# Inflation Reduction Act

> The largest climate investment in U.S. history (~$369B), plus Medicare drug-price negotiation, an insulin price cap, and a 15% corporate minimum tax.

Joe Biden · Energy & Environment · Legislation · Aug 16, 2022
Official record: https://www.cnbc.com/2022/08/24/inflation-reduction-act-could-cut-climate-damages-by-1point9-trillion.html

## What happened

The largest climate investment in U.S. history (~$369B), plus Medicare drug-price negotiation, an insulin price cap, and a 15% corporate minimum tax.

## How it happened

Passed via reconciliation (VP Harris tie-break); signed August 16, 2022.

## Documented impact

- [positive / substantiated] Projected to cut emissions ~40% by 2030 and lower drug costs. — Analyses put the U.S. on track toward ~40% emissions cuts; it let Medicare negotiate drug prices and capped insulin at $35 for seniors.
- [negative / contested] Critics dispute its inflation and cost effects. — Opponents argued it would do little for near-term inflation and criticized the cost of energy subsidies.

## Sources

- [CNBC: IRA climate impact](https://www.cnbc.com/2022/08/24/inflation-reduction-act-could-cut-climate-damages-by-1point9-trillion.html)
- [Treasury: IRA](https://home.treasury.gov/news/featured-stories/the-inflation-reduction-act-pro-growth-climate-policy)

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Canonical: https://eo.alanwizemann.com/eo/biden/inflation-reduction-act