Congress moves to blind banks to climate risks in their portfolios
H.R. 2923 — To nullify certain interagency guidance related to climate-related financial risk management for large financial institutions. · Filed by Troy Balderson (R-OH) · 1 cosponsor · Introduced Apr 17, 2025 · Referred to committee
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What it does
This bill voids federal guidance issued by banking regulators (the Federal Reserve, the Comptroller of the Currency, and the FDIC) that required large financial institutions to assess and manage climate-related financial risks. It also prohibits these agencies from issuing substantially similar guidance in the future. The bill benefits large banks by removing a regulatory expectation to evaluate climate risks to their portfolios.
Why we flagged it
The bill's sole function is to void regulatory guidance requiring large banks to assess climate-related financial risks and to prohibit similar guidance in the future. It is a deregulatory measure that reduces transparency and risk-management expectations for large financial institutions.
What the text implies
- Voiding the guidance removes a transparency mechanism that allowed regulators and the public to assess whether large banks are exposed to climate-driven losses. Without it, climate risks to bank portfolios remain opaque.
- The prohibition on 'substantially similar guidance' may prevent regulators from issuing updated or revised climate-risk frameworks, even if financial conditions or climate science change.
- Large banks may reduce or eliminate internal climate-risk assessment and disclosure, increasing the likelihood that climate-driven losses (e.g., from stranded fossil-fuel assets or property damage) will be discovered only after they materialize and threaten solvency.
- Removal of climate-risk expectations may reduce incentives for banks to price climate risk into lending and investment decisions, potentially concentrating climate-related losses in the financial system rather than distributing them across the economy.
Section numbers refer to the bill text the analysis read — linked under Primary records below.
Who it affects
Ordinary citizens hold deposits, retirement savings, and mortgages with large financial institutions. Climate-related financial risks—from stranded assets to supply-chain disruption to property damage—can threaten bank solvency and trigger systemic financial instability. Removing regulatory guidance that encourages banks to measure and manage these risks increases the likelihood that climate-driven losses will be hidden from public view, concentrated in bank portfolios, and ultimately borne by d
Who stands to gain
- Large commercial banks
- Large financial institutions subject to the voided guidance
- Fossil-fuel and carbon-intensive industries (reduced pressure on banks to divest or reduce exposure)
Named in the bill
Board of Governors of the Federal Reserve System, Comptroller of the Currency, Federal Deposit Insurance Corporation (FDIC), Large financial institutions, 119th Congress, House Committee on Financial Services, Rep. Balderson, Rep. Pfluger
Where it stands
1 cosponsor: 1 Republicans.
- Apr 17, 2025 — Introduced · Congress.gov: “Introduced in House”
- Apr 17, 2025 — Referred to House Committee on Financial Services · Congress.gov: “Referred to the House Committee on Financial Services”
Dates and quoted wording are Congress.gov's action record; the timeline shows status changes, not every procedural step.
How this was measured
Analysis — Quorum's AI read the bill text published by Congress.gov (1,127 characters) on Jul 2, 2026. Section numbers in the findings refer to that text, linked below; transparency and hidden-provision scores are compared against the median of 16,222 analysed bills.
Status and sponsors — Congress.gov's bill record — actions, committee referrals and cosponsors — loaded nightly. The timeline shows status changes, not every procedural action.
As of — page rendered 2026-10-20.
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