Kelly, Gallego Introduce Legislation to Quantify Economic Costs of Extreme Heat
Today, Arizona Senators Mark Kelly and Ruben Gallego introduced the Extreme Heat Economic Study Act of 2025, legislation that would direct a federal study to determine the growing financial impacts of extreme heat. As Arizona and other states continue to face longer, more dangerous heatwaves, this bill would require the federal government to measure the true cost of extreme heat on public health, infrastructure, labor productivity, and the broader economy. That will better enable communities suffering from extreme heat to access the financial resources necessary to build out mitigation, preparedness, and disaster response efforts. Companion legislation will be introduced in the House of Representatives by Representative Yassamin Ansari (D-AZ-03).
“Extreme heat is costing lives, draining local budgets, and straining our infrastructure. We’ve got to quantify the financial impact, so Arizona can get resources needed to manage it,” said Kelly. “This is about making sure families, cities, and first responders have the facts to deal with dangerous heat and unlock the resources they need when it hits.”
“Extreme heat isn’t just uncomfortable, it’s costly – damaging infrastructure, slowing down work, and taxing our health care system,” said Gallego. “But to truly understand the financial impacts of extreme heat, we need to quantify it. By conducting an economic study of extreme heat, we’ll be able to lay out the full scope of the damages and show that extreme heat truly is a natural disaster.”
“I’m proud to lead House efforts on the Extreme Heat Economic Study Act because communities in Arizona’s 3rd District are already feeling the very real costs of extreme heat—whether it’s families struggling with high energy bills or workers facing dangerous conditions. This bill is about making those costs visible so we can get our communities the federal support they deserve to prepare and respond to this crisis,” said Ansari.
“The Extreme Heat Economic Study Act is a critical step toward recognizing the full scope of harm extreme heat causes to our communities, not just to public health, but to our economy and infrastructure. The rising costs associated with extreme heat, from healthcare to lost productivity, demand our attention. These costs are only projected to grow, and we need to understand the burden on our state. Quantifying these economic impacts through this study will provide Arizona with the data to secure resources and build resilience. As Arizona’s first Chief Heat Officer, I’ve seen firsthand how heat strains our hospitals, reduces productivity, and endangers vulnerable Arizonans. This data will be essential for developing effective strategies to ensure a thriving Arizona for all,” said Dr. Eugene Livar, Chief Heat Officer, Arizona Department of Health Services.
“The Extreme Heat Economic Study Act is vital to quantifying the costs of extreme heat so Arizonans can access funding for mitigation and disaster response. While Arizona is a leader in extreme heat preparedness and resiliency, there are gaps that prevent our communities from accessing critical resources for emergencies and proactive mitigation efforts,” said Maren Mahoney, Director of the Arizona Governor’s Office of Resiliency. “It’s important we learn more about the economic damages of heat to fully understand the full scope of heat’s impacts on people and the built environment, as well as quantify the benefits of mitigating heat.”
Background:
The Extreme Heat Economic Study Act would direct the National Integrated Heat Health Information System (NIHHIS) and its member agencies to develop, conduct and publish a study within four years that quantifies the economic costs of extreme heat events. This study will take into account public health costs, insurance and workers’ compensation claims, energy costs, damage to crops and livestock, losses from decreased labor productivity and business interruptions, and other economic impacts as appropriate. The study would also provide recommendations for building a national tracking system for heat-related health care costs and labor productivity losses.
Specifically, the bill:
- Directs NIHHIS, in coordination with member agencies, to conduct and publicly release an economic impact study of the financial costs of extreme heat within four years of the bill’s enactment.
- Requires the study to examine:
- Health care and medical assistance costs
- Insurance and workers’ compensation claims
- Labor productivity and business interruptions
- Infrastructure damage
- Energy costs
- Agricultural losses
3. Requires recommendations on developing a national system to track and publicly report heat-related health care costs, metrics for improving accuracy of heat death reporting, and measures of labor productivity losses.
4. Authorizes $3.5 million to carry out the study.
Click here to read the bill text.
