One Year Later: Democrats’ Inflation Reduction Act is Delivering for Texas
It’s been a year since the landmark Inflation Reduction Act became law. Despite unified opposition from the entire Texas Republican Congressional Delegation and the ultra-rich lobbyists and corporate interests that fund their political campaigns, President Biden, Vice President Harris, and Democratic leadership in Congress have kept their promises to bring new jobs to Texas, lower prescription drug costs for millions of Texas’ seniors, tackle the climate crisis, and lower home energy costs.
The law has already driven significant investment in U.S. manufacturing, according to “Letters from an American.” (1) The CEO of US Steel recently said the law should be renamed the “Manufacturing Renaissance Act,” as manufacturers return previously offshored production to the U.S. That same shift has brought supply chains back to the US.
These changes have meant new, well-paid manufacturing jobs in historically disadvantaged communities, many of which, ironically, that have been concentrated in Republican-dominated states, according to “Letter.”
Congressman Joaquin Castro of San Antonio issued the following statement:
“Last August, as San Antonio and the country worked to rebuild from the pandemic, I was proud to join Texas Democrats to vote for this historic investment in good jobs, affordable health care, and a better future. One year later, the Inflation Reduction Act is helping more Texans earn a living wage and make ends meet.
“In my district, 54,000 folks signed up for a Marketplace health care plan this year with the help of new premium subsidies that save them nearly $600 annually, and the insulin price cap is helping 2,600 of my senior constituents save an average of $420 a year on the care they need to stay alive. The Inflation Reduction Act means more money in the pockets of working families to keep the air conditioning on, put food on the table, buy new school supplies, and so much more.
“Texans are humble, hard-working people who do their jobs and don’t ask a lot from the government — and the Inflation Reduction Act is changing a lot of their lives.”
The IRA “brings the US significantly closer to meeting its 2030 climate target [of cutting greenhouse gas emissions to 50–52% below 2005 levels], taking expected emissions from 25–31% below 2005 levels down to 33–40% below,” according to a recent article in Science (1).
Our one-year-old law is expected to raise $738 billion by making the very wealthy and corporations pay their fair share, and by bringing tax cheats to account. No more trickle down or supply-side voodoo economics! The IRS is being strengthened to help it crack down on cheaters (1).
That revenue, plus about $891 billion from other sources, enabled the law to make the largest investment ever in addressing climate change, while still bringing down the federal government’s annual deficit (1).
Here’s how the Inflation Reduction Act is delivering for Texans:
Cutting costs for 4.4 million seniors and other Medicare beneficiaries on prescription drugs, thanks to caps on out-of-pocket prescription drug and insulin costs, free vaccines, inflation rebates, and drug price negotiation program
Investing $66.5 billion in large-scale clean power generation and storage, expanding clean-energy job opportunities
Rebating $690 million for home energy expenses to help cut Texans’ energy costs
Driving manufacture of technologies for the future, thereby supporting local economies and strengthening supply chains
Providing tax credits to small business to support energy efficiency improvements that deliver lower utility bills
Slashing costs and roadblocks to purchasing electric vehicles, with upfront discounts for new and used EVs
Cutting pollution significantly, not only avoiding climate impacts from extreme weather, but also improving local air quality
Supporting climate-smart agriculture practices, helping Texas’ 247,000 farms lead on climate solutions and rewarding their stewardship
Upgrading affordable housing, helping thousands of Texans boost resilience in the face of intensifying extreme weather
While Republican presidential candidates took shots at the IRA on its anniversary — former South Carolina governor Nikki Haley called it “a communist manifesto” — Democrats have pointed out that Republicans have been eager to take credit for IRA investments in their districts without mentioning either that they voted against the IRA or that they are still trying to repeal it (1, 2).
On the other hand, former President Barrack Obama celebrated the anniversary by saying, “This is a BFD!” To which President Biden replied, “Thanks, Obama!” (1).
Thanks to the Texas Democratic Party for sharing the Texas-focused info.