Your Evening Briefing: Biden Signs Historic Climate and Energy Law

Joe Biden on Tuesday signed what Democrats have named the “Inflation Reduction Act,” a $437 billion behemoth of healthcare, energy and climate initiatives that’s actually just a smaller version of the president’s “Build Back Better” plan, the centerpiece of his legislative agenda. Though having already managed a massive pandemic rescue package, an infrastructure bill aimed at remaking America’s crumbling roads and bridges and an incentive program to turbocharge critical chipmakers, Biden’s new bill is arguably an even bigger deal: it’s the most significant US climate legislation ever, targeting four billion tons of emissions with tax breaks for electric vehicles as well as solar and wind. The sweeping legislation is also expected to reduce the deficit by raising taxes on corporations (that saw them slashed by Republicans and the Trump administration) while enabling Medicare to negotiate lower drug prices. “This is a historic moment,” Biden proclaimed at the signing ceremony. “Democrats sided with the American people and every single Republican in Congress sided with the special interests.” With midterm elections looming and Republicans aiming to retake some or all of Congress, Biden and his party are betting on their legislative successes (as well as falling gas prices) to help overcome any damage to their prospects posed by high inflation.

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