# Plain Language Summary: Congressional Disapproval of Federal Reserve Climate Risk Rule

Congress is voting on whether to reject a new rule from the Federal Reserve (the nation's central bank) about how large banks should manage climate-related financial risks. Think of it like this: the Federal Reserve created guidelines telling big banks they need to think about how climate change could affect their finances—things like whether loans they made to coastal properties might become risky due to flooding, or whether investments in fossil fuel companies could lose value as the world shifts to clean energy. Now Congress is trying to block that rule before it takes effect.

If this bill passes, large financial institutions won't have to follow the Federal Reserve's climate risk guidelines. This means banks could continue making major financial decisions without formally assessing climate-related dangers to their business. Supporters of the bill argue that banks shouldn't be forced to consider climate issues and that it's not the Federal Reserve's job to push environmental policy. Opponents worry that ignoring climate risks could lead banks to make bad investments that hurt their stability and, ultimately, everyday people's savings and retirement accounts if those banks run into trouble.

The practical effect depends on your perspective: if you believe climate change poses real financial risks that banks should plan for, this bill removes an important safeguard. If you think the Federal Reserve is overstepping its authority or that climate considerations shouldn't influence banking rules, you'd see this as preventing unnecessary regulation. Either way, it's about whether large financial institutions must formally evaluate how climate change could impact their money and investments.

Providing for congressional disapproval under chapter 8 of title 5, United States Code, of the rule submitted by the Board of Governors of the Federal Reserve System relating to "Principles for Climate-Related Financial Risk Management for Large Financial Institutions".

Fitzgerald, Scott

<p>This joint resolution nullifies the notice jointly issued by the Board of Governors of the Federal Reserve System, the Office of the Comptroller of the Currency, and the Federal Deposit Insurance Corporation titled <em>Principles for Climate-Related Financial Risk Management for Large Financial Institutions</em> and published on October 30, 2023. The notice provides a framework for financial risk management related to climate change for financial institutions with over $100 billion in assets.</p>