Speaking at the Brookings Institution, Lael Brainard expressed confidence in the durability of the Inflation Reduction Act (IRA). The plan, which is crucial to the United States’ energy future, aims to boost renewable energies and electric vehicles. Brainard, White House economic advisor, reaffirmed its application, regardless of the forthcoming electoral results.
Donald Trump’s threats
Donald Trump, campaigning for a new term, has promised to overhaul the IRA if he wins the next US presidential election. He also plans to weaken the energy measures introduced by Biden. However, Brainard points out that the integration of the IRA into the tax code complicates any attempt at rapid change.
Legislative amendment process
Modifying the IRA would require a detailed revision of the tax code. This is a lengthy process, requiring public consultation. However, Brainard insists on the complexity of the regulations, which protects the plan from impulsive changes.
Growing support despite initial opposition
Initially, the IRA faced opposition from many Republican legislators. However, the investments made thanks to this plan have begun to bear fruit in their districts. Now, many Republicans applaud the local economic benefits brought by the IRA, as Lael Brainard points out:
“Although many Republican members objected.” Adding: “They now loudly applaud the investments made in their regions.”
Impact and popular support
The IRA has already benefited 100,000 Americans through tax credits for the purchase of electric vehicles, diverting $370 billion to clean energy. Brainard highlighted the strong support of the business community and investors for these initiatives. These groups would vigorously oppose any attempt to dismantle the measures.
White House economic advisor Lael Brainard remains optimistic about the future of the Inflation Reduction Act. It underscores the plan’s deep-rootedness in U.S. law and the U.S. economy, making its revocation or substantial modification unlikely.
