The Ending Fossil Fuel Bailouts Act of 2026 modifies U.S. bankruptcy law to prioritize environmental cleanup costs when oil, gas, and coal companies file for bankruptcy. Under the bill, fossil fuel companies must fulfill all environmental reclamation obligations and cleanup costs associated with their operations before paying shareholders, unsecured creditors, and other claims, with the exception of certain employee wages. The legislation also prevents fossil fuel companies from abandoning contaminated or polluted assets during bankruptcy proceedings and extends the lookback period for recovering fraudulent transfers related to executive compensation from 4 years to 10 years. Additionally, the bill makes parent companies, private equity firms, and hedge funds that own shares in bankrupt fossil fuel companies jointly and severally liable for unpaid environmental cleanup costs. The provisions apply only to bankruptcy cases filed after the law's enactment and are designed to ensure that taxpayers and communities are not left responsible for cleaning up environmental damage from fossil fuel operations.