Today, U.S. Congressman Donald Norcross (NJ-01) voted to pass the Inflation Reduction Act. This legislation will help lower costs for working people by reigning in health care and prescription drug costs, investing in American manufacturing to bolster the production of clean energy, and ensuring billion-dollar corporations pay their fair share in taxes. The savings achieved in these areas will also decrease the national debt by $300 billion over the next decade.

“The Inflation Reduction Act is a job creator first and foremost,” said Congressman Norcross. “Investing in clean energy by manufacturing solar panels, offshore wind components, and batteries domestically means our energy future is going to be made in America. I’m proud to report that my offshore wind incentives are included in this bill, which will help grow South Jersey’s offshore wind industry. That means good-paying jobs and reducing our dependence on oil and gas from places like Russia.

The Inflation Reduction Act includes an approximately $370 billion investment in climate change – by far the single biggest climate investment in U.S. history. The investment will reduce the nation’s greenhouse gas emissions by 40% by 2030.

“This bill will reduce prescription drug costs for our seniors by allowing Medicare to negotiate drug pricing,” continued Congressman Norcross. “It will lower health care costs and level the playing field for working people in New Jersey by making sure billion-dollar corporations pay their fair share in taxes, just like the rest of us.”

The Inflation Reduction Act will make life more affordable, including by:

• Capping Medicare out-of-pocket expenses at $2,000 annually. Today, there is no cap, and the average Medicare recipient spends over $5,400 on out-of-pocket costs a year.
• Allowing Medicare to negotiate lower drug prices, which would lower costs for beneficiaries and save the Centers for Medicare & Medicaid Services roughly $102 billion over a decade.
• Instituting Medicare insulin cap at $35 a month. Health Affairs found that 41% of people who use insulin are on Medicare, and 14% of them spend 40% of their remaining income after paying for food and housing on the life-saving medication.
• Preventing insurance premium price hikes by extending health care subsidies to Americans who would otherwise face increased costs. The subsidies were first included in the American Rescue Plan to help people stay insured during the COVID-19 pandemic and were set to expire this year.
• Lifting wages and creating opportunities for American workers by rewarding businesses that meet fair wages and registered apprenticeship standards. Registered apprenticeships are the nation’s best-performing jobs training program, equipping workers with the skills they need for family-sustaining careers.
• Incentivizing domestic energy production with production and investment incentives in renewable energy, accelerating our transition to a clean energy economy with a secure domestic energy supply, resilient grid, and stable prices. These include the Offshore Wind Manufacturing incentive championed by Congressman Norcross.
• Encouraging energy efficiency at home through consumer credits for installing energy-efficient windows and doors, upgrading electrical panels, and installing qualified goods such as Energy Star products.
• Accelerating the shift to electric vehicles (EV) through a credit of up to $7,500 for qualified new vehicles and $4,000 for used vehicles. According to Consumer Reports, the lifetime savings of owning an EV range from $6,000 to $10,000 compared to similar gas-powered models.