House Speaker Nancy Pelosi poses with elected officials after signing the anti-inflation bill in Washington August 12, 2022. OLIVIER DOULIERY / AFP
By a narrow majority, House Democrats on Friday, Aug. 12, allowed the final adoption of Joe Biden’s massive climate and health investment plan after a similar vote in the Senate a year ago.
The text, which aims to put the country on track to meet its greenhouse gas reduction targets, will be signed by the US President next week.
“Today the American people won,” wrote Joe Biden on his Twitter account. With this law, “families will see lower prices on medicines, health care and energy costs. »
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This reform, welcomed by the majority of associations fighting climate change, will cost more than $430 billion, including $370 billion for the environment and $64 billion for health.
Reduce the public deficit
Dubbed the Inflation Reduction Act, the plan also plans to reduce the federal deficit with a new minimum tax of 15% on all companies with profits exceeding $1 billion.
“Today is a day to celebrate,” House Speaker Nancy Pelosi said shortly before the vote. This law will allow American families to “thrive and survive our planet. »
The Republican camp, on the other hand, accuses the text of generating unnecessary government spending and castigates the use of the American tax authorities to finance it. Former President Donald Trump called on all Republicans to speak out on his social network Truth Social.
Joe Biden, who came to power with huge reform projects, originally advocated an even bigger investment plan. But the elected Democrats have had to gradually adjust their ambitions downwards, in particular to please Senator Joe Manchin from the well-known coal-mining state of West Virginia. His support was essential to get on the Senate stage.
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“Source of Hope”
Despite everything, the text remains the largest investment that the USA has ever made for the climate. It must make it possible to reduce greenhouse gas emissions by 40% by 2030. Joe Biden’s goal is a reduction of at least 50% by that date, but other measures, particularly regulatory ones, could partially fill the gap, experts say.
“This law is a game changer and a source of hope,” said Johanna Chao Kreilick, President of the Union of Concerned Scientists. The measures taken will “encourage other countries to step up their commitments,” Dan Lashof, director of the World Resources Institute in the United States, said on Friday.
“By creating strong incentives to invest in solar and wind energy, [le texte] will dry up the market for coal power in the next decade, so to speak,” he summarized this week.
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Under this reform, an American will receive up to $7,500 in tax credits for purchasing an electric car. The installation of solar panels on the roof is covered for 30%. Investments are also planned for the development of carbon capture, fire resilience of forests and renovation of housing for the most modest households.
Also, billions of dollars in tax credits are being offered to the most polluting industries to help them make the energy transition – a move sharply criticized by the party’s left wing, which has nevertheless had to back the text.
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Cheaper drugs
The second part of this major investment plan aims in part to correct the huge inequalities in access to health care in the United States, particularly by lowering drug prices.
Medicare, a public health insurance scheme designed for people over 65, among others, will for the first time be able to negotiate the price of certain drugs directly with pharmaceutical companies, enabling them to achieve more competitive prices. In addition, by 2025, seniors will be guaranteed not to have to pay more than $2,000 a year for their medications.
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The bill also plans to expand the protections of the Affordable Care Act, the emblematic health plan better known as Obamacare, which included measures to ease access to health insurance through grants to help families pay for medical care help.
la/dax