Us Congress House Bill HJR125

Us Congress 2023-2024 Regular Session

• Introduced: 4/5/24
• Refer: 4/5/24
• Report Pass: 4/17/24

Caption

Providing for congressional disapproval under chapter 8 of title 5, United States Code, of the rule submitted by the Board of Governors of the Federal Reserve System relating to "Principles for Climate-Related Financial Risk Management for Large Financial Institutions".

Impact

Should HJR125 pass, it would prevent the implementation of the Federal Reserve's rule aimed at managing climate-related financial risks that affect large banks and financial institutions. The disapproval could impact how these institutions prepare for and handle the financial implications of climate change, potentially reducing their accountability in managing related risks. The measure is part of a broader trend to limit regulatory oversight in the area of environmental and climate-related risk assessment in financial practices.

Summary

HJR125 is a joint resolution that aims to disapprove a rule proposed by the Board of Governors of the Federal Reserve System regarding 'Principles for Climate-Related Financial Risk Management for Large Financial Institutions'. This resolution highlights Congress's authority to review and potentially nullify regulations under the Administrative Procedure Act. By stating that the proposed rule shall have no force or effect, the resolution signifies a legislative check on executive regulatory actions, particularly in the financial sector.

Sentiment

The sentiment surrounding HJR125 indicates a mix of support and opposition. Proponents argue that the bill represents a necessary protective step against excessive regulation that some believe could hamper financial institutions' operations. However, opponents express concern that disapproving the rule diminishes the financial system's resilience to climate change, which could have long-term repercussions on economic stability and sustainability.

Contention

A notable point of contention surrounding HJR125 is the tension between ensuring financial stability and addressing climate-related risks. Supporters of the disapproval assert that regulations imposed by the Federal Reserve could be overly burdensome and may not effectively address the realities of risk management in banking. Conversely, critics warn that blocking such regulations could leave financial institutions ill-prepared for the economic impacts of climate change, potentially leading to greater risks for the financial system.