This white paper assesses the financial risks posed by climate change to the U.S. Federal Government. It examines multiple agencies, including the USDA, HUD, EPA, DOI, DOT, and HHS, analyzing climate-related impacts on their programs and infrastructure. The analysis uses various modeling techniques and data sources to project future costs associated with events such as extreme weather, wildfires, and sea-level rise. The paper also explores methods for incorporating climate benefits of Federal investments into cost-benefit analyses, using the social cost of greenhouse gases as a key metric. Finally, it highlights the need for proactive adaptation strategies to mitigate these fiscal risks.

Fiscal Risks Across Federal Agencies

The analysis identifies significant financial risks across multiple federal agencies:

USDA: Increased costs for crop insurance payouts due to extreme weather events affecting agricultural productivity.

HUD: Rising expenditures for disaster recovery and housing assistance programs, particularly in flood-prone areas.

EPA: Costs associated with addressing environmental damage and supporting resilience measures.

DOI: Escalating wildfire suppression costs, with projections indicating billions in additional expenditures annually by late-century.

DOT: Infrastructure damage from flooding, hurricanes, and other extreme events leading to higher maintenance and reconstruction costs.

HHS: Greater health care costs due to climate-sensitive diseases and disasters impacting public health systems