Historic Action to Lower Prescription Drug Costs, Fight Climate Change and Reduce the Deficit

WASHINGTON, D.C. — Today, Rep. Pete Aguilar voted to pass the Inflation Reduction Act of 2022, historic legislation that will lower the price of prescription drugs for hard-working families, keep health insurance affordable for millions of Americans and make the largest investment in modern history to combat climate change.

“I have been fighting to lower the costs of prescription drugs by allowing Medicare to negotiate directly with drug companies since I was first elected,” Rep. Pete Aguilar said. “This commonsense legislation honors the pledge I made to Inland Empire families and seniors and provides meaningful relief to the residents in our community who have been struggling to pay for necessary medications. We’re also making the largest investment in climate change in American history, lowering our carbon emissions by 40 percent over the next eight years.”

The Inflation Reduction Act will allow Medicare to negotiate prescription drug prices and caps out-of-pocket costs for Medicare beneficiaries at $2,000, while extending Affordable Care Act (ACA) subsidies for three more years – ensuring lower health insurance premiums for millions of Americans.

The Inflation Reduction Act will invest $369 billion in clean energy tax credits to address the climate crisis and reduce carbon emissions by 40 percent by 2030. The bill provides ten years of consumer tax credits so families can lower energy costs, creates home energy rebate programs and invests $1 billion to make affordable housing units across the country more energy efficient.

The Inflation Reduction Act also contributes $300 billion towards paying down the national debt, which economists say will help cool inflation. The bill is paid for by closing tax loopholes to ensure tax fairness, increasing tax compliance for the wealthiest individuals, implementing an excise tax on stock buybacks and creating a 15 percent corporate minimum tax. The Inflation Reduction Act creates no new taxes on families making less than $400,000 per year or any small businesses.

This bill has been sent to President Joe Biden for his signature.

Rep. Aguilar serves as Vice Chair of the House Democratic Caucus and as a member of the House Committee on Appropriations, the Committee on House Administration and the Select Committee to Investigate the January 6th Attack on the US Capitol.

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