Today, Congressman Salud Carbajal voted to send the Inflation Reduction Act of 2022, a landmark package to lower health care and energy costs for Central Coast families while tackling climate change and reducing the budget deficit, to President Joe Biden's desk to become law.
"The Inflation Reduction Act is a landmark bill that meets the greatest challenges that we are facing today--from rising energy prices and health care costs to the worsening damage of the climate crisis," said Congressman Carbajal. "This new law will deliver key wins for the Central Coast in the form of lower prices, less pollution, and more jobs. I'm proud of my work through this entire Congress to bring these key wins to the finish line, and I look forward to working with Central Coast communities to implement the wide range of benefits that will come from this capstone achievement of our Democratic majority in Congress."
The budget package includes multiple provisions that will provide relief on rising costs that Carbajal pushed for through his Inflation Action Plan that he crafted with the New Democrat Coalition. Their Inflation Action Plan called for actions on prescription drug pricing reforms and investments in clean energy.
Among the most important provisions of the Inflation Reduction Act are those that:
Enable Medicare to negotiate lower prescription drug prices on behalf of millions of older Americans and cap out-of-pocket health costs for seniors at $2,000 per year
Reduce U.S. carbon emissions by an estimated 40% by 2030 through investments in American clean energy production and incentives to help American families adopt clean energy technologies
Promote American energy security and reliability by investing in U.S. manufacturing of clean energy technologies, including solar, wind, and battery
Lower health care premiums for millions of Americans that use Affordable Care Act (ACA) marketplace plans
Invest more than $25 billion to help protect California communities and agricultural industry against the impact of drought, wildfire, and other effects of the climate crisis
Reduce the U.S. budget deficit by $300 billion while covering the costs of these investments and not raising taxes on any family making less than $400,000 a year by closing tax loopholes that allow large corporations to avoid paying federal income tax
The Inflation Reduction Act provides a range of incentives to consumers to relieve the high costs of energy and decrease utility bills, including direct consumer incentives to buy energy efficient and electric appliances, vehicles, and HVAC systems.
The bill includes a consumer home energy rebate program to electrify home appliances and promote energy efficient retrofits; consumer tax credits to install rooftop solar, electric HVAC, heat pumps, and other clean energy technologies; and consumer tax credits for middle class Americans to buy new or used clean energy vehicles.