Fossil Free Finance Act of 2026

(a) Authority To require supervision and regulation of certain nonbank financial companies. Section 113 of the Financial Stability Act of 2010 (12 U.S.C. 5323) is amended—

(1) in subsection (a)(2)—

(A) in subparagraph (J), by striking and at the end;

(B) by redesignating subparagraph (K) as subparagraph (L); and

(C) by inserting after subparagraph (J) the following:

(K) the extent to which the company makes a nontrivial contribution to the financial sector emissions, as defined in section 15 of the Bank Holding Company Act of 1956, of the financial system of the United States; and

; and

(2) in subsection (b)(2)—

(A) in subparagraph (J), by striking and at the end;

(B) by redesignating subparagraph (K) as subparagraph (L); and

(C) by inserting after subparagraph (J) the following:

(K) the extent to which the company makes a nontrivial contribution to the financial sector emissions, as defined in section 15 of the Bank Holding Company Act of 1956, of the financial system of the United States; and

(b) Enhanced supervision and prudential standards for nonbank financial companies supervised by the board of governors and certain bank holding companies

(1) Development of prudential standards. Section 115(b)(1) of the Financial Stability Act of 2010 (12 U.S.C. 5325(b)(1)) is amended—

(A) in subparagraph (H), by striking and;

(B) in subparagraph (I), by striking the period at the end and inserting ; and; and

(C) by adding at the end the following:

(J) divestiture of financial sector emissions, as defined in section 15 of the Bank Holding Company Act of 1956.

(2) Required standards. Section 165(b)(1)(A) of the Financial Stability Act of 2010 (12 U.S.C. 5365(b)(1)(A)) is amended—

(A) in clause (iv), by striking and at the end;

(B) in clause (v), by striking the period and inserting ; and; and

(C) by adding at the end the following:

(vi) emissions reduction plans in accordance with section 15 of the Bank Holding Company Act of 1956.