Fossil Free Finance Act of 2026
Latest action (5 Oct 2026): Introduced
What this bill does
The Fossil Free Finance Act of 2026, if enacted, would require large bank holding companies (those with at least $50 billion in assets) to develop and implement plans to reduce their "financial sector emissions." These emissions include those from investments and financial services provided to companies and projects, encompassing financed emissions from various types of loans and investments, and facilitated emissions from issuing debt and equity. The act also defines "fossil fuel financing" and "fossil fuel projects," and would require bank holding companies to discontinue financing new or expanded fossil fuel projects and thermal coal financing immediately upon enactment, with a goal to end all fossil fuel financing and facilitation by January 1, 2035.
The bill would affect covered bank holding companies by mandating emission reduction plans, with specific targets: a 50% reduction below a chosen baseline year by January 1, 2035, and zero emissions by January 1, 2050. These plans cannot rely on carbon offsets and must prioritize investments in worker retraining and communities affected by the transition. The legislation also aims to incorporate a company's contribution to financial sector emissions into the designation process for nonbank financial companies supervised by the Financial Stability Oversight Council. Additionally, the Board of Governors of the Federal Reserve System would be required to report to Congress on financial sector emissions levels, progress, and equitable transition needs.
This bill was introduced in the House of Representatives on October 5, 2026, and has been referred to the Committee on Financial Services. As it is newly introduced, it has not yet been voted on by the committee or the full House, nor has it been considered by the Senate.
Plain-English summary generated by Bill100 AI from the official record. Always verify against the source below.
Official summary
This bill is in the first stage of the legislative process. It was introduced into Congress on October 5, 2026. It will typically be considered by committee next before it is possibly sent on to the House or Senate as a whole.
Common questions
- What does H.R. 10746 do?
- The Fossil Free Finance Act of 2026, if enacted, would require large bank holding companies (those with at least $50 billion in assets) to develop and implement plans to reduce their "financial sector emissions." These emissions include those from investments and financial services provided to companies and projects, encompassing financed emissions from various types of loans and investments, and facilitated emissions from issuing debt and equity. The act also defines "fossil fuel financing" and "fossil fuel projects," and would require bank holding companies to discontinue financing new or expanded fossil fuel projects and thermal coal financing immediately upon enactment, with a goal to end all fossil fuel financing and facilitation by January 1, 2035. The bill would affect covered bank holding companies by mandating emission reduction plans, with specific targets: a 50% reduction below a chosen baseline year by January 1, 2035, and zero emissions by January 1, 2050. These plans cannot rely on carbon offsets and must prioritize investments in worker retraining and communities affected by the transition. The legislation also aims to incorporate a company's contribution to financial sector emissions into the designation process for nonbank financial companies supervised by the Financial Stability Oversight Council. Additionally, the Board of Governors of the Federal Reserve System would be required to report to Congress on financial sector emissions levels, progress, and equitable transition needs. This bill was introduced in the House of Representatives on October 5, 2026, and has been referred to the Committee on Financial Services. As it is newly introduced, it has not yet been voted on by the committee or the full House, nor has it been considered by the Senate.
- Has H.R. 10746 become law?
- Not yet. As of 5 Oct 2026, H.R. 10746 is introduced.
- Who sponsored H.R. 10746?
- H.R. 10746 was sponsored by Rep. Ayanna Pressley [D-MA7] (Democrat-MA), with 0 cosponsors.
- What's the latest action on H.R. 10746?
- Introduced (5 Oct 2026).
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