Sponsors (2)
The bill redirects U.S. development finance and multilateral engagement toward clean energy and climate resilience—reducing future emissions and long-term environmental liabilities—while raising near-term costs for taxpayers and exporters, risking delays for some development projects, and potentially weakening U.S. leverage without clearer implementation and oversight.
Foreign countries and communities (and indirectly Americans) will see more financing directed to clean energy and climate-resilient projects while financing for new fossil-fuel projects is reduced, lowering future global greenhouse gas emissions and improving climate stability.
Low-income and vulnerable communities in partner countries will receive greater attention to climate justice and resilience programs, improving local ability to cope with climate impacts.
U.S. taxpayers and the U.S. government will likely face lower long-term environmental cleanup and liability risk because fewer U.S.-supported projects will enable environmentally harmful fossil-fuel development abroad.
U.S. taxpayers could face higher near-term costs if the policy increases U.S. contributions or loan commitments to multilateral development banks and international climate projects.
U.S. exporters, contractors, and related workers could lose business and jobs if financing for fossil-fuel projects is curtailed and those overseas contracts disappear.
Developing-country governments and low-income populations abroad may face higher costs or delays for energy and infrastructure projects that previously relied on U.S. financing, potentially slowing development or access to energy.
Based on analysis of 3 sections of legislative text.
Bars U.S. loans, insurance, guarantees, or technical assistance—direct or indirect—for fossil fuel activities and related infrastructure via key U.S. international finance agencies.
Introduced November 6, 2025 by Jeff Merkley · Last progress November 6, 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 through major U.S. international finance agencies. It explicitly applies to assistance provided via the U.S. International Development Finance Corporation, Export-Import Bank, Trade and Development Agency, USAID, and the Millennium Challenge Corporation. The bill also appends a new insertion point to the International Financial Institutions Act for provisions on clean energy and climate justice, but the text of those new provisions is not included in the provided material, creating uncertainty about definitions and implementation details.