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Biden signs historic $369 billion U.S. energy and climate legislation

August 17, 2022

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U.S. President Joe Biden on Aug. 16 signed the Inflation Reduction Act, a comprehensive energy and climate law that allocates nearly $370 billion in federal spending to decarbonization efforts over the next decade.

"This bill is the biggest step forward on climate ever … and it's going to allow us to boldly take additional steps toward meeting all of my climate goals," Biden said during a bill-signing ceremony at the White House.

The law's passage represents an abrupt turnaround from just a month ago, when Sen. Joe Manchin, D-W.Va., came under heavy criticism for his reported refusal to support a scaled-back version of House Democrats' now-defunct Build Back Better Act.

Manchin at the time pointed to a 9.1% year-over-year jump in U.S. inflation data, calling for a wait-and-see approach based on the next monthly inflation print.

Observers in Washington, D.C., were caught off guard when Manchin on July 27 announced a budget reconciliation deal with U.S. Senate Majority Leader Chuck Schumer, D-N.Y., that preserved most of the energy- and climate-related provisions in the Build Back Better Act.

The law will also expand healthcare benefits and is projected to reduce the U.S. budget deficit by about $300 billion in its first nine years.

[Zack Hale]

More: Biden signs historic climate bill, teeing up surge in US clean energy spending

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