Climate Change Resiliency Fund for America Act of 2025

Bill Number

S. 2374

Origin Chamber

Senate

Congress

119th Congress, Session 1

Policy Area

Environmental Protection

Status

Introduced

Latest Action

2025-07-22: Read twice and referred to the Committee on Finance. (text: CR S4529)

Last Updated

2025-09-24T17:21:05Z

AI-Generated Summary

Purpose

The Climate Change Resiliency Fund for America Act of 2025 aims to address the effects of climate change by creating a federal advisory commission to guide adaptation efforts, establishing a dedicated fund to finance resiliency projects, and authorizing the issuance of special federal bonds (called "climate change obligations") to generate revenue for these initiatives. The overall goal is to reduce economic, social, and environmental risks from climate impacts like extreme weather, sea level rise, and pollution, with a strong emphasis on supporting vulnerable communities.

Key Provisions

• Definitions: The bill defines key terms, such as "qualified climate change adaptation purpose" (projects that reduce climate risks, like improving infrastructure against floods or protecting food supplies), "eligible entity" (includes federal agencies, states, local governments, tribes, nonprofits, and utilities), and special community types like "environmental justice communities" (areas with higher risks to health or environment due to race, income, or location) and "frontline communities" (low-income or communities of color disproportionately affected by climate change or pollution).

• Title I: Climate Change Advisory Commission
• Establishes an 11-member commission of experts from public, private, and academic sectors, appointed by the President and congressional leaders (bipartisan balance).
• Duties include developing and updating recommendations, frameworks, and guidelines for federal investments in climate-resilient infrastructure (e.g., energy, water, transportation) using the best science and data; prioritizing cost-effective projects with health, economic, and ecosystem benefits; and ensuring community involvement, especially from affected groups.
• Commission operations: 5-year terms, meetings as needed, compensated like senior federal executives (non-federal members), staff hiring flexibility, funded up to 3% of the resiliency fund annually, and terminates after 20 years.

• Title II: Climate Change Resiliency Fund
• Creates a fund in the U.S. Treasury managed by the Secretary of Commerce.
• At least 40% of funds must support projects benefiting disproportionately impacted communities (e.g., low-income, communities of color, or environmental justice areas).
• Program details: Provides grants to eligible entities for adaptation projects via applications showing expected benefits (e.g., economic growth, health improvements, environmental restoration); Secretary selects projects based on commission guidelines, prioritizing high-need areas; offers technical assistance to applicants.
• Funding rules: Requires 25% non-federal matching funds (waivable for disadvantaged communities if needed); reserves 10-40% of funds for no-match projects in vulnerable areas; ensures compliance with all existing federal laws; applies Davis-Bacon Act (requires fair wages for workers on funded projects, enforced by the Secretary of Labor).
• Additional funding: Secretary of Commerce can use unobligated funds from other sources.

• Title III: Revenue
• Authorizes the Secretary of the Treasury to issue up to $200 million in annual federal bonds (climate change obligations) starting 6 months after enactment, with proceeds going to the fund; additional bonds up to $800 million per year if initial ones sell out.
• Bonds backed by the full faith and credit of the U.S. government (guaranteed repayment from general Treasury funds) and exempt from state/local taxes.
• Promotion: Up to $10 million annually (2026-2030) for marketing bonds, including accepting donated advertising; funded by appropriations.

Significant Changes to Existing Law

• Introduces a new dedicated federal fund and bond-issuance mechanism specifically for climate adaptation, separate from general budget processes, drawing on existing Treasury authority under U.S. Code for obligations (debts).
• Mandates equity focus by requiring minimum funding allocations (40%) and priorities for disadvantaged communities, which builds on but expands environmental justice principles in laws like the National Environmental Policy Act.
• Applies labor standards (Davis-Bacon Act) to all funded projects without exceptions, reinforcing wage protections but not altering the underlying law.
• No waivers of other federal requirements (e.g., environmental reviews), ensuring projects align with statutes like the Clean Air Act or Endangered Species Act.

Potential Impacts

• Government Agencies: Creates administrative roles for the Departments of Commerce (fund management, consultations) and Treasury (bond issuance), potentially increasing workload and coordination with agencies like Labor and Housing; the commission adds advisory oversight but limits its budget to avoid strain.
• Citizens: Enhances community resilience through projects that protect against disasters (e.g., better flood defenses, safer water supplies), with direct benefits to vulnerable groups via prioritized funding and no-match grants; could create jobs in construction and planning while improving public health and reducing pollution exposure.
• International Relations: Primarily domestic, but supports U.S. climate leadership by funding adaptation efforts, potentially aiding global commitments like the Paris Agreement; no direct foreign aid or trade impacts specified.

Main Stakeholders Affected

• Eligible Entities: States, local governments, tribes, utilities, nonprofits, and transit agencies applying for and receiving project funds.
• Vulnerable Communities: Low-income, communities of color, environmental justice, and frontline groups, who gain prioritized access to resiliency investments and community involvement.
• Federal Government: Departments of Commerce, Treasury, and Labor; the new commission's members from public/private sectors.
• Workers and Businesses: Laborers on projects (protected by wage rules); private sector experts on the commission and contractors benefiting from funded infrastructure.
• General Public: Taxpayers indirectly funding bonds (via Treasury), with broader societal gains from reduced climate risks.

Notable Legal, Constitutional, or Political Implications

• Legal: Relies on Congress's spending power (Article I, Section 8 of the Constitution) to create the fund and issue bonds, with explicit backing by U.S. credit ensuring enforceability; maintains all existing federal laws (no preemption), reducing litigation risks but requiring multi-agency compliance.
• Constitutional: Bipartisan commission appointments promote balance, avoiding separation-of-powers issues; equity mandates align with equal protection principles but could face challenges if seen as preferential treatment (though supported by precedents in environmental justice cases).
• Political: Encourages cross-party collaboration via shared appointments and focuses on practical, science-based solutions; 20-year commission sunset provides a defined timeline, potentially easing passage but tying funding to bond sales, which depends on market confidence in climate priorities.

This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.

Sponsor

Sen. Durbin, Richard J. [D-IL]

Recent Actions

• 2025-07-22: Read twice and referred to the Committee on Finance. (text: CR S4529)
• 2025-07-22: Introduced in Senate

Bill Versions

• Climate Change Resiliency Fund for America Act of 2025 — issued 2025-07-22 — PDF (19 pages)