The "Countering Atmospheric Nuisances Arising from Drifting Airborne Foreign Incendiary Residual Emissions Act," or the CANADA FIRE Act , aims to protect the health, safety, and economic security of the United States from significant air pollution originating from Canadian wildfires. Congress finds that repeated transboundary smoke events from Canada in 2026 caused unhealthy air quality, disrupted activities, increased health risks, and imposed costs, despite Canada possessing the capacity to mitigate these risks. The bill establishes a policy to hold foreign government officials accountable for preventable environmental conditions causing harm in the U.S. and to encourage Canada to adopt effective wildfire prevention and management policies, share timely information, and cooperate with U.S. authorities. It mandates the President to determine within 30 days of enactment if material transboundary smoke events from Canada occurred in the preceding year and if Canada failed to take reasonable measures to address them, triggering sanctions upon an affirmative determination. These include blocking property and prohibiting transactions with "responsible foreign persons," such as senior Canadian officials involved in forestry, land management, or wildfire response, or those who obstructed mitigation efforts or concealed information. Additionally, these individuals would be inadmissible to the United States , and their visas would be revoked. Sanctions against the Government of Canada itself are also mandated, including prohibiting U.S. government contracts, denying Export-Import Bank assistance, and requiring the U.S. to oppose loans at international financial institutions. The President must also impose at least three additional sanctions, which may include restricting banking transactions, sovereign debt purchases, new equity investments, or imports from Canadian government-owned entities. The bill expresses a Sense of Congress that the Secretary of State should consider declaring certain Canadian diplomatic personnel persona non grata until air quality in affected U.S. communities remains healthy for 90 consecutive days due to the cessation of Canadian smoke. Exceptions are provided for humanitarian aid, wildfire prevention/suppression, and diplomatic activities consistent with international obligations, and sanctions can be waived under specific national security or humanitarian conditions. Sanctions can be terminated if the President certifies that no material transboundary smoke event from Canada has occurred for 90 days and that Canada has implemented a credible, funded plan for wildfire prevention, mitigation, and timely information sharing, and has cooperated with U.S. authorities. If these conditions are not met or if new events occur after termination, sanctions would be reimposed.