U.S. can forgive debt for countries that build climate protection.

What it does

The bill lets the President forgive or change debt. Poor and middle-income countries and small island nations can qualify. These countries must promise to prepare for climate disasters. The bill tells U.S. officials at world banks to push for debt relief. It also pushes for climate insurance for vulnerable countries. The goal is to free up money for climate protection.

Who it affects

Countries that are poor or middle-income and face climate risks benefit directly. Americans benefit indirectly by reducing climate-driven migration and crises. The bill focuses on countries with democratic governments and human-rights protections.

One thing to notice

The President gets broad power to decide which countries qualify. Congress gets only 15 days' notice before decisions take effect. The bill lets the U.S. buy debt from private traders, which could make debt traders richer.

From the analysis of the bill text, linked under Primary records below.

Where it stands

2 cosponsors: 2 Democrats.

• Jun 24, 2026 — Introduced · Congress.gov: “Introduced in House”
• Jun 24, 2026 — Referred to House Committee on Financial Services and House Committee on Foreign Affairs · Congress.gov: “Referred to the Committee on Foreign Affairs, and in addition to the Committee on Financial Services, for a…”

Dates and quoted wording are Congress.gov's action record; the timeline shows status changes, not every procedural step.

Words to know

• debt relief — Forgiving or reducing money a country owes to another country or bank.
• climate insurance — Money paid to help countries recover after climate disasters strike.