Congressman David Scott (GA-13), chairman of the House Agriculture Committee, today voted to pass H.R. 5376, the Inflation Reduction Act—landmark legislation to lower health care and energy costs for working families, reduce inflation and the national deficit, and provide historic investments to combat climate change. The bill was previously passed by the U.S. Senate (Sunday, August 7, 2022) and now heads to the President’s desk for his signature.
“In holding steadfast to our commitment to the American people by passing the Inflation Reduction Act, the Congress is taking necessary steps to support America’s working families. I am especially proud that this bill will finally empower Medicare to negotiate lower prescription drug prices and cap the cost of insulin,” stated Congressman David Scott. “Through the Inflation Reduction Act, we are paving the way for increased access to affordable healthcare, sustainable energy resources, and a cleaner environment—critical issues our country cannot delay action on any further.”
Empowering Medicare to Negotiate Drug Prices: Empowers Medicare to negotiate prices for the highest cost single-source drugs in Medicare, a policy that Democrats have been trying to enact for years. The provisions save more than $100 billion over 10 years. It allows Medicare to negotiate lower prices for about 100 drugs over the next decade: 10 high-cost drugs beginning in 2026, 15 additional drugs in both 2027 and 2028, and 20 more in 2029 and thereafter. The Secretary must negotiate a price that is no more than the 75 percent of the non-federal Average Manufacturer Price, a price that is used by the Department of Defense and others.
An Inflation Rebate for Seniors on Medicare: Under this bill, if drug companies raise prices in Medicare faster than the rate of inflation, they must pay rebates back to Medicare for the difference, beginning in October 2022.
New $2,000 Out-Of-Pocket Cap for Part D Drugs for Seniors on Medicare: Caps Part D out-of-pocket drug costs at $2,000 a year for seniors and individuals with disabilities on Medicare, starting in 2025.
Caps Insulin Costs at $35 A Month for Seniors and Individuals with Disabilities on Medicare: Caps Medicare beneficiaries’ insulin costs at $35 a month.
Lowers Premiums in ACA Marketplaces for 13 Million Americans: Extends enhanced ACA subsidies for three years, through 2025.
Includes Provisions to Lower Consumer Energy Costs:
Consumer Home Energy Rebate Programs: Provides $9 billion in consumer home energy rebate programs, focused on low-income consumers, to electrify home appliances and for energy efficient retrofits.
10 Years of Consumer Tax Credits to Make Homes Energy Efficient: Provides 10 years of consumer tax credits to make homes energy efficient and run on clean energy, making heat pumps, rooftop solar, electric HVAC, and water heaters more affordable.
Consumer Tax Credits to Buy Used or New Clean Vehicles: Provides a $4,000 consumer tax credit for lower/middle income individuals to buy used clean vehicles, and up to $7,000 tax credit to buy new clean vehicles.
$1 Billion Grant Program to Make Housing More Energy Efficient: $1 billion grant program to make affordable housing more energy efficient.
Methane Emissions Reduction Program: The Methane Emission Reduction Program will ensure consumers no longer pay for wasted energy.
Fights Inflation and Reduces Deficit:
Historic Investments to Fight Inflation and Lower The Deficit: Invests approximately $300 billion to fight inflation and lower the deficit.
No New Taxes on Working Families or Small Businesses: Mandates that no new taxes by levied on families making $400,000 or less or on small businesses.
Makes Corporations Pay Their Fair Share: Strengthens IRS enforcement, closest exploited tax loopholes, and implements a 15 percent corporate minimum tax for the 150 corporations making earning over $1 billion in profits that pay less than 15% in taxes.
Invests in American Energy Security and Domestic Manufacturing:
Production and Investment Tax Credits: Provides production and investment tax credits to accelerate U.S. manufacturing of electric vehicles, solar panels, wind turbines, batteries, and critical minerals processing, with an estimated total investment of $40 billion.
Defense Production Act: Provides $500 million in Defense Production Act funding to support heat pump manufacturing and critical minerals processing.
Domestic Manufacturing: Provides $2 billion for grants to retool existing auto manufacturing facilities to manufacture clean vehicles, ensuring that auto manufacturing jobs stay in the communities that depend on them.
Financing for Energy Infrastructure, Next Generation Technologies, and Tribal Energy Projects: Provides loans and loan guarantees for more than $300 billion in clean energy infrastructure, advanced technologies, and transmission projects in across the United States, including in historical energy producing communities and on Tribal lands.
Investing in Our National Laboratories: Provides $2 billion for National Labs to accelerate breakthrough energy research.
Includes Provisions to Decarbonize the Economy:
Tax Credits for Clean Sources of Electricity and Energy Storage: Provides tax credits for clean sources of electricity and energy storage and roughly $30 billion in targeted grant and loan programs for states and electric utilities to accelerate the transition to clean electricity.
Tax Credits and Grants for Clean Fuels and Clean Commercial Vehicles: Provides tax credits and grants for clean fuels and clean commercial vehicles to reduce emissions from all parts of the transportation sector.
Grants and Tax Credits to Reduce Emissions from Industrial Manufacturing: Provides grants and tax credits to reduce emissions from industrial and manufacturing processes, including almost $6 billion for a new Advanced Industrial Facilities Deployment Program to reduce emissions from energy intensive industrial and manufacturing facilities like chemical and cement plants.
Over $9 Billion for Federal Procurement of American-Made Clean Technologies: Provides over $9 billion for Federal procurement of American-made clean technologies to create a stable market for clean products, including $3 billion for the U.S. Postal Service to purchase zero-emissions vehicles.
$27 Billion Greenhouse Gas Reduction Fund: Provides $27 billion for nonprofit, state, and local climate finance institutions that support the rapid deployment of low- and zero- emission technologies to help communities reduce and avoid pollution, especially in disadvantaged communities.
Makes Investments in Communities and Environmental Justice:
Environmental and Climate Justice Block Grants: Provides Environmental and Climate Justice Block Grants, funded at $3 billion, that invest in community-led projects in disadvantaged communities and community capacity building centers to address disproportionate environmental and public health harms caused by pollution and climate change.
Neighborhood Access and Equity Grants: Provides Neighborhood Access and Equity Grants, funded at $3 billion, that support neighborhood equity, safety, and affordable transportation access with competitive grants to reconnect communities divided by existing infrastructure barriers, mitigate negative impacts of transportation facilities or construction projects on disadvantaged or underserved communities, and support equitable transportation planning and community engagement activities.
Grants to Reduce Air Pollution at Ports: Provides grants to reduce air pollution at ports, funded at $3 billion, that support the purchase and installation of zero-emission equipment and technology at ports.
$1 Billion for Clean Heavy-Duty Vehicles: Provide $1 billion for clean heavy-duty vehicles, like school and transit buses and garbage trucks.
Clean Energy Tax Credits: Many of the clean energy tax credits also include either a bonus or a set-aside structure to drive investments and economic development in disadvantaged communities.
Includes Support For Farmers, Forestland Owners, and Resilient Rural Communities:
Climate-Smart Agriculture Practices: Provides more than $20 billion to support climate-smart agriculture practices.
Grants to Support Healthy Forests: Provides $5 billion in grants to support healthy, fire resilient forests, forest conservation, and urban tree planting.
Tax Credits and Grants to Support the Domestic Production of Biofuels: Provides tax credits and grants to support the domestic production of biofuels, and to build the infrastructure needed for sustainable aviation fuel and other biofuels.
Grants to Conserve and Restore Coastal Habitats: Provides $2.6 billion to conserve and restore coastal habitats and protect communities that depend on those habitats.
Find the full fact sheet here.
Read the bill text here.