Global Climate Resilience Act of 2025
Sponsored By: Senator Peter Welch
Introduced
Summary
debt-for-resilience is the core idea. This bill would let the U.S. reduce, swap, or buy back debts owed to the United States so those savings fund climate resilience, disaster risk reduction, and recovery in vulnerable developing countries.
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- Eligible developing-country governments would be able to convert U.S. loan obligations into funding for resilience and recovery, with debt buybacks allowed at up to 65% of face value and eligibility tied to World Bank income categories or small island developing state status.
- Plans that involve local communities and Indigenous peoples and that aim to reduce gender, income, and social inequalities get priority when benefits are assigned.
- The U.S. would push the IMF, World Bank, and regional development banks to use debt-for-resilience, debt-for-nature, buybacks, and other debt tools, and would back a World Bank parametric climate insurance program to deliver rapid payouts after disasters.
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Bill Overview
Analyzed Economic Effects
3 provisions identified: 2 benefits, 0 costs, 1 mixed.
New debt relief and swap authority
The bill would create a U.S. debt-for-resilience program to free funds for climate resilience in eligible countries. The President would be able to reduce, sell, cancel, or exchange certain U.S. loans to support debt-for-resilience swaps and buybacks. The U.S. could buy privately held debt to help swaps for up to 65% of the debt's face value, and proceeds would be deposited into U.S. loan repayment accounts. Appropriations "such sums as may be necessary" would be authorized to carry out these authorities.
U.S. push for climate insurance
The bill would direct U.S. officials at international financial institutions to push for debt reduction tools and swaps for eligible countries. It would also direct U.S. advocacy for a World Bank-hosted parametric climate insurance program to give quick, pre-agreed payments after disasters. The insurance could include payments to small producers and governments for cleanup, recovery, adaptation, and nature-based solutions, and program design could pool risk across countries to lower premiums.
Which countries can get relief
The bill would require four findings before a country could get relief: World Bank income categories or UN small island status, a democratically elected government, no consistent pattern of gross human rights violations, and a plan to spend savings on resilience or recovery. The President would give at least 15 days' notice to key congressional committees before a formal eligibility decision and must send an annual report by April 15 about activities and agreements from the prior year. Preference would be given to plans that include local communities and Indigenous peoples and that aim to reduce gender, income, and social inequalities.
Sponsors & CoSponsors
Sponsor
Peter Welch
VT • D
Cosponsors
Sen. Kim, Andy [D-NJ]
NJ • D
Sponsored 12/16/2025
Roll Call Votes
No roll call votes available for this bill.
View on Congress.gov