A $740 billion piece of legislation that includes historic investments in the development of renewable energy, a minimum tax on large corporations, and a historic requirement for Medicare to directly negotiate the prices of a subset of prescription drugs was given final passage by Democrats in the U.S. House on Friday without the help of a single Republican.
Even though the bill includes significant handouts to the fossil fuel industry in addition to a plethora of tax breaks and subsidies for green energy that could significantly reduce greenhouse gas emissions, Democratic supporters of the bill and outside organizations have hailed the Inflation Reduction Act (IRA) as the most important climate action measure ever passed by U.S. lawmakers.
The reconciliation bill was approved by the Senate on a party-line vote last weekend, and the final House vote on Friday was 220 to 207, with all Democrats voting in favor and every single member of the Republican caucus voting “no.”
After more than a year of discussions that were frequently derailed by Sens. Joe Manchin (D-W.Va.) and Kyrsten Sinema (D-Ariz.), who was successful in drastically curtailing their party’s agenda, the bill is anticipated to be signed into law by President Joe Biden as soon as Friday evening.
The IRA is “a game-changer and grounds for hope,” according to Johanna Chao Kreilick, head of the Union of Concerned Scientists, although certain clauses “risk boosting fossil fuel extraction and consumption.”
Despite the vocal objections of grassroots climate activists to the bill’s giveaways to the fossil fuel industry, including a clause requiring new oil and gas lease sales as a condition for wind and solar development, every member of the Congressional Progressive Caucus voted in favor of the legislation.
Rep. Pramila Jayapal (D-Wash.), chair of the Congressional Progressive Caucus, claimed at a press conference in advance of Friday’s vote that the IRA “marks the largest-ever federal investment in climate action, putting the United States back on track to cut carbon pollution by 40% by 2030.” However, given that this prediction depends on the efficacy of unproven carbon capture technology, some climate advocates have questioned this claim.
The IRA, according to House Speaker Nancy Pelosi (D-Calif.), moves toward “loosening the stranglehold” of corporate interests on Congress.
But in many ways, the law illustrates the influence that corporate America continues to have over the political process. In addition to the gifts Manchin obtained for Big Oil, Sinema helped the private equity sector win the last-minute repeal of tax rules intended to close the infamous carried interest loophole.
Republicans eliminated a provision that would have capped insulin copays for people with private insurance at $35 per month after the unelected Senate parliamentarian provided them with an opening to do so. Both a $2,000 yearly cap on beneficiaries’ prescription medication spending as well as an insulin payment cap for Medicare Part D subscribers remain in the measure.
Corporate lobbying organizations like the U.S. Chamber of Commerce actively campaigned against the IRA despite regressive late-stage amendments to the measure, focusing especially on killing its sections regarding medication prices and the 15% minimum tax on extremely profitable businesses.
The Inflation Reduction Act, which has received harsh criticism, “takes vital steps to promote clean energy, but entirely fails to reign in toxic, destructive fossil fuel exploitation,” according to Wenonah Hauter, executive director of Food and Water Watch.
