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Biden’s ‘Inflation Reduction Act’ Will Cost Up to $2 Trillion by 2035, Study Estimates

Posted on Wednesday, March 19, 2025
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by Outside Contributor
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The Biden-Harris administration’s so-called Inflation Reduction Act will cost up to between $936 billion and $1.97 trillion over the next 10 years, according to a new study from the Cato Institute.

Democrats in the House and Senate passed the Inflation Reduction Act in August 2022, said to cost $891 billion at the time, without a single Republican vote. Then-President Joe Biden said the measure would lower inflation, as well as fight climate change, but critics say the opposite has been true.

The Cato Institute, a libertarian think tank, estimates that the energy subsidies in the act will cost between $936 billion and $1.97 trillion over the next 10 years, and between $2.04 trillion and $4.67 trillion by 2050.

Those numbers are well above the original estimation.

The Congressional Budget Office and the Joint Committee on Taxation estimated the energy-related subsidies in the legislation would cost about $370 billion when Congress passed it. Goldman Sachs later estimated the Inflation Reduction Act’s 10-year cost would be $1.2 trillion.

President Donald Trump signed an executive order on Day One in office pausing funding on the climate and clean energy provisions of the Inflation Reduction Act.

Trump’s Jan. 20 directive “unleash[es] affordable and reliable energy and natural resources.” The order “ensure[d] that no federal funding be employed in a manner contrary to the principles outlined in this section unless required by law.”

Biden called the Inflation Reduction Act “the most important climate legislation in the history of the world. It commits more public spending to addressing climate change than any other single piece of legislation or other government action.

Elizabeth Troutman Mitchell is the White House Correspondent for “The Daily Signal.”

Reprinted with permission from The Daily Signal – By Elizabeth Troutman Mitchell

The opinions expressed by columnists are their own and do not necessarily represent the views of AMAC or AMAC Action.

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mtice
mtice
8 hours ago

Trump defiantly has his work cut out for him undoing all the evil put in place by the previous administration and the deep state. God be with him.

Robert Zuccaro
Robert Zuccaro
6 hours ago

“Inflation reduction” like “New Green Deal”? Words having nothing to do with what it really buys.

uncleferd
uncleferd
6 hours ago

I can’t believe anyone’s surprised. This was known when it was first passed. Biden couldn’t define it himself, so his “people” spun it wildly for him.

Billy
Billy
6 hours ago

Ole Joe flunked ECONOMICS 101!!!

anna hubert
anna hubert
6 hours ago

Biden or Obama , same intended disaster, that has to be dealt with Trump who has to do the job of Superman

Glen
Glen
5 hours ago

Subsidies for ANYTHING by Demo-rats or Republicans or RHINO’S is ROBBERY, THEFT, STEALING of American TAX Dollars. If any service or product cannot make it on it’s own MERIT then it is NOT NEEDED! Wind Generators require 380 GALLONS of oil EACH and they leak AND they require another 380 GALLON oil change in two years if they last that long. The blades shed fiberglass that flies for miles and have to be replaced regularly AND they are one of the MOST INEFFICIENT ways in the world to generate electricity. Solar panels work well for small jobs such as gates, yard lights, RV’S in the wilderness IF you keep them clean. Dirty they lose 50% or more efficiency. An Engineer friend calculated the cost VS breakeven for solar on his house and decided he would not live long enough to break even. I worked the last ten years of my working life (retired at 65) working in construction (welding inspection) on “Scrubbers” that we installed on the stacks at those “NASTY” coal fired power plants and when we left them they put out NO particulates or smoke into the air we breath. On cold morning the only thing you see is steam. Sulfur or Sulphur depending on how you want to spell it is trapped in the Scrubbers and sold for construction use.

Randall L. Beatty
Randall L. Beatty
2 hours ago

I really feel bad for President Trump and his team they really have to work to make this country in a better place no thanks to Biden and Harris and it was not just because of a weak mind Biden had a VP that also did nothing and they had all the Dems up there that were totally behind him and they all had a hand in what Biden had done in all his years of screw ups and they did not care and when Harris lost to President Trump you can bet there were smiles on the Dems faces knowing President Trump would have a hard job to bring the country back and with all the haters in this country it made it worse.

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