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Advancing Policy

The Inflation Reduction Act Turns Two! The Climate, Justice, and Jobs Achievements that Live in Our Brains Rent Free

Aug 8, 2024

The Biden-Harris administration’s Inflation Reduction Act (IRA), the world’s largest-ever investment in climate and clean energy, is turning two! The landmark legislation, which is helping jumpstart the clean energy transition and curb pollution, was passed by the administration and climate champions in Congress two years ago this week. Today, we’re looking back at the three most iconic achievements from the last two years of historic climate progress.

1. Saving everyday people money while cutting emissions 💰

The Biden-Harris administration’s landmark climate bill is making it easier for everyday people to save on energy costs and transition to clean energy in their homes, vehicles, schools and businesses. These programs help people save money and make their homes more comfortable, all while reducing harmful emissions from fossil-fuel-powered energy.

Energy efficient home upgrades

If saving money and making your home more environmentally-friendly sounds like a win-win, that’s because it is. You can lower your household’s energy bills by hundreds or thousands of dollars a year by installing appliances that use less energy or weatherizing your home. And, thanks to the Biden-Harris administration, you can save up to 30% on the upfront costs of installing energy efficient appliances such as induction stoves, insulation, heat pumps, and rooftop solar through tax credits. Find out what tax credits you are eligible for with Rewiring America’s Savings Calculator!

In 2023, programs under the IRA saved 3.4 million families a total of $8.4 billion on energy efficient home upgrades.

Electric vehicles

Say goodbye to toxic tailpipe emissions by making the switch to an electric vehicle! You could save up to $7,500 on qualified new electric vehicles, and up to $4,000 on qualified used electric vehicles.

Read more stories from people who have taken advantage of the opportunities provided by the Inflation Reduction Act and are saving money at lcv.org/stories/.

2. Investing in environmental justice 🌳

Through a series of initiatives and grant programs, the Inflation Reduction Act is driving historic investment in climate and clean energy, particularly in communities of color and those with low income, and we love to see it. The programs include:

  1. Justice40: Within days of taking office, President Biden launched the Justice40 Initiative, a commitment to ensure that 40% of overall benefits from investments in climate, clean energy, clean water, and affordable, sustainable housing go to communities that have historically experienced under-investment and high levels of pollution. The Biden-Harris administration has secured $600 billion for climate and clean energy projects in Justice40 communities over five years. This funding will help advance the clean energy future in these historically disadvantaged communities.
  2. EPA’s Community Change Grant program: This $2 billion program provides grant funding to support community organizations, municipalities, schools, and Tribes working to reduce pollution, increase community climate resilience, and create meaningful community engagement in places that are disproportionately harmed by climate change, legacy pollution, and historical disinvestment. So far, the program has awarded $325 million to 21 projects in 16 states. The projects funded include performing home weatherization upgrades to help low-income residents improve indoor air quality and lower their energy bills, creating greenspaces, and installing wastewater treatment systems in rural areas.
  3. EPA’s Greenhouse Gas Reduction Fund: The Greenhouse Gas Reduction Fund is a first-of-its-kind program to drive both public and private investment in climate and clean energy projects to ensure communities have access to funding to make these projects a reality. The program will fund tens of thousands of projects, such as energy efficient retrofits for homes and small businesses and clean transportation initiatives, that will result in cleaner air, lower energy bills, and more good jobs for communities nationwide. Projects funded by the program will also help reduce or avoid up to 40 million metric tons of carbon pollution each year for the next seven years.

3. Creating good jobs and strengthening communities 💪

From boosting economies through good-paying jobs, to funding sustainable agricultural practices, programs under the IRA are strengthening our communities and improving the quality of life for people nationwide.

Job creation

Since its passage, the IRA has created a total of almost 313,000 jobs across nearly every state, many of which do not require a four year degree. Check out this story of one clean energy employee who is able to do what he loves thanks to jobs created in his community due to investment from the IRA. And, see how IRA funding for offshore wind development is spurring job creation throughout New England.

Bonus! As part of the administration’s Investing in America Agenda, which includes the IRA, President Biden also launched the American Climate Corps, a training and jobs program that is putting 20,000 young people to work in good-paying climate and clean energy jobs nationwide. Learn more (or sign up)!

Greener community centers

Tax credits for energy efficient upgrades aren’t just for individuals; they are available to businesses, schools, and community and cultural centers as well. Watch how a mosque and neighboring church in East Lansing, Michigan inspired one another to go green and save money by installing solar arrays with the help of the IRA.

Climate smart agriculture

The IRA infused the U.S. Farm Bill with nearly $20 billion in additional funds for climate smart agriculture. That funding is helping farmers, like Cherie Jzar of North Carolina and Maggie Hanna of Colorado, address the impacts of climate change on their farms and continue to be able to feed their communities with nutritious, local products.

Illinois' Climate and Equitable Jobs Act and the Inflation Reduction Act

Illinois was bold in passing one of the most ambitious and equitable clean energy transition bills in the nation, the Climate and Equitable Jobs Act (CEJA). This state policy set Illinois up to take full advantage of the historic federal clean energy investments in the Biden-Harris administration’s Inflation Reduction Act. Now, Illinoisians are seeing the benefits.

Looking ahead

The last two years have brought incredible and historic progress on climate, thanks to the leadership of the Biden-Harris administration and their landmark Inflation Reduction Act. It hasn’t been easy; extreme MAGA Republicans in Congress have tried to tear down or roll back important and popular programs under the IRA at every turn. And we still have a long way to go. To keep the climate momentum going, we need lawmakers who will fight to keep this historic legislation in place. You can get involved by joining LCV and taking online actions to remind legislators that climate is a winning issue. Here’s to many more years of iconic IRA climate action!

Take Action Now

Skyline showing industrial smokestacks at dusk
Tell the U.S. Army Corps of Engineers: Reject Line 5 to Protect Water, Climate, and Treaty Rights

Line 5 is an aging fossil fuels pipeline run by Canadian oil conglomerate Enbridge Energy. For over ten years, Enbridge's operation of Line 5 has illegally trespassed on the Bad River Band reservation in Northern Wisconsin, violating the Tribe's sovereignty and threatening the waters of Lake Superior. Now, Enbridge is attempting an invasive project to expand Line 5. Enbridge needs a permit from the U.S. Army Corps of Engineers, which is holding a public comment period for its draft environmental assessment. Tell the Corps today: Line 5 threatens water, climate, and treaty rights.

Tell the Corps: Reject Line 5
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Tell Officials: Keep Fighting for Cleaner Cars and Trucks

The Biden-Harris administration has finalized strong rules to limit pollution from cars and trucks — and worked to pass and is implementing unprecedented clean transportation investments and tax incentives. At the same time, Big Oil's allies in Congress are working to undermine our progress. We must call on pro-environment officials to fight back against these fossil-fueled threats.

Tell Officials Now: Keep Fighting
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Tell Congress: Protect Farm Bill Funding for Climate-Smart Agriculture

Congress is negotiating the reauthorization of the Farm Bill, including funding for programs that help farmers cope with climate change and reduce their climate impacts. Opponents of the President’s climate agenda are trying to cut or redirect critical funding away from these programs. Tell your members of Congress now: protect the climate-smart agriculture investments in the Farm Bill that benefit our farmers, climate, public health, and economy.

Send a Message to Congress