Bill > S3711

This bill, the Addressing Climate Financial Risk Act of 2026, aims to bolster the United States' financial system's resilience to climate-related risks by establishing two new committees within the Financial Stability Oversight Council (FSOC): the Climate Financial Risk Committee and the Advisory Committee on Climate Risk. The Climate Financial Risk Committee, composed of staff from FSOC member agencies and led by a Deputy Assistant Secretary, will help identify and prioritize areas for assessing and mitigating climate risks, coordinate information sharing and common approaches among agencies, and collaborate with the Office of Financial Research to compile and analyze climate and financial data. The Advisory Committee on Climate Risk will consist of up to 30 members, including experts in climate science, economics, financial risk, insurance, capital markets, banking, housing finance, investor advocacy, and consumer and labor groups, who will consult with and advise the FSOC on gathering information, conducting analysis, and making recommendations to identify, assess, and mitigate climate-related financial risks. The bill also mandates that Federal banking agencies and the National Credit Union Administration update their supervisory guidance to incorporate climate financial risk for institutions with over $50 billion in assets, and requires the FSOC to update its guidance on designating nonbank financial companies as systemically important financial institutions (SIFIs) to include climate financial risk. Furthermore, the Federal Insurance Office is directed to publish reports assessing the impact of climate financial risk on the insurance sector and to collect detailed homeowners insurance underwriting data to analyze climate-related risks across state insurance markets and their potential impact on financial stability. Finally, it expresses the sense of Congress that relevant U.S. financial agencies should join international organizations focused on climate financial risk, such as the Network for Greening the Financial System and the Task Force on Climate-Related Financial Risks of the Basel Committee on Banking Supervision, to improve global coordination.

Housing and Urban Affairs

https://www.congress.gov/bill/119th-congress/senate-bill/3711/all-info