Addressing Climate Financial Risk Act of 2026

HR 7246 establishes two new bodies within the Financial Stability Oversight Council to address climate-related financial risks. It creates a Climate Financial Risk Committee to coordinate agency efforts and an Advisory Committee with 30 members (including climate scientists, financial experts, and consumer advocates, but excluding oil/gas industry representatives) to provide input. The bill requires annual reports assessing climate risks to financial stability, updates to banking supervisory guidance for institutions over $50 billion in assets, and detailed data collection on homeowners insurance underwriting by zip code. These provisions directly affect federal financial regulators (like the Fed, SEC, and FDIC), banks, insurers, and the broader financial system by mandating structured analysis of climate risks.