A resolution recognizing the strong link between climate change and skyrocketing insurance premiums.

Bill Number

S.Res. 554

Origin Chamber

Senate

Congress

119th Congress, Session 1

Policy Area

Finance and Financial Sector

Status

Introduced

Latest Action

2025-12-17: Referred to the Committee on Banking, Housing, and Urban Affairs.

Last Updated

2026-01-06T18:23:28Z

AI-Generated Summary

Purpose

This Senate Resolution (S. Res. 554) aims to formally acknowledge the connection between climate change—increasing the frequency and intensity of natural disasters—and the rapid rise in homeowners' insurance premiums across the United States, highlighting how this makes housing less affordable.

Key Provisions

• Background Facts (Whereas Clauses):
• Insured losses from natural disasters in the U.S. now exceed $100 billion annually, a 1,000% increase from $8.4 billion in 2000.
• Insurance costs doubled from 2013 to 2022 and now make up more than 20% of mortgage payments.
• Premiums have risen 40% faster than general inflation rates.
• Projections show an additional 8% increase in 2025, with national averages exceeding $3,500 per year.
• In 2024, average annual premiums were over $14,000 in Florida, nearly $11,000 in Louisiana, almost $8,000 in Oklahoma, $6,000 in Texas and Colorado, and around $5,000 in Alabama, Mississippi, and Nebraska.
• Lenders typically require borrowers to have insurance to approve mortgages.
• Core Resolution: The Senate recognizes that climate change-driven risks are inflating insurance costs for U.S. homeowners and warns that ignoring climate change will worsen housing affordability.

Significant Changes to Existing Law

None. As a non-binding resolution, it does not amend or create new laws; it serves as a declarative statement to express the Senate's position.

Potential Impacts

• On Citizens: Raises awareness of how climate-related disasters contribute to higher insurance costs, potentially making homeownership more challenging, especially in disaster-prone states like Florida and Louisiana, where premiums are already burdensome.
• On Government Agencies: Could encourage federal agencies (e.g., those handling disaster response or housing policy) to prioritize climate adaptation in future budgets or regulations, though it imposes no direct obligations.
• On International Relations: Minimal direct impact, but it underscores U.S. domestic concerns about climate change, which might indirectly support global discussions on environmental policy.
• Broader Effects: May influence public discourse and pressure for legislative action on climate mitigation, without immediate enforceable changes.

Main Stakeholders Affected

• Homeowners and Potential Buyers: Directly impacted by rising premiums that increase housing costs and mortgage accessibility.
• Insurance Companies and Lenders: Highlighted for their role in pricing risks and requiring coverage, potentially facing scrutiny or calls for reform.
• Residents in High-Risk States: Particularly those in Florida, Louisiana, Texas, and similar areas with elevated premiums due to frequent disasters.
• Policymakers and Senators: The resolution's sponsors (e.g., Senators Whitehouse, Merkley, and others) and the Committee on Banking, Housing, and Urban Affairs, which will review it, positioning them as advocates for climate-linked policy changes.
• Environmental and Housing Advocates: Groups focused on climate action or affordable housing may use this to push for broader reforms.

Notable Legal, Constitutional, or Political Implications

• Legal: No enforceable effects, as resolutions like this are symbolic and do not carry the force of law (unlike bills that become statutes).
• Constitutional: Aligns with Congress's role in expressing policy views under Article I, without infringing on executive or judicial powers.
• Political: Signals bipartisan or cross-party concern (introduced by a group of Democratic senators) on climate and economic issues, potentially galvanizing support for future bills addressing disaster insurance or emissions reductions; it may also highlight regional disparities, influencing elections in vulnerable states.

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

Sponsor

Sen. Whitehouse, Sheldon [D-RI]

Cosponsors (10)

Sen. Merkley, Jeff [D-OR], Sen. Schatz, Brian [D-HI], Sen. Markey, Edward J. [D-MA], Sen. Van Hollen, Chris [D-MD], Sen. Duckworth, Tammy [D-IL], Sen. Smith, Tina [D-MN], Sen. Padilla, Alex [D-CA], Sen. Welch, Peter [D-VT], Sen. Blunt Rochester, Lisa [D-DE], Sen. Klobuchar, Amy [D-MN]

Recent Actions

• 2025-12-17: Referred to the Committee on Banking, Housing, and Urban Affairs.
• 2025-12-17: Introduced in Senate

Bill Versions

• Recognizing the strong link between climate change and skyrocketing insurance premiums. — issued 2025-12-17 — PDF (2 pages)