PlainBillCongress, translated.Legislation. Context. Public interest.Referred to the House Committee on Financial Services.
Congressional Research Service
No official summary is available in the imported record yet.
People & committees
Rep. Pressley, Ayanna [D-MA-7] · D–MA
Legislative record
A procedural vote is different from passage. Passage in one chamber does not establish enactment. Explore the glossary.
Referred to the House Committee on Financial Services.
Introduced in House
Introduced in House
Primary sources
Text links open the official source. We also preserved the text version used in the PlainBill explanation below.
No related bills are listed in this snapshot. This does not establish whether the proposal has appeared in earlier Congresses.
Source last updated: Oct 9, 2026. Consult Congress.gov for the current record.
AI Conversation Starters
Choose a perspective, copy a prompt, and paste it into your preferred AI. Each prompt includes the bill version and available official source links, and asks for counterarguments as well as supporting evidence.
Analyze H.R.10746 as objectively as possible. Explain its main provisions, who would be affected, possible benefits and harms, implementation, exceptions, and uncertainties. Present the strongest arguments for and against it, and identify evidence needed to assess its public impact.
Examine H.R.10746 through a progressive lens, focusing on fairness, access, economic inequality, and effects on vulnerable communities. Explain potential benefits, costs, and unintended consequences. Consider the strongest counterarguments and distinguish stated goals from demonstrated outcomes.
Examine H.R.10746 through a conservative lens, focusing on fiscal responsibility, institutional stability, federalism, and the scope of government. Explain potential benefits, costs, and unintended consequences. Consider the strongest counterarguments and any provisions that challenge this perspective.
Examine H.R.10746 through a civil-liberties and limited-government lens. Consider individual rights, privacy, voluntary choice, accountability, and government power. Explain tradeoffs, possible safeguards, and the strongest counterarguments without assuming the proposal is beneficial or harmful.
PlainBill explanation
Based on the full Introduced in House · 2026-10-05 text. This explanation has not received human editorial review. This overview describes the proposal’s major provisions; it does not establish what its real-world effects would be.
This proposal would require bank holding companies with at least $50 billion in assets to submit and carry out plans to reduce emissions linked to their investments and financial services. Plans would aim to halve those emissions by 2035, reach zero by 2050, and end fossil fuel financing and assistance in arranging fossil fuel investments by 2035. The bill would also add emissions considerations to financial oversight and require reports on emissions and the transition’s effects on workers and communities.
The term covered bank holding company means a bank holding company with total consolidated assets not less than $50,000,000,000.
(1) submit to the Board an emission reduction plan for reducing emissions in accordance with this section; and (2) if the plan is accepted under subsection (d), implement such plan.
(B) a plan for the covered bank holding company to reach zero financial sector emissions not later than January 1, 2050; (C) a plan to reduce the financial sector emissions of the bank holding company by 50 percent below the emissions baseline year not later than January 1, 2035;
(F) a plan for the covered bank holding company to discontinue all fossil fuel financing and facilitation not later than January 1, 2035;
(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;
(7) identifies the equitable transition needs for workers and communities that will be impacted by a shift to a zero financial sector emissions economy; (8) analyzes— (A) the number and groups of people affected by a transition to zero financial sector emissions; and (B) the economic impact of such a transition with respect to such groups;
The proposed law is titled the Fossil Free Finance Act of 2026. Its direct planning requirements would cover bank holding companies with total consolidated assets of at least $50 billion.
This Act may be cited as the Fossil Free Finance Act of 2026.
(2) Covered bank holding company The term covered bank holding company means a bank holding company with total consolidated assets not less than $50,000,000,000.
“Financial sector emissions” would mean emissions attributed to a covered company’s investments in, or financial services for, other companies or their projects. The definition includes covered bank holding companies and nonbank financial companies supervised under the referenced law. Emissions would be measured in metric tons using a common carbon-dioxide-equivalent measure.
The term financial sector emissions means, with respect to a covered bank holding company, and any nonbank financial company supervised by the Board in accordance with section 113 of the Financial Stability Act of 2010 (12 U.S.C. 5323), the greenhouse gas emissions of such company, expressed in metric tons of carbon dioxide equivalent, attributable to investment in, or the providing of financial services to, another company or project of another company
Emissions accounting would include corporate bonds and shares held on a company’s balance sheet, business loans, private-company investments, project finance, financial products backed by loans or other income-producing assets, and national and subnational government debt.
(A) Financed emissions Emissions from financing activities, including— (i) on-balance sheet listed and unlisted corporate bonds and on-balance sheet listed equity that are traded on a market and are for general corporate purposes; (ii) business loans and equity investments in private companies; (iii) project finance and investment such as on-balance sheet loans or equities to projects or activities that are designated for specific purposes; (iv) securitized and structured products that are backed by identifiable loans, leases, or other income-generating assets; (v) sovereign bonds and loans issued in domestic or foreign currencies; and (vi) sub-sovereign bonds and loans issued by public authorities below the national level such as states, provinces, regions, cities, or municipalities, in either domestic or foreign currency.
The accounting would also include emissions associated with arranging new public debt or share offerings, arranging private-company debt or equity investments, and loans made by two or more lenders under one agreement.
(B) Facilitated emissions Emissions from facilitating activities, including the following: (i) Facilitated new issuance of public debt, including all types of bonds issued for general purposes. (ii) Facilitated new issuance of public equity, including common stock (such as initial public offerings and follow-on issuances) and preferred shares. (iii) Facilitated equity investments in private companies (including private placements). (iv) Facilitated debt investments in private companies (including private credit). (v) A loan made available by 2 or more providers under a common loan agreement.
Fossil fuel financing would cover investments in fossil fuel projects and in companies receiving at least 15 percent of their revenue from specified fossil fuel activities. Fossil fuel facilitation would cover helping arrange those investments.
(5) Fossil fuel facilitation The term fossil fuel facilitation means, with respect to a covered bank holding company, facilitating the investment in— (A) a company that derives not less than 15 percent revenue from exploration, extraction, processing, exporting, transporting, and any other significant action with respect to oil, natural gas, coal, or any byproduct thereof; or (B) a fossil fuel project. (6) Fossil fuel financing The term fossil fuel financing means, with respect to a covered bank holding company, investment in— (A) a company that derives not less than 15 percent revenue from exploration, extraction, processing, exporting, transporting, and any other significant action with respect to oil, natural gas, coal, or any byproduct thereof; or (B) a fossil fuel project.
Fossil fuel projects would include projects supporting or expanding fossil fuel activities and related infrastructure. The new-or-expanded-project category would cover increases in oil, gas or coal reserves, pipeline, terminal or refinery throughput, or fossil fuel burning for utility-scale electricity generation.
(7) Fossil fuel project The term fossil fuel project means a project intended to— (A) facilitate or expand exploration, extraction, processing, exporting, transporting, or any other significant action with respect to oil, natural gas, coal; or (B) construct any infrastructure related to the activities described in subparagraph (A), such as wells, pipelines, terminals, refineries, or utility-sale generation facilities.
(10) New or expanded fossil fuel project The term new or expanded fossil fuel project means a fossil fuel project that would increase the— (A) level of proven or developable oil, natural gas, or coal reserves; (B) midstream throughput of pipelines, terminals, or refineries; or (C) combustion of oil, natural gas, or coal for utility-scale electricity generation.
Covered companies would have to submit their first emissions reduction plan within 210 days after enactment and submit plans at least every two years afterward. They would have to implement accepted plans.
(b) Requirements Not later than 210 days after the date of enactment of this section, and not less than once every 2 years thereafter, a covered bank holding company shall— (1) submit to the Board an emission reduction plan for reducing emissions in accordance with this section; and (2) if the plan is accepted under subsection (d), implement such plan.
Each plan would select a baseline year no later than two years after enactment. It would provide for a 50 percent reduction from that baseline by January 1, 2035, and zero financial sector emissions by January 1, 2050.
(A) a selection of an emissions baseline year that is not later than 2 years after the date of enactment of this section; (B) a plan for the covered bank holding company to reach zero financial sector emissions not later than January 1, 2050; (C) a plan to reduce the financial sector emissions of the bank holding company by 50 percent below the emissions baseline year not later than January 1, 2035;
Required plan elements would include discontinuing new or expanded fossil fuel projects within 60 days after enactment, immediately discontinuing thermal coal financing and facilitation, and ending all fossil fuel financing and facilitation by January 1, 2035. The first two requirements precede the 210-day plan submission deadline.
(D) a plan to discontinue new or expanded fossil fuel projects not later than 60 days after the date of enactment of this section; (E) a plan for the covered bank holding company to immediately discontinue thermal coal financing and facilitation; (F) a plan for the covered bank holding company to discontinue all fossil fuel financing and facilitation not later than January 1, 2035;
Not later than 210 days after the date of enactment of this section, and not less than once every 2 years thereafter, a covered bank holding company shall— (1) submit to the Board an emission reduction plan for reducing emissions in accordance with this section;
Plans would also eliminate financing and facilitation of commodities whose production or extraction significantly converts natural forests to other uses. This plan element has no separate deadline. The definition covers globally traded goods from current or former natural forests; qualifying forests must have a significant percentage of native species and more than 10 percent canopy cover over at least 0.5 hectares.
(G) a plan for the covered bank holding company to eliminate financing and facilitation of deforestation risk commodities;
(3) Deforestation risk commodities The term deforestation risk commodities means globally traded goods and raw materials— (A) that originate from natural forest ecosystems— (i) directly from within forest areas; or (ii) from areas previously under forest cover; and (B) the extraction or production of which contributes significantly to the conversion of natural forest to agriculture, tree plantation, or other nonforest land use.
(9) Natural forest The term natural forest means a natural arboreal ecosystem that— (A) has a species composition a significant percentage of which is native species; and (B) contains a tree canopy cover of more than 10 percent over an area of not less than 0.5 hectares.
Plans could not use carbon offsets—emissions reductions or removals counted to compensate for an entity’s emissions. They could include proven technologies that remove carbon, subject to no negative impact on low-income, minority or indigenous communities. However, that permission expressly refers to the baseline-year requirement, leaving its relationship to the reduction targets unclear.
The term carbon offsets means an emissions reduction or removal of greenhouse gases in a manner calculated and traced for the purpose of offsetting an entity’s greenhouse gas emissions.
(2) may not include carbon offsets; (3) may include proven negative carbon emission technologies to meet the requirements under paragraph (1)(A) if the technologies do not negatively impact low-income, minority, or indigenous communities;
(A) a selection of an emissions baseline year that is not later than 2 years after the date of enactment of this section;
Plans would prioritize withdrawing funding from companies and projects that disproportionately harm low-income and minority communities. They would also prioritize lending to companies for severance, retraining and other benefits for workers affected by the transition.
(4) shall prioritize— (A) the covered bank holding company withdrawing funding from companies and projects that have a disproportionately negative impact on the health and well-being of low-income and minority communities; (B) lending to companies for purposes of carrying out severance, retraining, and other benefits to workers impacted by the transition to zero financial sector emissions;
Plans would prioritize closer examination of financing’s effects on biodiversity and communities, and of clients’ emissions management and compliance records. The Board could require additional plan elements it determines necessary to protect U.S. financial stability.
(C) enhanced due diligence about the impacts of financing on biodiversity and community and the framework of the client for and track record in— (i) managing greenhouse gas and other emissions; and (ii) compliance with regulations and international standards.
(H) such other requirements as the Board determines is necessary to protect the financial stability of the United States;
Within 180 days after receiving a plan, the Board would have to accept it or reject it for failing to align with science-based targets without offsets or unproven emissions reduction technologies. Rejected plans would have to be revised according to the Board’s suggestions.
(d) Consideration of plan Not later than 180 days after the date on which the Board receives a plan submitted under subsection (b)(1), the Board shall— (1) accept the plan; or (2) (A) reject the plan if the plan does not align with science-based targets without the use of offsets or unproven carbon emission reduction technologies; and (B) require the covered bank holding company to revise such plan in accordance with the suggestions of the Board.
The Board would have to issue regulations governing plan format and submission timing within 180 days after enactment.
(f) Regulations Not later than 180 days after the date of enactment of this section, the Board shall issue regulations establishing the format and timing for submission of the plans required under this section.
If a covered company failed to submit a compliant plan or meet its plan’s requirements, the Board would have to apply penalties under the referenced section 8, require divestiture—disposing of assets—to bring emissions into compliance, and notify the Federal Deposit Insurance Corporation. The supplied text does not reproduce the referenced penalties.
(e) Penalties If a covered bank holding company does not submit a plan in accordance with this section or meet the requirements set out in such a plan— (1) the Board shall— (A) apply the penalties under section 8 under regulations prescribed by the Board; (B) require divestiture of assets in order to bring the financial sector emissions of a covered bank holding company into compliance with the requirements set out in such a plan; and (C) notify the Board of Directors of the Federal Deposit Insurance Corporation of the noncompliance of the covered bank holding company;
The Federal Deposit Insurance Corporation would have discretion to terminate a controlled depository institution’s insured status or take other corrective action under the cited existing laws. This authority would concern a notified noncompliant holding company or a subsidiary contributing to its noncompliance.
(2) the Board of Directors of the Federal Deposit Insurance Corporation may, with respect to any covered bank holding company described in paragraph (1)(C) or a subsidiary of the bank holding company that contributes to the failure of the covered bank holding company to comply with this section— (A) terminate the insured status of the insured depository institution of which the bank holding company has control under section 8(a)(2) of the Federal Deposit Insurance Act (12 U.S.C. 1818(a)(2)); and (B) carry out any other corrective action available under section 38 of the Federal Deposit Insurance Act (12 U.S.C. 1831o) for the insured depository institution of which the bank holding company has control under section 8(a)(2) of the Federal Deposit Insurance Act (12 U.S.C. 1818(a)(2)).
Section 3 would add a company’s nontrivial contribution to U.S. financial sector emissions as a consideration in two existing statutory lists governing supervision and regulation of certain nonbank financial companies. It would not make that contribution an automatic designation rule in the supplied language.
(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 .
Section 3 would add “divestiture of financial sector emissions” to a provision about developing financial safety standards. It would also add emissions reduction plans under the proposed section 15 to an existing list of required standards. The surrounding statutory rules determining these provisions’ full reach are not supplied.
(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.
For its reporting section, the bill defines science-based emissions targets as reductions consistent with preventing global average warming of 1.5 degrees Celsius or more above pre-industrial levels. This is the proposed reporting benchmark, not evidence that the bill would achieve that result.
(a) Definitions In this section:
(2) Science-based emissions targets The term science-based emissions targets means reduction in greenhouse gas emissions consistent with preventing an increase in global average temperature of not less than 1.5 degrees Celsius compared to pre-industrial levels.
Within 180 days after enactment, the Federal Reserve Board would have to report to Congress on current financial sector emissions, reduction trends, covered companies’ commitments, and estimated emissions levels needed to meet the reporting targets.
(b) Initial report Not later than 180 days after the date of enactment of this Act, the Board of Governors of the Federal Reserve System shall submit to Congress a report that— (1) identifies the current level of financial sector emissions in the financial system of the United States; (2) includes an analysis of trends in financial sector emissions reductions; (3) includes a summary of the commitments of covered bank holding companies to reduce financial sector emissions; (4) estimates the financial sector emissions in the financial system of the United States needed to meet science-based emissions targets;
The initial report would identify regulatory gaps beyond the Board’s existing authority and problems with emissions data quality, with recommendations for addressing both.
(5) identifies regulatory gaps in reducing financial sector emissions that cannot be addressed with authorities of the Board and recommendations for addressing such gaps; (6) identifies data quality challenges for assessing financial sector emissions and recommendations to address those challenges;
The initial report would assess workers’ and communities’ transition needs, identify how many people and which groups would be affected, and analyze economic impacts on those groups. These are required subjects for analysis, not established findings about the bill’s effects.
(7) identifies the equitable transition needs for workers and communities that will be impacted by a shift to a zero financial sector emissions economy; (8) analyzes— (A) the number and groups of people affected by a transition to zero financial sector emissions; and (B) the economic impact of such a transition with respect to such groups;
The report would identify options to ease economic impacts, including use of existing community reinvestment and emergency lending authorities and establishment of a public investment bank. This reporting requirement would not itself establish or fund such a bank.
(9) identifies regulatory and legislative options for mitigating the economic impacts described in paragraph (8)(B), including— (A) the use of existing authorities, including the Community Reinvestment Act of 1977 (12 U.S.C. 2901 et seq.) and emergency lending powers under section 13 of the Federal Reserve Act (12 U.S.C. 342); and (B) the establishment of a public investment bank to finance investment in an equitable transition to a zero financial sector emissions economy.
A separate recurring report would also be due within 180 days after enactment and at least every two years afterward. It would assess progress toward emissions targets and an equitable transition, update needed emissions estimates, and recommend assistance from Congress and federal agencies. This requirement states no end date.
(c) Periodic report Not later than 180 days after the date of enactment of this Act, and not less than once every 2 years thereafter, the Board of Governors of the Federal Reserve System shall submit to Congress a report that includes— (1) an analysis of the progress against aligning with financial sector emissions targets; (2) the estimates described in subsection (b)(4); (3) an analysis of the progress made in the preceding 2 years toward an equitable transition to a zero financial sector emissions economy; and (4) recommendations with respect to assistance Congress and Federal agencies may provide to— (A) facilitate a reduction of financial sector emissions; and (B) support an equitable transition to a zero financial sector emissions economy.
The Federal Reserve Board would collect the data needed for these reports from bank holding companies. This collection provision is not expressly limited to the defined category of covered bank holding companies.
(d) Collection of data The Board of Governors of the Federal Reserve System shall collect such data as needed from bank holding companies to carry out the reports required under this section.
The supplied official-actions snapshot, updated October 9, 2026, records introduction in the House and referral to the House Committee on Financial Services on October 5, 2026. It does not establish what happened after that snapshot.
Source snapshot updated 2026-10-09T20:42:37Z. 2026-10-05: Referred to the House Committee on Financial Services. 2026-10-05: Introduced in House
A closer look
Reviewed version: Introduced in House · 2026-10-05. These findings describe provisions and who may benefit; they are not judgments of waste, corruption, or motive.
This review covers the supplied bill text. “None identified” does not rule out provisions in later versions or accompanying reports and disclosures.
Provisions outside the bill’s main subject, or policy changes attached to appropriations.
None identified in the reviewed text
No unrelated provision or policy rider attached to appropriations was identified in the complete supplied introduced text. This conclusion is limited to that version and does not establish absence in other versions or accompanying materials.
Spending directed to particular recipients or places outside ordinary competitive or formula-based allocation.
None identified in the reviewed text
No congressionally directed spending for particular recipients or places was identified in the complete supplied introduced text. This conclusion is limited to that version; formal earmark determinations may require accompanying materials that are not supplied.
Narrow exceptions, exemptions, or preferential treatment that warrant a closer look.
None identified in the reviewed text
No materially narrow preferential exemption, carve-out or special benefit was identified in the complete supplied introduced text under the requested criteria. This conclusion is limited to that version and does not establish absence in other versions or accompanying materials.
Full text preserved for this analysis. Legislative record snapshot: Oct 9, 2026. How PlainBill uses AI