Living Donor Protection Act of 2023

Summary of HR 2923: Nullification of Climate-Related Financial Risk Guidance

Bill Number: HR 2923

Title: To nullify certain interagency guidance related to climate-related financial risk management for large financial institutions

Status: Introduced in House

Introduced Date: April 17, 2025

Classification: Bill

Purpose and Intent

The primary purpose of HR 2923 is to nullify the interagency guidance titled Principles for Climate-Related Financial Risk Management for Large Financial Institutions, which was issued by the Board of Governors of the Federal Reserve System, the Comptroller of the Currency, and the Federal Deposit Insurance Corporation on October 24, 2023. This bill aims to prevent these agencies from enforcing this guidance or issuing any similar directives in the future.

Key Provisions

• Nullification of Guidance: The bill explicitly states that the aforementioned interagency guidance shall have no force or effect. This means that large financial institutions would not be required to adhere to the principles outlined in the guidance regarding climate-related financial risks.

• Prohibition on Similar Guidance: The bill also prohibits the involved agencies from issuing any substantially similar guidance in the future, effectively barring them from implementing comparable regulations concerning climate-related financial risk management.

Affected Parties

• Large Financial Institutions: The primary entities affected by this bill are large financial institutions that would have been subject to the climate-related financial risk management principles outlined in the guidance. The nullification may reduce regulatory burdens on these institutions regarding climate risk assessments and disclosures.

• Regulatory Agencies: The Board of Governors of the Federal Reserve System, the Comptroller of the Currency, and the Federal Deposit Insurance Corporation will be directly impacted, as they will lose the ability to enforce the guidance and create similar regulations.

Legislative Actions

• April 17, 2025: The bill was introduced in the House and referred to the House Committee on Financial Services for further consideration.

Sponsors

• Primary Sponsor: Troy Balderson
  
• Cosponsor: August Pfluger
  

Conclusion

HR 2923 seeks to eliminate specific regulatory guidance aimed at managing climate-related financial risks for large financial institutions, thereby reducing regulatory oversight in this area. The bill's progress will be monitored as it moves through the legislative process, particularly its reception within the House Committee on Financial Services.