After months of Democratic talks, President Biden will sign climate and health legislation at the White House on Tuesday.
The president will tour the nation in the coming weeks, according to the White House, to explain how the Inflation Reduction Act would benefit Americans.
On September 6, he will also organise a celebration of the bill’s passage.
The White House stated in its announcement of the signing on Tuesday that “this historic bill will lower the cost of energy, prescription drugs, and other health care for American families, combat the climate crisis, reduce the deficit, and make the largest corporations pay their fair share of taxes.”
Last week, when Democratic Sen. Joe Manchin and Senate Majority Leader Chuck Schumer declared they had finally reached an agreement, the measure was approved by the House and Senate on a party-line vote.
The policy would spend over $400 billion on energy and environmental initiatives with the goal of lowering carbon emissions by 40% by 2030.
Seniors’ yearly out-of-pocket medication costs would be capped at $2,000, and Medicare will be able to bargain with pharmaceutical companies over prescription drug pricing.
The proposal also provides the IRS with $80 billion in money, enabling the agency to hire thousands more workers to audit taxpayers.
Uncertainty exists around how much the law will really accomplish to live up to its nickname.
The effect on inflation this year will be “negligible,” according to the Congressional Budget Office, before helping to cut inflation in following years, according to a model from Penn Wharton.
However, the White House cites a letter supporting the legislation and claiming it would “put downward pressure on inflation by decreasing the government’s budget deficit by an estimated $300 billion over the next decade.”
This statement was signed by more than 120 experts.
Democrats are hopeful that the legislation’s success will improve their chances of winning the next midterm elections.