White House signs Inflation Reduction Act of 2022

US President Joe Biden signed the $750bn Inflation Reduction Act of 2022 into law on Aug 16. The legislation includes measures to combat climate change and expand health care coverage.

In the coming weeks, Biden will travel across the country to make the case for how the legislation will help Americans, the White House said. Biden will also host an event to celebrate the legislation’s enactment on September 6. “This historic legislation will lower the cost of energy, prescription drugs and other health care for American families, combat the climate crisis, reduce the deficit, and make large corporations pay their fair share of taxes,” the White House said.

The White House claims the legislation will reduce the government’s budget deficit by about $300 billion over the next decade.

The bill represents the largest climate investment in U.S. history, investing about $370 billion in low-carbon energy and combating climate change. It would help the United States cut greenhouse gas emissions by 40 percent from 2005 levels by 2030. In addition, the government will spend $64 billion to extend federal health insurance subsidies that allow seniors on Medicare to negotiate prescription drug prices.

Will legislation help Democrats in the midterms?

“With this bill, the American people gain and the special interests lose.” “There was a time when people wondered if this would ever happen, but we’re in the midst of a bumper season,” Mr. Biden said at the White House event.

Late last year, negotiations on Rebuilding a Better Future collapsed in the Senate, raising questions about the Democrats’ ability to secure a legislative victory. A substantially slimmed down version, renamed the Lower Inflation Act, finally won approval from Senate Democrats, narrowly passing the Senate 51-50 vote.

Economic sentiment has improved over the past month as the consumer price index has fallen. The National Federation of Independent Business said last week that its small business optimism index rose 0.4 to 89.9 in July, the first monthly increase since December, but still well below the 48-year average of 98. Still, about 37% of owners report that inflation is their biggest problem.

Post time: Aug-17-2022