Senate Passes Sen. Kelly-Shaped Inflation Reduction Act to Lower Health Care and Energy Costs for Arizonans
Includes Kelly’s plan to lower prescription drug costs and a Kelly-negotiated $4 billion provision to tackle western drought
Will tackle climate change that is fueling drought and wildfire by boosting renewable energy production
In keeping with his commitment to lowering costs for families and strengthening Arizona’s economy, today, Arizona Senator Mark Kelly voted to pass the Inflation Reduction Act, landmark legislation which includes his plan to lower prescription drug costs for millions of seniors, funding negotiated by Kelly to combat western drought, as well as provisions to tackle climate change and boost American energy independence.
The Kelly-shaped Inflation Reduction Act will close corporate tax loopholes, reduce the federal deficit, and will not raise taxes on middle class Arizonans and small businesses.
“When I meet with Arizonans and small businesses across our state, the top concern I hear about is rising costs,” said Senator Mark Kelly. “The Inflation Reduction Act includes our plan to lower prescription drug costs for seniors, has resources we negotiated to combat the impacts of drought, and tackles climate change that is making wildfires and heat in our state more severe by boosting renewable energy manufacturing and production. The Inflation Reduction Act shows we can accomplish those goals without raising taxes on middle class Arizonans and small businesses, who will keep more of their hard-earned money in their pockets.”
“We are grateful for Senator Kelly’s leadership and commitment to including his plan to lower prescription drug costs for Arizona’s seniors in this final legislation. This bill will make a huge difference in the lives of so many older Americans and Arizonans who for too long have had to choose between their life-saving medication or paying their bills. We look forward to seeing this bill signed into law,” said Dora Vasquez, Executive Director of the Arizona Alliance for Retired Americans.
“I want to thank Senator Kelly for securing $4 billion in the Inflation Reduction Act to help us combat drought in Arizona and the Colorado River basin. This investment is the latest example of his continued leadership and commitment to securing Arizona’s water future. Our water resources are crucial to ensuring that our communities, small businesses, and local economies continue to thrive. We are grateful to have him as a partner in this effort,” said Cheryl Lombard, President and CEO of Valley Partnership.
“Since AARP’s founding, we have fought for older adults to have access to affordable health care – including prescription drugs. And we have been working for nearly two decades to allow Medicare to negotiate the price it pays for medications. Thanks to today’s historic vote in the Senate, millions of Americans 50+ are one step closer to real relief from out-of-control prescription drug prices. Thank you, Senator Mark Kelly,” said Dana Marie Kennedy, State Director for AARP Arizona.
“We are grateful for Senator Kelly’s leadership in securing $4 billion to combat drought in the Inflation Reduction Act. This investment will help Tucsonans and many communities across the west protect our precious water resources and ensure we are more climate resilient,” said Tucson Mayor Regina Romero.
“The Inflation Reduction Act will lower prescription drug costs for seniors and families across Phoenix, boost our efforts to tackle drought and create more clean energy jobs. We’re thankful for Senator Kelly’s leadership on this legislation that will lower costs for families and help us grow our economy,” said Phoenix Mayor Kate Gallego.
“Thank you, Senator Mark Kelly, for your leadership on climate resilience and for helping to secure $4 billion to tackle drought in Arizona and the Southwest. We appreciate your partnership,” said Dan Stellar, State Director for the Nature Conservancy in Arizona.
See details on the Kelly-shaped Inflation Reduction Act below:
Lowers Prescription Drug Prices and Health Care Costs
Last year, Kelly negotiated a plan to lower prescription drug costs for millions of seniors across the country. In addition to empowering Medicare to begin negotiating directly for the price of the most expensive prescription drugs, this bill will also:
- Cap the cost of insulin at $35 a month for Medicare beneficiaries.
- Cap Medicare beneficiaries’ out-of-pocket drug costs at $2,000 per year, with the option to break that amount into affordable monthly payments throughout the year.
- Lower health care premiums for hundreds of thousands of Arizonans who get their health care through the federal exchange.
- Expand premium and co-pay assistance on prescription drugs for low-income individuals, eliminating the partial subsidy status and giving more seniors complete low-income subsidies under Medicare Part D.
- Stabilize Part D premiums for seniors on Medicare by holding annual premium growth to existing levels so that insurers and manufacturers can’t pass their new financial responsibilities on to seniors.
Combats Western Drought and Wildfires
The Inflation Reduction Act builds on Kelly’s work to secure Arizona’s water future, and support farmers and communities impacted by climate change. The bill includes:
- Thanks to Kelly’s work in negotiating and securing this agreement, the bill will provide $4 billion in funding for the Bureau of Reclamation to combat drought in the western states.
- $5 billion to protect communities from wildfires while combating climate change and supporting the workforce through climate-smart forestry. The bill also invests in forest health projects and equips firefighters and rural communities to be more resilient to wildfires.
- Over $20 billion to give farmers and ranchers the tools they need to address the climate crisis. These funds would help farmers and ranchers implement and expand conservation practices that reduce greenhouse gasses like methane.
Tackles Climate Change and Boosts American Energy Security and Independence
As Arizona faces rising temperatures, severe drought, and more intense wildfires, this bill tackles climate change by boosting renewable energy and reducing emissions. This bill will strengthen our energy security by boosting renewable energy production and creating great-paying jobs with:
- Requirements for three offshore oil and gas lease sales by the end of 2023, boosting American energy production in the short term to lower gas prices and reduce reliance on foreign countries. This builds on Kelly’s work to expand domestic oil production.
- $10 billion investment tax credit to build clean technology manufacturing facilities, like facilities that make solar panels and wind turbines.
- Incentives to accelerate U.S. manufacturing of solar panels, wind turbines, batteries, and critical minerals processing, estimated to invest $30 billion.
- Tax credits and grants to accelerate the transition to renewable energy.
- $500 million in the Defense Production Act for heat pumps and critical minerals processing.
- $800 million to help cut through red tape and allow critical mineral projects, transportation infrastructure, and clean energy projects to move more quickly through the federal permitting process.
- $2 billion for National Labs to accelerate breakthrough energy research, including microelectronics research, as championed by Kelly’s bipartisan Micro Act of 2022.
- Thanks to the bill’s investments in clean energy tax credits and clean energy manufacturing incentives, up to 1.5 million new clean energy jobs could be created by 2030 in the construction, service, and manufacturing industries.
Lowers Energy Costs
Kelly has maintained a focus on cutting energy costs for hardworking families both at the gas pump and on electricity bills. This bill continues Kelly’s efforts to help Arizonans tackle these challenges and provides a range of incentives that make it more affordable for consumers to lower costs by making their homes more energy efficient. The bill will provide:
- $9 billion in consumer home energy rebate programs, focused on low-income consumers, to electrify home appliances and for energy-efficient retrofits.
- $14 billion to lower costs for families and support good-paying clean energy jobs in rural communities. This includes support for rural communities, farmers, and small business owners to invest in renewable energy and be more energy efficient.
- 10 years of consumer tax credits to make homes energy efficient and run on clean energy, making heat pumps, rooftop solar, electric HVAC, and water heaters more affordable.
- $1 billion grant program to make affordable housing more energy efficient.
Fights Inflation and Closes Corporate Tax Loopholes
Every year, honest and hardworking Arizona families pay their taxes while the wealthiest Americans and big, profitable corporations avoid paying the taxes they owe to the federal government. The Inflation Reduction Act will close corporate tax loopholes for the most profitable companies, reduce the federal deficit, and most importantly will not raise taxes on middle class Arizonans and small businesses. The bill will:
- Impose a one percent excise tax on corporate stock buybacks.
- Reduces the federal deficit.
- Improve tax compliance to stop the wealthiest from avoiding paying their fair share.