FOR IMMEDIATE RELEASE
August 8, 2022
Contact: Juan Ramiro Sarmiento
(785) 760-6567 | JuanRamiro.Sarmiento@younginvincibles.org
Senate Strikes Landmark Deal to Advance Inflation Reduction Act
$369 Billion Climate, Health Care, Tax Package Moves to US House
(Washington, DC) – Yesterday, the US Senate, utilizing the reconciliation process, passed the Inflation Reduction Act (IRA) of 2022, after a marathon of procedural votes. The economic package required all 50 Democratic senators and Vice President Kamala Harris’ tie-breaking vote to overcome staunch Republican opposition.
On Friday, Senate Democrats reached a consensus on the domestic policy package with climate, tax, and health care provisions previously considered out of reach after the collapse of the Build Back Better Act earlier this year.
Last week, elements of President Biden’s domestic agenda were resurrected in a surprise agreement between Senate Majority Leader Chuck Schumer (D-NY) and Senator Joe Manchin III (D-WV). On Friday, the last holdout, Senator Kristin Sinema (D-AZ), agreed to back the legislation after successfully striking a $14 billion tax increase on wealthy individuals in the finance sector, a structural change in corporate taxes, and securing drought funds for Arizona.
The Inflation Reduction Act of 2022, represents the largest investment in climate action from the federal government and the most significant expansion of federal health care policy since the Affordable Care Act. The package includes key domestic policy provisions:
- Allows Medicare to negotiate drug prices
- Caps out-of-pocket prescription drug costs for seniors
- Prevents higher health care costs
- Cracks down on pharmaceutical industry
- Climate Resilience Investments for low-income communities
- First national green bank
- Cuts carbon pollution and lowers energy costs and creates American jobs
- Invests in communities that suffer the most from environmental and health
- Cuts inflation and drives down the deficit
Strong unemployment figures tamped down fears of the United States entering a recession. Still, rising inflation and increasing costs for everyday goods continue to strain Americans and their ability to make ends meet.
In response, Mervyn Jones, Director of External Affairs for Young Invincibles issued the following response:
“We commend the US Senate for their necessary action to address the rising cost of goods and services that continue to have an adverse impact on the financial security of young people across the country.
Savings measures included in the Inflation Reduction Act (IRA), like the extension of ACA subsidies to lower insurance premiums, will have a significant cost-saving impact on roughly 13 million Americans who access coverage through the health insurance marketplace. We are encouraged by the IRA’s provisions on prescription drug pricing for Medicare. We are, however, disheartened by the lack of action addressing the Medicaid coverage gap as well as the exclusion of a $35 insulin price cap for patients with private insurance.
We applaud the urgent climate change investments in the IRA, particularly the targeted $60 billion investment to support low-income communities confront the disproportionate impacts of pollution and climate change. While the package is significantly smaller than the $2.2 trillion Build Back Better Act, the climate action in the IRA amounts to the largest single federal investment to confront climate change. This landmark step would not have been possible without the tireless efforts of young people across the country demanding congressional action.
While we recognize the significance of this moment – major legislative action to mitigate rising inflation, we must also recognize these efforts are a downpayment on the long fight ahead to address the grueling financial landscape confronting millions of young adults who came of age during the Great Recession of 2008, endured an inequitable recovery, only to contend with the fallout of a global pandemic.
YI remains unflinching in our commitment to vigorously advocate for young people’s financial security, health, and voice within our political system.”
Young Invincibles (YI) is a national advocacy and policy nonprofit organization focused on amplifying the voice of young people in the political process at the local, state, and federal levels. YI focuses on issues impacting young adults ages 18 to 34 in higher education, health care, economic security, and civic engagement. Our offices include Washington, D.C., California, Colorado, Illinois, New York, and Texas. For more information, please contact Juan Ramiro Sarmiento at (785) 760-6567 or firstname.lastname@example.org