Addressing Climate Financial Risk Act of 2026

Key Points

• This bill, introduced by Mr. Casten, would create two new groups to watch how climate change might hurt the U.S. economy. One group would be made up of government staff, and the other would include outside experts like climate scientists and economists to advise the government on financial dangers.
• Large banks with more than $50 billion in assets would have to follow new rules to show they are prepared for climate-related problems. This includes risks like property damage from storms or changes in the economy as the world moves away from fossil fuels.
• The bill requires the government to collect detailed data on homeowners insurance, including why policies are being canceled or why prices are going up in certain zip codes. This helps officials understand if climate change is making it too hard or expensive for people to get insurance.
• The goal is to prevent a major financial crash caused by climate disasters. By tracking these risks now, the government hopes to keep the banking and insurance industries stable so that regular people don't lose their savings or homes during a crisis.
• The advisory group would include experts from many fields but specifically bans anyone from the oil and gas industry from serving on it. This is intended to ensure the advice comes from people focused on climate solutions and financial safety.