Two years ago this week, Joe Biden signed the Inflation Reduction Act (IRA) into law in an effort to combat rising costs by investing in clean energy and sustainable infrastructure. The bill was considered by many to be the most substantial piece of climate legislation in American history, but two years down the line, the bill has impacted more than just clean energy efforts. Here are some ways the Inflation Reduction Act has affected American citizens since its passing:
Lowered Healthcare Costs for Millions of Americans
One piece of the IRA proposed a $2,000 yearly cap on out-of-pocket pharmaceutical expenses for Medicare beneficiaries, benefitting over 1 million senior citizens. The bill additionally capped monthly insulin costs for Medicare beneficiaries at $35, increasing affordability for the life-saving medication. But Medicare beneficiaries are not the only Americans to see lower healthcare costs, as the bill also extended marketplace subsidies for the Affordable Care Act through 2025, lowering costs for 13 million ACA enrollees.
Created Good-Paying Jobs for Americans Workers
Manufacturing has seen a significant boom following the passage of the IRA, due to the bill’s focus on investing in clean energy manufacturing. By the end of its first year, the IRA had been responsible for the creation of over 313,000 new high-paying manufacturing jobs. This, along with other bills passed following the pandemic, has led to the highest rate of manufacturing growth in America since the 1970’s. With the investments and tax credits for renewable energy manufacturers provided by the IRA, the bill could create as many as 9 million clean energy jobs over the next decade.
Lowered Inflation
Just as its name suggests, the IRA has targeted inflation via the aforementioned cap on pharmaceutical expenses and cracking down on tax loopholes often used by big corporations and Wall Street executives to avoid paying their fair share of taxes. This has resulted in inflation remaining below 4% for over a year, recently dropping below 3% for the first time in over three years.
The Future of the IRA
Despite the successes of the Inflation Reduction Act, its future remains in jeopardy, as Republicans have attempted over 40 times to repeal the law.
However, as its impact is being recognized across America, earlier this month a delegation of House Republicans sent a letter to House Speaker Mike Johnson (R-La.) urging that the IRA not be fully repealed if Republicans retain control of the House. “Energy tax credits have spurred innovation, incentivized investment, and created good jobs in many parts of the country — including many districts represented by members of our conference,” the letter said.
Despite this, the Heritage Foundation’s Project 2025 plan proposes rolling back tax credits for clean energy manufacturers and increasing greenhouse gas emissions. This would threaten the millions of clean energy jobs expected to be built in the next decade, and could threaten the reversed inflation that has come about since the bill’s passing.
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