After the US Senate already approved President Joe Biden’s climate bill, the House of Representatives also approved the plans on Friday. That report American media on Saturday. The so-called Inflation Reduction Act of 2022 is a political victory for Biden, who is struggling with falling popularity figures just before the November midterm elections and could use a triumph.
The vote in the House of Representatives was split along party lines: the 220 Democrats in the House voted in favor, 207 of the 211 Republicans voted against. “Today is truly a glorious day for us,” House Speaker Nancy Pelosi said after the vote. Republicans objected that the law is too expensive – especially at an uncertain economic time. The US is also struggling with high inflation rates.
The law provides for $433 billion (421 billion euros) in government spending. The largest part (369 billion dollars) of this will go to measures against climate change. Companies that want to limit methane emissions will be subsidized, energy companies that switch to sustainable production will receive financial support and ‘green banks’ will be set up to help citizens to purchase sustainable products, such as electric cars or solar panels. According to an independent think tank, these measures could lead to a 31-44 percent reduction in greenhouse gas emissions in the United States by 2030 than in 2005.
But the law also covers healthcare, in particular limiting healthcare costs for citizens. The government will be allowed to negotiate the price of medicines with pharmaceuticals from 2026. The maximum personal contribution to medicines for citizens will also be fixed in the social health insurance package: they pay a maximum of $2,000 per year for this. Tax revenues are increased to fund the expenditures in the law, according to Democrats mainly through corporate income taxes.
Also read: Democrats’ climate plans show it can be done: meaningful legislation in times of crippling polarization