S3711119th CongressWALLET

Addressing Climate Financial Risk Act of 2026

Sponsored By: Senator Sen. Smith, Tina [D-MN]

Introduced

Summary

Integrating climate risk into financial oversight. This bill would create two new council bodies to coordinate data, analysis, and standards so regulators spot and manage climate-related threats to the financial system.

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Bill Overview

Analyzed Economic Effects

4 provisions identified: 3 benefits, 1 costs, 0 mixed.

Zip‑level homeowners insurance data

If enacted, the Federal Insurance Office would publish an updated insurance sector report within one year. The Office would also require insurers to provide zip code–level homeowners underwriting data for 2023 and 2024 and publish annual datasets thereafter. The dataset would include premiums, policies, claims, losses, limits, deductibles, non‑renewals, and cancellations. FIO would exclude personal identifiers and must make the data public by July 1, 2026 and every year after. FIO would give the report and data to the Senate Banking Committee, House Financial Services Committee, or a State insurance commissioner on request.

Annual climate risk reports and research

If enacted, FSOC would publish a coordinated climate financial risk report within 270 days and then every year. The report would assess impacts on financial stability, data gaps, insurance and housing finance, bank and nonbank risk management, disclosures, and recommend steps for regulators and Congress. Each FSOC member agency would also have to publish a public strategy for identifying and reducing climate financial risk. The Office of Financial Research would compile climate and financial data, provide analytic tools, and do ongoing research to support regulators.

New federal climate oversight committees

If enacted, the Financial Stability Oversight Council would get a permanent Climate Financial Risk Committee staffed by member agencies and led by the Deputy Assistant Secretary. The bill would also create an external Advisory Committee on Climate Risk with up to 30 members, including climate scientists, financial experts, consumer or labor representatives, and investor groups. The advisory body would meet every two months and has protected terms for members. The Climate Financial Risk Committee could not be terminated or changed except by an Act of Congress.

Stronger climate rules for big financial firms

If enacted, federal banking agencies and the National Credit Union Administration would update supervisory guidance on climate risk for institutions with more than $50 billion in assets. Guidance would cover credit, liquidity, market, operational, and reputational risk and be coordinated through the Financial Institutions Examination Council and shared with State regulators. FSOC would also update rules to include climate financial risk when deciding nonbank systemically important financial institution status. These changes would increase oversight and could raise compliance costs for large banks and big nonbank firms.

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Sponsors & CoSponsors

Sponsor

Sen. Smith, Tina [D-MN]

MN • D

Cosponsors

  • Sen. Merkley, Jeff [D-OR]

    OR • D

    Sponsored 1/28/2026

  • Sen. Warren, Elizabeth [D-MA]

    MA • D

    Sponsored 1/28/2026

  • Sen. Heinrich, Martin [D-NM]

    NM • D

    Sponsored 1/28/2026

  • Chris Van Hollen

    MD • D

    Sponsored 1/28/2026

  • Sen. Padilla, Alex [D-CA]

    CA • D

    Sponsored 1/28/2026

Roll Call Votes

No roll call votes available for this bill.

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