Sponsors (2)
The bill stops U.S. financing and assistance for fossil fuel projects abroad—reducing U.S.-enabled emissions and reputational liability and potentially freeing support for clean energy—while risking slower energy access and development in recipient countries, greater reliance on non-U.S. financiers, and lost export opportunities for U.S. firms.
Foreign governments, utilities, and energy projects will no longer receive U.S. loans or guarantees for fossil fuel activities, reducing U.S.-backed financing for new oil, gas, and coal projects and lowering U.S.-enabled greenhouse gas emissions abroad.
Developing-country borrowers and U.S. development finance agencies may be able to redirect support away from fossil fuels toward clean energy or climate-aligned projects, potentially increasing finance available for renewables and climate mitigation.
U.S. agencies and taxpayers will face reduced reputational and long-term climate liability because the bill ends policy guidance and technical assistance that has facilitated fossil fuel infrastructure.
Developing-country governments, utilities, rural communities, and low-income households will lose access to U.S. financing and insurance for energy projects, which could delay electrification, raise project costs, and slow economic and social development.
Recipient countries could turn to alternative non-U.S. financiers (with weaker environmental or geopolitical alignment), reducing U.S. influence abroad and potentially undermining strategic and environmental objectives.
U.S. exporters, contractors, and small businesses that depend on Export-Import Bank or DFC support for energy infrastructure exports will face reduced market opportunities and potential revenue losses.
Based on analysis of 3 sections of legislative text.
Prohibits U.S. loans, guarantees, insurance, and technical assistance for international fossil fuel activities and related infrastructure by specified agencies.
Official title: 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 6, 2025 by Jeff Merkley · Last progress November 6, 2025
Prohibits the U.S. government and specified federal agencies from providing loans, insurance, guarantees, or other financial or technical assistance — directly, indirectly, or through intermediaries — for any fossil fuel activity or related infrastructure in other countries or to entities. The prohibition explicitly applies to the U.S. International Development Finance Corporation, Export-Import Bank, Trade and Development Agency, USAID, and Millennium Challenge Corporation. An amendment that was intended to add a "clean energy and climate justice" provision to the International Financial Institutions Act contains no substantive text and makes no changes to existing law.