In a report that was released this week, the Biden administration stated that climate change is causing major economic issues in the United States. According to an article published by the administration’s economists, the hypotheses that higher-income nations like the United States would be able to weather the risks brought on by global warming in a safe and predictable manner have been proven to be false. The White House Council of Economic Advisers wrote in their report that a “wide range of risks” are currently affecting the “well-being of American communities,” particularly low-income and minority communities.

The report warns that the public health and health care systems are at risk from heat, flooding, wildfires, and diseases that spread from animals to humans. Infrastructure worth trillions of dollars, including roads, bridges, and, most importantly, homes, are susceptible to flooding, posing significant challenges for the insurance industry and federal mortgage lenders in the United States.

Additionally, the federal government as well as local and state governments are experiencing financial strain as a result of the cost of responding to natural disasters like drought and hurricanes, which has reached hundreds of billions of dollars in some recent years.