Addressing Climate Financial Risk Act of 2026
Sponsored By: Representative Casten
Introduced
Summary
This bill would create new council bodies to integrate climate risk into U.S. financial oversight and coordination. It would push agencies to share climate and financial data, produce regular reports, and update supervision and disclosure to manage climate-related threats to banks, insurers, and markets.
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- Regulators and large banks: It creates a Climate Financial Risk Committee and an Advisory Committee and directs the Office of Financial Research to compile climate and financial data. Federal banking agencies and the National Credit Union Administration must update supervisory guidance for institutions with more than $50 billion in assets.
- Homeowners and housing markets: The Federal Insurance Office must publish homeowners insurance underwriting data for 2023 and 2024 at the ZIP code level with granular metrics on premiums, policies, claims, losses, nonrenewals, and cancellations.
- Investors, insurers, and public stakeholders: The Advisory Committee would have up to 30 members drawn from climate science, finance, consumer and investor groups while excluding oil and gas industry stakeholders. The Council must publish a climate financial risk report not later than 270 days after enactment and annually thereafter.
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Bill Overview
Analyzed Economic Effects
4 provisions identified: 3 benefits, 0 costs, 1 mixed.
New climate rules for big banks
This bill would require each Federal banking agency and the NCUA to update supervisory guidance to address climate financial risk for institutions with more than $50,000,000,000 in assets. The guidance would have to cover credit, liquidity, market, operational, and reputational risks. The Financial Institutions Examination Council would coordinate the updated guidance and share it with State regulators. The requirement would take effect upon enactment.
New climate risk oversight and reports
This bill would create two standing climate risk bodies inside the Financial Stability Oversight Council. It would create a Climate Financial Risk Committee of agency staff that would work with the Office of Financial Research and could not be ended except by an Act of Congress. It would create an Advisory Committee of up to 30 experts that must meet at least every two months and include scientists, financial experts, consumer and investor representatives, and exclude oil and gas stakeholders. The Council would publish an initial climate financial risk report within 270 days and publish a report every year after that.
Homeowners insurance data and review
This bill would require the Federal Insurance Office to publish an insurance-sector assessment within one year. It would require a ZIP-code level homeowners underwriting report for 2023 and 2024 within one year. That report would include premiums, policies, claims, losses, limits, deductibles, non-renewals, and cancellations and must exclude personally identifiable information. FIO would publish annual public homeowners reports after 2025, due no later than 180 days after December 31 each year, and share the data with Congressional committees or a State insurance commissioner on request.
Climate risk rules for large nonbank firms
This bill would require the Financial Stability Oversight Council to update its nonbank systemic-risk rules to say how climate financial risk will be included in SIFI decisions. The change would affect how large nonbank firms are judged for systemic importance and oversight. The change would take effect upon enactment.
Sponsors & CoSponsors
Sponsor
Casten
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
Mullin
CA • D
Sponsored 1/27/2026
Bonamici
OR • D
Sponsored 1/27/2026
Rep. Ansari, Yassamin [D-AZ-3]
AZ • D
Sponsored 1/27/2026
Rep. Huffman, Jared [D-CA-2]
CA • D
Sponsored 1/27/2026
Stansbury
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
Levin
CA • D
Sponsored 2/24/2026
Rep. Magaziner, Seth [D-RI-2]
RI • D
Sponsored 5/12/2026
Roll Call Votes
No roll call votes available for this bill.
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