SEC's Climate Disclosure Rule Faces Yet Another Potential Challenge

On June 4, 2024, the Republican-led House Appropriations Committee released a spending bill that would, among other things, cut funding for financial services agencies, including the United States Securities and Exchange Commission. The bill would allocate $2 billion for operating expenses at the SEC, $589.3 million below the fiscal 2025 budget request and $144.3 million below the agency's 2024 budget. The bill includes a number of policy riders as well, including one that would block funds for the SEC's recently adopted climate risk and greenhouse gas emissions disclosure rule, which requires issuers to disclose their physical and transitional climate risks and their greenhouse gas Scope 1 and Scope 2 emissions, a proposal strongly opposed by Republicans in Congress.