US HB5270

Federal Reserve must issue rules within 90 days establishing the models, assumptions, formulas, and methodologies used in stress tests for covered financial companies, including those determining stress capital buffer requirements

Stress capital buffer requirements must be based on results from two or more periodic stress test analyses when available, and the Fed must ensure no double-counting of capital requirements for the same risks

Material changes to stress test methodologies can only be made through notice and comment rulemaking, and stress test scenarios must be publicly disclosed at least 60 days before testing begins

Federal Reserve is prohibited from subjecting any nonbank financial company or bank holding company to climate-related stress tests under section 165(i) of the Financial Stability Act of 2010

GAO must conduct a study and report to Congress every 3 years evaluating the effectiveness of stress tests in assessing the safety and soundness of tested companies and U.S. financial system stability