Sponsors (2)
The bill eliminates U.S. financing, guarantees, and technical assistance for foreign fossil-fuel projects to reduce U.S.-backed fossil fuel expansion and reputational/climate risks, but at the cost of slowing or raising the cost of energy projects in developing countries, reducing U.S. influence, and cutting market opportunities for some U.S. exporters.
Foreign governments and energy projects will no longer receive U.S. loans, loan guarantees, or insurance for fossil fuel activities, reducing U.S.-backed financing for new oil, gas, and coal projects abroad.
Countries and projects that would have received DFC/Ex-Im support for fossil fuels will see U.S. international development finance redirected away from fossil fuels, potentially freeing more support for clean energy and climate-aligned projects.
U.S. agencies and taxpayers will face reduced reputational and climate liability because the bill ends U.S. policy guidance and technical assistance that enables fossil fuel infrastructure abroad.
Utilities, rural communities, and low-income people in developing countries may lose access to affordable financing and insurance for energy projects, delaying electrification or making energy expansion more expensive.
Recipient countries may turn to alternative (non-U.S.) financiers with weaker environmental standards or different geo-strategic ties, reducing U.S. influence and possibly increasing geopolitical risks.
State and local implementers and communities may lose access to U.S. technical assistance for projects that transition away from or mitigate fossil-fuel harms, limiting capacity-building for cleaner transitions.
Based on analysis of 3 sections of legislative text.
Prohibits U.S. agencies from providing loans, insurance, guarantees, or financial/technical assistance for any 'fossil fuel activity' or related infrastructure projects, including indirect support.
Introduced November 6, 2025 by Jeff Merkley · Last progress November 6, 2025
Prohibits the United States from providing, directly or indirectly (including through financial intermediaries), loans, insurance, guarantees, or any financial or technical assistance — including policy guidance — to any country or entity for any "fossil fuel activity" or related infrastructure projects. The prohibition explicitly names the U.S. International Development Finance Corporation, Export-Import Bank of the United States, Trade and Development Agency, United States Agency for International Development, and Millennium Challenge Corporation. The bill also attempts to add a statutory definition for "fossil fuel activity," but the provision as written contains no text, leaving that term undefined and creating legal uncertainty about scope and implementation. The measure does not authorize new spending, create programs, or set implementation timelines; it is a prohibition on certain types of international financial support by specific U.S. agencies.