Unlocking Change: How Congress Can Leverage the Congressional Review Act to Revise Environmental, Climate, and Energy Policies from the Previous Administration

On January 30, 2025, Senator John Kennedy from Louisiana introduced a resolution to repeal the recent guidance on carbon credits from the Commodity Futures Trading Commission (CFTC). This guidance, which helps certain regulated markets decide how to handle voluntary carbon credit contracts, has become a point of contention.

Under the Congressional Review Act (CRA), Congress can cancel a federal agency’s final action, including guidance, if both chambers of Congress approve it and the president signs it. If successful, the guidance in question would be immediately rendered void. Moreover, once a rule is disapproved, the agency cannot issue a similar rule without further Congressional action.

Historically, the CRA has been used to overturn various regulations, especially during presidential transitions. Since early 2025, Congress has introduced 26 resolutions aimed at reversing Biden-era rules related to climate and the environment. So far, two have passed in one chamber, four are awaiting presidential review, and six have already been signed into law by President Trump. Among those signed is a measure that canceled the Environmental Protection Agency’s methane fee and others concerning energy conservation rules.

While the CFTC guidance isn’t a formal rule, it received scrutiny under the CRA because it implies the agency’s future intentions. According to the Government Accountability Office (GAO), the guidance to the CFTC wasn’t properly submitted for CRA review. However, it’s still regarded as enforceable under the act since it conveys the CFTC’s expectations for voluntary carbon listings. Significantly, the Congressional Record labeled it a "rule" regarding carbon credit derivatives.

For the joint resolution to take effect, both the House and Senate needed to approve it, followed by the president’s signature. Although a similar resolution was presented in the House, there was no further action taken by the deadline of May 12, 2025, leading to the resolution’s failure. Nevertheless, the CFTC could still revoke the guidance through other regulatory processes if it chooses.

Overall, this resolution illustrates Congress’s push to quickly dismantle climate regulations enacted by the previous administration. According to recent surveys, public opinion on climate regulations remains mixed. Some argue that swift action is necessary for economic growth, while others stress the importance of environmental protections. This ongoing debate highlights the challenge of balancing economic interests and environmental responsibilities.

For more on the implications of the CRA, you can read about it here.

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