees, and technical assistance for international fossil fuel activities and adds an unspecified clean-energy/climate-justice provision to IFI law.
Official title: To require the use of the voice and vote of the United States in international financial institutions to advance the cause of transitioning the global economy to a clean energy economy and to prohibit United States Government assistance to countries or entities to support fossil fuel activity, and for other purposes.
Introduced November 7, 2025 by Jared Huffman · Last progress November 7, 2025
Prohibits the United States from providing loans, insurance, guarantees, or other financial or technical assistance (directly or indirectly) for any fossil fuel activity or related infrastructure project through U.S. development and export finance agencies. It also adds a titled but substantively empty provision to the International Financial Institutions Act referencing "Clean energy and climate justice at international financial institutions." The ban explicitly covers assistance through DFC, Ex-Im Bank, TDA, USAID, and MCC. The bill therefore would block most forms of U.S.-supported public finance for international fossil fuel projects and leave a placeholder for additional clean-energy/climate-justice language that is not specified in the text provided.