The White House predicts that climate change could result in an annual loss of $2 trillion for the United States by the end of the century.

• By the end of the century, the U.S. federal budget could face an annual cost of about $2 trillion due to the intensification of natural disasters such as floods, drought, wildfires, and hurricanes, according to the White House.
• The Office of Management and Budget's analysis suggests that the U.S. government could allocate an additional $25 billion to $128 billion annually for expenses such as coastal disaster relief, flood insurance, and crop insurance.
• The United Nations' climate science panel released a report on the same day as the news, which stated that achieving global warming of 1.5 degrees Celsius above preindustrial levels would necessitate peaking greenhouse gas emissions before 2025.

By the end of the century, the White House estimates that the U.S. federal budget could lose about 7.1% annually due to the increased occurrence of floods, drought, wildfires, and hurricanes, which are all being exacerbated by climate change. This could result in a total cost of approximately $2 trillion each year.

The Office of Management and Budget's analysis warned that the U.S. government could spend an additional $25 billion to $128 billion annually on areas such as coastal disaster relief, flood insurance, crop insurance, health-care insurance, wildland fire suppression, and flooding at federal facilities.

The economic impact of climate change is significant, according to a blog post by Candace Vahlsing, the OMB's associate director for climate, and Danny Yagan, its chief economist, published on Monday.

Greenhouse gas emissions could lead to even greater damages if they continue unchecked, according to a report.

The United Nations' climate science panel released a report on the same day as the news, which stated that achieving global warming of 1.5 degrees Celsius above preindustrial levels would necessitate peaking greenhouse gas emissions before 2025.

By 2100, the world is expected to warm by 1.3 degrees Celsius above preindustrial levels, with temperatures already having risen by 1.1 degrees Celsius.

The OMB's analysis predicted that the cost of federal fire suppression could increase by between $1.55 billion and $9.60 billion annually due to intensifying wildfires, representing an increase of between 78% and 480% by the end of the century. Additionally, the OMB warned that more frequent hurricanes could drive up annual spending on coastal-disaster response to between $22 billion and $94 billion by 2100.

The analysis predicts that 12,000 federal buildings could be flooded by 10 feet due to rising sea levels, with total replacement costs of more than $43.7 billion. However, this scenario is on the high side, as a 2021 report from the U.S. National Oceanic and Atmospheric Administration predicts a range of sea level rise in the U.S. between 0.6 meters (nearly two feet) and 2.2 meters (just over seven feet) by the end of the century.

Biden's 2023 budget proposal includes $45 billion for climate change, clean energy, and environmental justice programs, with a 60% increase in climate funding compared to 2021, despite his climate change legislation being stalled in Congress.

The climate portion of the $1.75 trillion House-passed bill, known as the Build Back Better Act, would represent the largest federal clean energy investment and could aid the U.S. in achieving approximately half of President Biden's goal to reduce emissions by 2030, as determined by the nonpartisan analysis firm Rhodium Group.

Biden stated earlier this year that he might have to abandon the plan, but he still believes that Congress will pass certain parts of it, including $555 billion for climate spending.