FACT SHEET: The Inflation Reduction Act Supports Workers and Families
When President Biden signed the Inflation Reduction Act into law, he reaffirmed his commitment to creating an economy centered on fairness, opportunity, and the prosperity of working families. Recognized as one of the most pro-labor presidents in U.S. history, Biden continues to prioritize workers’ rights, union strength, and equitable growth. The legislation represents a landmark achievement in reducing everyday costs for Americans, generating well-paid employment opportunities, and promoting sustainable economic expansion built from the bottom up and the middle out.
At its core, the Inflation Reduction Act aims to make daily life more affordable. It reduces the cost of prescription drugs, health care, and household energy consumption while addressing the climate crisis with unmatched urgency. The law also implements a fairer fiscal approach, asking the nation’s wealthiest individuals and largest corporations to contribute their share without increasing taxes for anyone earning less than $400,000 annually. By doing so, it aligns fiscal responsibility with social equity, helping to lower the federal deficit and strengthen long-term economic stability.
Advancing Clean Energy and Job Creation
A cornerstone of the Act is its focus on accelerating the clean energy transition while generating high-quality, unionized employment. For the first time, tax incentives for renewable technologies — such as solar, wind, and hydrogen energy — are directly tied to labor standards that ensure workers receive prevailing wages and benefit from apprenticeship programs. These measures not only support fair pay but also encourage skill development and local workforce participation.
The legislation further enforces compliance by penalizing companies that fail to honor wage commitments, guaranteeing that workers receive compensation owed with interest. In addition, the “Make it in America” initiative within the Act prioritizes the use of domestically produced materials and equipment in clean energy projects, fortifying U.S. supply chains and reinforcing the national manufacturing base. Together, these provisions reflect an integrated approach that connects environmental progress with social and economic empowerment.
Ensuring a Fairer Tax System
Another defining element of the Inflation Reduction Act is its effort to modernize the tax system to reflect principles of fairness and accountability. By closing loopholes and pursuing enforcement against tax evasion, the law ensures that wealthy individuals and large corporations meet their fiscal responsibilities. A new 15 percent minimum tax on corporate profits prevents profitable enterprises from escaping taxation entirely, while a 1 percent surcharge on stock buybacks discourages speculative financial practices and motivates companies to reinvest in production and workforce development.
In addition, the law expands funding for taxpayer assistance, helping ordinary Americans access credits and benefits more efficiently. These reforms not only generate critical revenue to support climate action and family relief programs but also redefine the nation’s economic framework to reward labor over capital and integrity over exploitation.
Revitalizing American Manufacturing
President Biden’s broader vision for economic renewal emphasizes revitalizing American industry. The Inflation Reduction Act embodies this vision by promoting innovation, self-reliance, and job creation across multiple sectors. Strategic tax incentives encourage the domestic production of clean energy technologies such as batteries, solar panels, and offshore wind components. Additional incentives are offered to firms utilizing American steel and other materials in their projects, ensuring that the benefits of clean energy expansion circulate within the national economy.
The Act also includes targeted measures to stimulate employment in communities historically dependent on fossil fuel extraction and processing. By supporting clean energy projects in these regions, the law not only accelerates the energy transition but also delivers economic revitalization to the towns and workers that once powered America’s industrial era.
Reducing Health Care Costs for Families
One of the most immediate benefits of the Inflation Reduction Act is its impact on health care affordability. The legislation introduces a $35 monthly cap on insulin for Medicare beneficiaries and gradually establishes an annual cap on out-of-pocket prescription drug expenses. For the first time in history, Medicare gains the authority to negotiate prices for certain high-cost medications, a breakthrough reform aimed at protecting seniors from financial strain.
Moreover, the law extends premium subsidies under the Affordable Care Act, ensuring that millions of Americans, including union members and their families, continue to access affordable insurance coverage. These health care measures exemplify the Act’s overarching philosophy: empowering families, safeguarding public health, and advancing economic justice through comprehensive reform.
The Inflation Reduction Act represents more than a policy victory — it marks a structural shift toward an economy that values work, fairness, and sustainability. By combining fiscal discipline with social investment, the law strengthens the middle class, revitalizes manufacturing, and positions the United States as a global leader in clean energy innovation. President Biden’s vision, embodied in this legislation, charts a path toward inclusive growth that honors the contributions of American workers while ensuring that prosperity reaches every household and community.