Congress·In Committee·H.R. 7246

Congress Proposes New Oversight to Protect U.S. Financial System from Climate Change Risks

Addressing Climate Financial Risk Act of 2026

about 2 months ago·View on Congress.gov

Part of: Federal Bills Seek Climate Risk Data from Large Banks and Insurers

Legislative Progress

House

Senate

President

Law

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.

Economy FinanceEnergy EnvironmentHousing

Impact Analysis

Personal Impact

Who is affectedScoreImpactCertaintyScopeDurationSentiment

Scores: 1 = low, 5 = highSentiment: -5 to +5 (net benefit)

Broader Impacts

DomainScoreShort-termLong-termReversibilityConfidence

Score

Scores: -5 (harmful) to +5 (beneficial)Short-term: 0-2 yearsLong-term: 10-30 years

Milestones

2 milestones2 actions

Jan 27, 2026House

Referred to the House Committee on Financial Services.

Jan 27, 2026

Introduced in House

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2 articles

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Westlaw Today·about 2 months ago

FINANCIAL STABILITY—CASTEN, SMITH INTRODUCE BILL TO MITIGATE CLIMATE RISK IN US FINANCIAL SYSTEM

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