Padilla Statement on the Historic Inflation Reduction Act

WASHINGTON, D.C. — U.S. Senator Alex Padilla (D-Calif.), member of the Senate Budget and Environment and Public Works Committees, released the following statement following the announcement of the Inflation Reduction Act of 2022, legislation that is expected to advance through the Senate’s budget reconciliation process next week:

“Democrats are moving forward on a historic agreement to lower costs for working families and take bold action to combat the climate crisis. The Inflation Reduction Act will deliver the single largest climate investment in history, dramatically reducing emissions all while bringing down energy costs for consumers. We are also lowering the costs of prescription drugs and health care, as millions of Americans struggle to afford the medicine and care they need. And it will not only be fully paid for by making wealthy corporations pay their fair share in taxes, it will also reduce the deficit overall. This is transformative legislation to fight inflation and lower costs for Californians.”

The Inflation Reduction Act of 2022 will invest approximately $369 billion over the next ten years in energy security and climate change programs to reduce carbon emissions by roughly 40 percent by 2030. The legislation will fight inflation by allowing Medicare to negotiate for prescription drug prices, extending the expanded Affordable Care Act program, and requiring the largest corporations and wealthiest Americans to pay their fair share in taxes. There are no new taxes in this bill on families making $400,000 or less and no new taxes on small businesses.

Full legislative text of the Inflation Reduction Act of 2022 is available here.

A one-page summary of the bill is available here, as well as summaries of the Climate ActionPrescription Drugs and Corporate Tax provisions.