A joint resolution providing 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 "Rescission of Principles for Climate-Related Financial Risk Management for Large Financial Institutions".
- Bill Number
- S.J.Res. 113
- Origin Chamber
- Senate
- Congress
- 119th Congress, Session 2
- Policy Area
- Finance and Financial Sector
- Status
- Introduced
- Latest Action
- 2026-03-05: Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
- Last Updated
- 2026-03-11T14:49:54Z
AI-Generated Summary
Purpose
This joint resolution (S.J. Res. 113) aims to block a rule proposed by the Office of the Comptroller of the Currency (OCC), a federal agency that regulates national banks. The rule would eliminate voluntary guidelines for large banks to manage financial risks related to climate change, such as extreme weather or shifts to low-carbon economies. By disapproving the rule, Congress seeks to preserve these guidelines and maintain focus on climate risks in banking.
Key Provisions
- Disapproval of Specific Rule: Congress explicitly disapproves the OCC's rule titled "Rescission of Principles for Climate-Related Financial Risk Management for Large Financial Institutions," published in the Federal Register on November 18, 2025 (90 Fed. Reg. 51756).
- Nullification: The rule is declared to have no legal force or effect if the resolution passes, preventing the OCC from removing the original climate risk management principles.
- Legislative Process: Introduced by Senators Elizabeth Warren and Sheldon Whitehouse on March 5, 2026, and referred to the Senate Committee on Banking, Housing, and Urban Affairs for review.
Significant Changes to Existing Law
- This resolution invokes the Congressional Review Act (CRA), a law allowing Congress to overturn recent federal agency rules with a simple majority vote and presidential signature (or veto override).
- It reverses the OCC's attempt to rescind 2021 guidance that encouraged large banks (assets over $100 billion) to identify, assess, and mitigate climate-related financial risks, such as loans vulnerable to environmental changes.
- No new laws are created; instead, it maintains the status quo by blocking deregulation in climate risk oversight.
Potential Impacts
- On Government Agencies: The OCC would be unable to implement the rescission, potentially leading to continued enforcement or guidance on climate risks. This could strain relations between Congress and the executive branch if the President opposes it.
- On Citizens: Indirect benefits for those concerned with climate change, as banks might continue integrating environmental risks into lending and investment decisions, promoting financial stability amid climate threats.
- On International Relations: Could signal U.S. commitment to global climate finance standards (e.g., aligning with Paris Agreement goals), influencing how U.S. banks engage with international partners on sustainable finance.
- Broader Economy: Large banks (e.g., JPMorgan Chase, Bank of America) may face ongoing requirements to address climate risks, potentially increasing costs but reducing long-term systemic financial vulnerabilities from climate events.
Main Stakeholders Affected
- Federal Regulators: Primarily the OCC, which loses authority to rescind its own prior guidance.
- Financial Institutions: Large national banks subject to OCC oversight, who must continue following climate risk principles rather than gaining regulatory relief.
- Congress and Policymakers: Senators Warren and Whitehouse (Democrats focused on financial reform and climate), and the broader Congress, using this to assert oversight over banking regulations.
- Environmental and Advocacy Groups: Organizations like the Sierra Club or consumer watchdogs, who support maintaining climate-focused rules to protect public interests.
- General Public and Investors: Citizens and shareholders in banks, affected by how climate risks influence economic stability and investment practices.
Notable Legal, Constitutional, or Political Implications
- Legal: Relies on the CRA, which provides a fast-track mechanism for Congress to review agency actions within 60 legislative days of submission. If enacted, it sets a precedent for congressional intervention in financial regulatory rollbacks.
- Constitutional: Reinforces Congress's oversight role over executive agencies (Article I powers), balancing separation of powers by checking administrative deregulation without needing new legislation.
- Political: Highlights partisan divides on climate policy; introduced by progressive Democrats, it could spark debates on federal overreach in banking versus environmental protection. Success depends on Senate passage and presidential approval, potentially leading to veto fights in a divided government.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Cosponsors (1)
Sen. Whitehouse, Sheldon [D-RI]
Recent Actions
- 2026-03-05: Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
- 2026-03-05: Introduced in Senate
Bill Versions
- Providing 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 Rescission of Principles for Climate-Related Financial Risk Management for Large Financial Institutions. — issued 2026-03-05 — PDF (2 pages)