Inflation Reduction Act signed into law

The Inflation Reduction Act was signed into law on August 16, 2022, representing a major legislative accomplishment aimed at addressing key aspects of the U.S. economy, healthcare, and climate policy. The act was championed by congressional Democrats and President Joe Biden, who described it as a landmark package designed to reduce inflationary pressures over time by lowering federal deficits, investing in clean energy, and making healthcare more affordable. It followed extensive negotiations in Congress and built on earlier budget and reconciliation efforts. The legislation includes several core components. It authorises significant investments in clean energy and climate-related programs, with incentives for renewable energy production, energy efficiency, and clean technology deployment. It also strengthens the Internal Revenue Service’s (IRS) enforcement capabilities to improve tax compliance and reduce the deficit. In healthcare, the act permits Medicare to negotiate prices for certain prescription drugs and caps out-of-pocket costs for seniors, while extending subsidies for Affordable Care Act marketplace coverage. Supporters argue that these measures will help lower costs for families, spur economic growth, and contribute to long-term price stability. Critics raised concerns about tax increases and government spending. As a comprehensive economic package, the Inflation Reduction Act is considered one of the most significant domestic legislative achievements in recent U.S. history.