Us Congress House Bill HJR126

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 Federal Deposit Insurance Corporation relating to "Principles for Climate-Related Financial Risk Management for Large Financial Institutions".

Impact

The impact of HJR126 on state laws and financial operations could be considerable. If enacted, the resolution would negate the regulatory framework established by the FDIC, which some advocates argue is crucial for preparing financial institutions to face climate-related risks. Critics of the rule contend that without such regulations, financial institutions may not adequately assess or mitigate potential climate-related financial risks, which could have broader implications for economic stability. Conversely, supporters of the resolution argue that it empowers the financial sector by removing potentially burdensome regulations that could impede business operations.

Summary

HJR126 is a joint resolution aimed at providing congressional disapproval of the rule that was submitted by the Federal Deposit Insurance Corporation (FDIC). This rule pertains to the "Principles for Climate-Related Financial Risk Management for Large Financial Institutions," which was published on October 30, 2023. By passing this joint resolution, Congress seeks to invalidate this rule, effectively preventing it from having any force or effect under federal law. The resolution represents a significant move regarding how financial institutions manage risks related to climate change, reflecting the current legislative priorities surrounding environmental governance and regulatory control.

Sentiment

The sentiment surrounding HJR126 is mixed, with strong opinions across the political spectrum. Supporters of the resolution, primarily from the Republican party, view it as a necessary step to protect businesses from overreaching regulatory mandates that they believe could stifle growth and innovation. On the other hand, environmental advocates and several Democratic lawmakers criticize the bill, asserting that it undermines necessary protections against climate change risks that could jeopardize the financial sector's stability in the long term.

Contention

Debates surrounding HJR126 center on the balance between regulatory oversight and economic freedom. Notable points of contention include differing views on the necessity of climate-related financial risk management regulations. Proponents argue that such regulations are essential for ensuring that financial institutions remain resilient against climate impacts, while opponents fear that imposing these regulations may lead to excessive compliance costs and hinder economic growth. The discussions highlight the broader national conversation regarding climate change and the role of government in regulating its effects on the economy.