# Plain Language Summary of H.R. 10120

This bill would eliminate guidance that federal banking regulators created to help large banks manage climate-related financial risks. In October 2023, three major banking agencies—the Federal Reserve, the Comptroller of the Currency, and the Federal Deposit Insurance Corporation—issued a set of principles telling big banks how to identify and handle risks related to climate change. These risks include things like how extreme weather might damage properties that banks have financed, or how climate policies might affect the value of investments banks hold. This bill would wipe that guidance off the books and prevent these agencies from issuing anything similar in the future.

The practical effect is that large banks would no longer have federal guidance on how to evaluate and manage climate-related financial risks in their operations. Supporters of the bill argue this removes unnecessary regulatory burden on financial institutions, while critics worry it could leave banks unprepared for financial problems caused by climate events or climate policy changes. For everyday people, this could matter if you have money in banks or retirement accounts, since banks that don't properly manage these risks could face financial problems that affect their stability. It could also affect lending practices, since banks might not systematically consider climate risks when deciding whether to finance projects or properties.

The bill doesn't prevent banks from voluntarily considering climate risks on their own—it just removes the federal guidance telling them they should. It also doesn't change any laws; it only eliminates guidance that agencies had issued to explain how they expected banks to follow existing financial regulations.