Addressing Climate Financial Risk Act of 2026
Sponsored By: Representative Rep. Casten, Sean [D-IL-6]
Introduced
Summary
This bill would create a new climate governance structure inside the Financial Stability Oversight Council to identify and manage climate-related risks to the U.S. financial system. It would set up standing committees, require new data collections, and mandate recurring reports so regulators can spot and address threats to financial stability.
Show full summary
- Would create a Climate Financial Risk Committee inside FSOC and an Advisory Committee of up to 30 members to coordinate agency work, share data with the Office of Financial Research, and develop common approaches to climate risk.
- Would require federal banking agencies and the National Credit Union Administration to update supervisory guidance for institutions with more than $50 billion in assets to cover credit, liquidity, market, operational, and reputational risks linked to climate.
- Would direct the Federal Insurance Office to assess insurance-sector climate risks, update prior findings, and collect homeowners underwriting data for 2023 and 2024 by ZIP code, with annual public reporting beginning within 180 days after December 31, 2025.
- Would require FSOC to publish a report within 270 days and annually thereafter assessing impacts on financial stability, data gaps, regulator expertise, insurance availability, international coordination, and providing recommendations to regulators and Congress.
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Bill Overview
Analyzed Economic Effects
3 provisions identified: 3 benefits, 0 costs, 0 mixed.
Climate oversight for big banks and firms
If enacted, the bill would require federal banking agencies and the National Credit Union Administration to update supervisory guidance to include climate financial risks for institutions with more than $50,000,000,000 in assets. The guidance must cover credit, liquidity, market, operational, and reputational risks, and the Financial Institutions Examination Council would coordinate the updates and share them with State regulators. The bill would also direct the Financial Stability Oversight Council to update rules for designating nonbank systemically important financial institutions to explain how climate risk is considered in those decisions.
New FSOC climate committees and report
If enacted, the bill would create a new Advisory Committee on Climate Risk inside the Financial Stability Oversight Council (FSOC). The advisory committee could have up to 30 members appointed by agencies like Energy, EPA, NSF, CFPB, and SEC, would meet bimonthly, have staggered three‑year terms, and would exclude oil and gas industry stakeholders. The bill would also create a standing Climate Financial Risk Committee of FSOC staff, led by the Deputy Assistant Secretary, to coordinate data, tools, and joint analysis; that staff committee could only be changed or ended by an Act of Congress. Each FSOC member agency would have to post a public strategy to identify and mitigate climate financial risk, and FSOC would assign the Office of Financial Research to do ongoing climate risk research. FSOC would publish a climate risk report within 270 days of enactment and annually after that, with assessments and recommendations to regulators and Congress.
Homeowners insurance ZIP-code data report
If enacted, the Federal Insurance Office (FIO) would publish a homeowners underwriting report within one year covering calendar years 2023 and 2024. FIO would collect ZIP-code level data from insurers across all lines under 31 U.S.C. 313, including premiums, policies, claims, losses, limits, deductibles, non-renewals, and cancellations, but would exclude personally identifiable information. On request, FIO would share the report and data with the House Financial Services Committee, the Senate Banking Committee, or a State insurance commissioner with authority over an insurer. FIO would then publish annual ZIP-code level reports for the preceding year by 180 days after December 31, 2025, and every year after.
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Sponsors & CoSponsors
Sponsor
Rep. Casten, Sean [D-IL-6]
IL • D
Cosponsors
Rep. Castor, Kathy [D-FL-14]
FL • D
Sponsored 1/27/2026
Rep. Lieu, Ted [D-CA-36]
CA • D
Sponsored 1/27/2026
Rep. Mullin, Kevin [D-CA-15]
CA • D
Sponsored 1/27/2026
Rep. Bonamici, Suzanne [D-OR-1]
OR • D
Sponsored 1/27/2026
Ansari
AZ • D
Sponsored 1/27/2026
Rep. Huffman, Jared [D-CA-2]
CA • D
Sponsored 1/27/2026
Rep. Stansbury, Melanie Ann [D-NM-1]
NM • D
Sponsored 1/27/2026
Rep. Velázquez, Nydia M. [D-NY-7]
NY • D
Sponsored 1/27/2026
Rep. Brownley, Julia [D-CA-26]
CA • D
Sponsored 1/27/2026
Rep. Evans, Dwight [D-PA-3]
PA • D
Sponsored 1/27/2026
Rep. Min, Dave [D-CA-47]
CA • D
Sponsored 1/27/2026
Rep. Goldman, Daniel S. [D-NY-10]
NY • D
Sponsored 1/27/2026
Rep. Levin, Mike [D-CA-49]
CA • D
Sponsored 2/24/2026
Roll Call Votes
No roll call votes available for this bill.
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