Providing for congressional disapproval under chapter 8 of title 5, United States Code, of the rule submitted by the Office of the Comptroller of the Currency relating to "Principles for Climate-Related Financial Risk Management for Large Financial Institutions".
Introduced April 5, 2024
Latest action (Jul 30, 2024): Placed on the Union Calendar, Calendar No. 515.
Plain-Language Summary (cached)
This bill uses a legal tool called the Congressional Review Act to cancel a regulatory guidance document issued by the Office of the Comptroller of the Currency, which is the federal agency that oversees national banks and federal savings associations. The guidance in question, titled "Principles for Climate-Related Financial Risk Management for Large Financial Institutions," was designed to help large banks identify, measure, and manage financial risks that may arise from climate-related factors, such as extreme weather events or shifts in energy policy that could affect loan portfolios and investments. If this bill were to pass both chambers of Congress and be signed into law, it would nullify that guidance, meaning large financial institutions would no longer be subject to those particular regulatory expectations regarding climate-related risk management. The Congressional Review Act also prevents the issuing agency from putting forward a substantially similar rule in the future without new authorization from Congress. Essentially, the bill is a mechanism for Congress to reject a specific federal agency's regulatory action. It does not directly address climate policy or banking law more broadly — its sole effect is to void that one particular guidance document and block the OCC from reissuing something substantially like it.
How Each Side Frames It
How the Left Frames It
Left-leaning commentators, lawmakers, and media outlets would likely frame this bill as a dangerous rollback of common-sense financial safeguards, arguing that the OCC's climate risk management principles are necessary to protect the stability of large financial institutions from the very real and growing economic consequences of climate change. They would contend that ignoring climate-related risks in banking supervision leaves taxpayers and the broader economy exposed to potential financial crises driven by stranded assets, extreme weather events, and the transition away from fossil fuels. Progressive voices would also frame the bill as part of a broader effort by Republicans to shield fossil fuel industries from market accountability at the expense of sound financial oversight.
How the Right Frames It
Right-leaning commentators, lawmakers, and media outlets would frame this bill as a necessary check on regulatory overreach, arguing that the OCC exceeded its mandate by injecting politically motivated climate ideology into banking supervision in ways that go beyond its core mission of ensuring safety and soundness. They would contend that such rules effectively force banks to discriminate against lawful industries like oil, gas, and coal, distorting credit markets and threatening energy security without clear statutory authorization from Congress. Conservative voices would also celebrate the use of the Congressional Review Act as the appropriate democratic mechanism to rein in unelected bureaucrats who are imposing a partisan climate agenda through financial regulation rather than through legislation.
AI-synthesized based on each side's publicly stated policy priorities — not quotes from specific outlets.
Who's Backing This Bill
Sponsored by Rep. Donalds, Byron [R-FL-19]
Cosponsoring Representatives