Addressing Climate Financial Risk Act of 2026

# Addressing Climate Financial Risk Act of 2026 - Summary **What the Bill Does:** The Addressing Climate Financial Risk Act of 2026 would require the federal government to better assess and manage financial risks posed by climate change. Specifically, it directs federal agencies and financial regulators to identify how climate-related hazards (like flooding, drought, and extreme weather) could impact the nation's financial systems, investments, and economic stability. The bill aims to ensure that banks, investors, and government entities have clear information about climate risks when making financial decisions. **Who It Affects:** This legislation primarily affects financial institutions (banks and investment firms), federal agencies responsible for financial regulation and oversight, and potentially taxpayers who could face reduced financial losses if climate risks are better managed.

Businesses in climate-vulnerable industries and homeowners in high-risk areas may also be impacted by resulting policy changes. **Current Status:** As of now, the bill remains in committee, meaning it has not yet been debated or voted on by the full House of Representatives. It was introduced by Representative Sean Casten (D-IL). The bill has not advanced further in the legislative process.