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On January 8, 2025, U.S. Representative Scott Perry (R-PA) and 15 other House Republicans introduced legislation to repeal the Inflation Reduction Act (IRA) of 2022.
The IRA, enacted without Republican support, includes provisions such as:
$369 billion investment in energy and climate change infrastructure.
Caps on out-of-pocket prescription drug costs for Medicare Part D subscribers, limiting them to $2,000 annually starting January 1, 2025.
Authorization for Medicare to negotiate lower prices on commonly used drugs, with the first 10 negotiated prices taking effect in 2026.
The Department of Health and Human Services estimates that nearly 19 million Americans will save an average of $400 in 2025 due to the out-of-pocket cap, with those facing the highest prescription costs saving approximately $2,500.
Despite the IRA's popularity—evidenced by a September 2024 KFF Health poll showing 85% of registered voters, including 77% of Republicans, support Medicare drug price negotiations—Republican lawmakers and pharmaceutical industry donors are advocating for its repeal.
With Republicans now holding a Senate majority and former President Donald Trump set to return to the White House, the likelihood of full or partial repeal has increased.
Notably, Rep. Perry, who opposed the IRA, previously highlighted a clean energy project in Dauphin County, Pennsylvania, made possible by the law's tax credits.