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This bill requires the Federal Reserve to create clear, written rules explaining how it calculates stress capital buffer requirements for large banks, which are funds banks must hold as safety margins. The Federal Reserve would have 90 days after the bill's passage to establish these rules, and any future changes could only be made through the standard public notice-and-comment rulemaking process. Additionally, the bill requires the Federal Reserve to publicly announce the stress test scenarios it will use at least 30 days before conducting annual stress tests on large financial institutions, and it prohibits the Federal Reserve from conducting climate-related stress tests on nonbank financial companies. The bill also directs the Government Accountability Office to review the Federal Reserve's stress testing practices every three years and report to Congress on whether these tests are effective at identifying financial risks and promoting preparedness. The legislation aims to increase transparency and accountability in how the Federal Reserve tests financial institutions' ability to withstand economic downturns.

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