Climate Change Financial Risk Act of 2025

This bill would require the Federal Reserve to regularly check whether large banks and financial companies have enough money set aside to handle financial losses that could come from climate change. Every two years, these companies would be tested under different climate change scenarios, and if problems are found, they would have to create and submit a plan to fix any weaknesses. If a company's plan isn't approved, it would face limits on how it can spend or distribute its money. The bill also creates a special group to help figure out what climate change risk scenarios to use and sets up a survey to see how other large financial institutions are preparing for climate-related risks.

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