Center for American Progress

RELEASE: McCarthy’s Debt Ceiling Proposal Would Undo Benefits of Inflation Reduction Act
Press Release

RELEASE: McCarthy’s Debt Ceiling Proposal Would Undo Benefits of Inflation Reduction Act

Washington, D.C. — House Speaker Kevin McCarthy (R-CA) is trying to use the debt ceiling as leverage to gut the Biden administration’s climate law.

A new analysis from the Center for American Progress shows how this move would threaten hundreds of thousands of clean energy jobs, increase household energy costs, and block countless benefits to the nation’s economy. It would also halt progress in improving the nation’s workforce development, manufacturing capability, competitiveness, and public health.

The analysis highlights five benefits of the climate investments of the Inflation Reduction Act that McCarthy’s proposal would roll back. The Inflation Reduction Act:

  • Brings U.S. climate goals within reach
  • Spurs massive clean energy job creation, with 142,000 new jobs already created and at least 1.3 million jobs created by 2030
  • Saves households money on their energy and fuel bills and provide discounts for cleaner, cost-saving appliances
  • Accelerates American innovation and global competitiveness through major investments in clean manufacturing
  • Reduces pollution and delivers significant health benefits to Americans, especially those living in low-income communities

“McCarthy’s desperate play to take the debt ceiling hostage would mean an end to the clean energy investments that will help us curb the impact of climate change and build a stronger, more competitive energy economy,” said Rachel Chang, research associate for Domestic Climate at CAP and author of the analysis. “Congress should reject this plan that would raise household costs, wipe out hundreds of thousands of clean energy jobs, and slash investments that bolster our manufacturing capabilities.”

Read the analysis: “Speaker McCarthy’s Debt Ceiling Proposal Would Undo Benefits of Inflation Reduction Act” by Rachel Chang

For more information or to speak with an expert, please contact Sam Hananel at [email protected].

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