This legislation aims to address the financial risks posed by climate change to the U.S. financial system while enhancing oversight and transparency in the homeowners insurance market. It establishes two new committees within the Financial Stability Oversight Council: the Climate Financial Risk Committee and the Climate Financial Risk Advisory Committee. These committees will focus on identifying, assessing, and mitigating climate-related financial risks, facilitating communication among member agencies, and collaborating with the Office of Financial Research to analyze relevant data.