US President Joe Biden signs monumental climate change bill: Highlights

The largest climate bill in American history, totalling $430 billion, was signed into law by US President Joe Biden on Tuesday. It is intended to reduce domestic greenhouse gas emissions as well as excessive inflation and the cost of prescription drugs. It's the first time the US passed legislation particularly aimed at reducing carbon emissions.
joe biden inflation act

US President Joe Biden signing the Inflation Reduction Act.

Photo : REUTERS
KEY HIGHLIGHTS
  • It's the first time the US passed law particularly for reducing its carbon emissions.
  • The act will allocate $386 billion for energy and climate change programmes over the decade.
New Delhi: Calling it the ‘biggest step forward on climate ever’, US President Joe Biden signed a bill to fight the climate crisis and lower healthcare costs making it into legislation, reported American media.
The Biden administration has decided to spend hundreds of billions of dollars to deal with climate change.
Inflation Reduction Act
The Inflation Reduction Act's passage was a significant victory for the Biden administration and the first time the US passed legislation particularly aimed at reducing carbon emissions.
Although the legislation itself might not make much of a difference, its name is a tribute to the continuous wave of rising inflation in the United States.
Investment
The act will allocate $386 billion for energy and climate change programmes over the decade, the majority of which are designed to hasten the switch to renewable energy sources. Additionally, it will increase coverage under government health care programmes and extend health insurance subsidies.
Allocation of funds
The legislation will allocate funds, tax breaks, and loans to support solar-panel technologies, consumer initiatives to increase home energy efficiency, emission-reducing machinery for coal- and gas-powered power plants, and air pollution controls for farms, ports, and low-income regions.
Divisive
To obtain an agreement on the Inflation Reduction Act, which received no Republican votes in either chamber, it took more than a year of discussions.
On a party-line vote, the House adopted the proposal on Friday, 220-207. Days before, Vice President Kamala Harris broke a 50-50 tie in the Senate to help the measure pass.
Hoping to boost approval ratings
Democrats are hopeful that the spate of victories would boost their chances of keeping control of Washington in the November midterm elections, as Biden's support rating is lagging. The 79-year-old president wants to improve his image among voters as he considers running for reelection and according to experts, this bill, especially lowering healthcare costs would improve the chances of the US President.
Republican objections
Republicans claim that the higher corporate taxes enacted by the measure will drive up prices and exacerbate the country's battle with its biggest inflation since 1981. Despite the fact that Democrats have dubbed the legislation the "Inflation Reduction Act," independent analysts predict that it won't even noticeably affect pricing.
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