Congress moves to ban climate lawsuits against fossil fuel companies
S. 4340 — Stop Climate Shakedowns Act of 2026 · Filed by Ted Cruz (R-TX) · 3 cosponsors · Introduced Apr 16, 2026 · Referred to committee
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What it does
This bill prohibits states and individuals from suing fossil fuel companies for climate-related damages, arguing that climate regulation belongs exclusively to the federal government. It voids existing state climate liability laws and 'climate superfund' statutes, dismisses pending climate lawsuits, and bars future private climate litigation in state or federal courts.
Why we flagged it
The bill's core function is to shield energy companies from climate-related lawsuits by preempting state law and eliminating private rights of action. Despite framing itself as a federalism and commerce regulation measure, its primary effect is to immunize a specific industry from liability.
What the text implies
- Dismisses all pending climate litigation immediately upon enactment, potentially eliminating billions in damages claims already in court without judicial review of individual merits.
- Voids state climate superfund laws retroactively, eliminating a primary mechanism by which states have recovered costs for climate adaptation and disaster recovery.
The full analysis lists 5 implications of this text.
Who stands to gain
fossil fuel extraction and production companies; oil and gas refiners and distributors; coal mining companies