Biden Celebrates Billions in Savings on Inflation Reduction Act’s 2nd Anniversary

On August 16, President Joe Biden celebrated the two-year anniversary of the Inflation Reduction Act (IRA), highlighting its significant impacts on lowering health costs, reducing the deficit, and making substantial climate investments. Biden described the IRA as an initiative that not only cuts energy expenses but also creates hundreds of thousands of jobs across the country.

Biden pointed out that Vice President Kamala Harris played a crucial role in the passage of this legislation by casting a tie-breaking vote, given that not a single Republican supported it. During a statement marking the anniversary, he emphasized the law’s accomplishments, stating, “Already, this law is lowering health care costs for millions of families, strengthening energy security, and creating more than 330,000 clean energy jobs according to outside groups.”

He also noted that the IRA has spurred $265 billion in clean energy and manufacturing investments from the private sector over the past two years, contributing to nearly $900 billion invested in America since the current administration took office.

Earlier in the week, Biden announced that negotiations with pharmaceutical companies, facilitated by the IRA, are projected to save Medicare $6 billion and beneficiaries $1.5 billion in the first year. Starting in January, annual prescription drug costs for Medicare recipients will be capped at $2,000, a significant change for many families.

In contrast, Biden criticized Republican efforts to repeal the IRA, claiming such actions would lead to increased prescription drug prices and job losses. He stated, “While Republicans in Congress try to repeal this law—which would increase prescription drug costs and take good-paying jobs away from their constituents—Vice President Harris and I will keep fighting to move our country forward by investing in America and giving families more breathing room.”

The White House recently released details outlining the benefits of the IRA. These include reduced Medicare drug prices, approximately $8.4 billion in tax credit savings for homeowners making energy upgrades, an average savings of $800 per year in health insurance premiums, and $900 billion in clean energy and manufacturing investments. The electric vehicle tax credit has also provided buyers with savings totaling around $1.5 billion thus far.

According to information from the Treasury Department, companies have announced a remarkable $265 billion in new clean energy investments across nearly every state in the country since the IRA was enacted. Data released on August 7 indicates that over 3.4 million Americans have benefited from the $8.4 billion in clean energy tax credits made available by the law.

The White House further pointed out that the IRA’s investments will empower the IRS to enhance enforcement against wealthy tax evaders, projecting an additional revenue collection of more than $400 billion over the next decade. This initiative has already seen tangible outcomes, with $1 billion in collections from approximately 1,500 “millionaire tax cheats.” Enforcement actions have been initiated against another 25,000 millionaires who have not filed tax returns since 2017.

Moreover, the benefits of IRA investments appear to be favoring underserved communities. The White House reported that 99% of high-poverty counties have received funding from the infrastructure law, CHIPS Act, or Inflation Reduction Act, while non-metro areas have received nearly double the per capita funding compared to their urban counterparts.

Biden’s remarks affirm the administration’s commitment to leveraging the IRA to address economic disparities and enhance energy security, all while fostering job creation through significant investment in clean energy initiatives.