Inflation Reduction Act Climate Cost Up to $1.4 Trillion? Podesta: 'I Haven't Heard That One Yet' (August 16, 2023)

On the first anniversary of the Inflation Reduction Act, a reporter asked the White House’s clean energy adviser about a price tag that had soared. “And meantime, we were told initially that the climate investments in this bill would cost somewhere around $385 billion. Now we’ve got new estimates putting that number at at least $1.4 trillion and potentially could go even higher —” the reporter said on Aug. 16, 2023 [1].

“With respect to the cost, that’s — that’s on the — I — you know, I haven’t heard that one yet,” Senior Advisor for Clean Energy Innovation John Podesta answered, according to the official White House transcript. “It’s Penn Wharton — that one,” the reporter told him [1].

Podesta then called the higher cost “a good-news story.” “I think the Joint Tax Committee said that there’s been a greater take-up of — of the manufacturing tax credit that — than they anticipated last summer when they did their score. But that’s a — that’s a good-news story. That means that people are investing in America,” he said [1].

Jean-Pierre opened with a joke. “As you all know, today is the first anniversary of the Inflation Reduction Act. You know, most one-year-olds can barely walk. But this one is — this one-year-old is up and running,” she said. “You guys didn’t laugh at my one-year-old joke. (Laughter.)” [1]

The video above shows the exchange at the Aug. 16, 2023, briefing. Quotes are from the official White House transcript and the American Presidency Project [1][2].

”I Wish I Hadn’t Called It That”

The reporter, whom Press Secretary Karine Jean-Pierre called Jacqui, raised Biden’s own words. “And the President has said he wished he didn’t call this the Inflation Reduction Act. What should you call it?” [1]

Six days earlier, at a fundraiser in Park City, Utah, Biden had said exactly that. “And by the way, the Inflation Reduction Act—I wish I hadn’t called it that, because it has less to do with reducing inflation than it does to do with dealing with providing for alternatives that generate economic growth,” he told donors [2].

“Well, he said, following that sentiment — because I think it’s a complicated bill — that it also has reduced costs,” Podesta answered [1].

”Sell or to Sort of Brand the Legislation in a Different Way”

Another reporter, whom Jean-Pierre called Asma, had asked about the name earlier. “Does the White House intend to sell or to sort of brand the legislation in a different way moving forward?” the reporter asked. “But we did see the President himself acknowledge last week that it has less to do with reducing inflation than with providing alternative forms of economic growth.” [1]

Domestic policy adviser Neera Tanden answered with the law’s benefits. “Well, I would say that the — the law itself is — is delivering benefits. In just a few weeks, we will have HHS announce the first 10 drugs that will be negotiated,” she said [1].

”Grocery Stores and Gas Stations”

A reporter asked what the law did for everyday bills. “But for most people, you know, it’s grocery stores and gas stations. Those are the places where they’re spending money out of pocket most regularly. What do you say to them? I mean, other than just ‘Hang tight, it’s getting better.’” [1]

“I will say that of the — of the stresses on families every day, healthcare costs are one of their paramount concerns,” Tanden answered [1].

Another reporter asked when Americans would give the President credit. “At what point does this resonate with Americans? And do you expect they’ll ever give credit to the President while he’s in office for — for these accomplishments?” Tanden said she expected that “as people see in their pocketbooks that they are paying less for prescription drugs for the first time because of the Inflation Reduction Act, they’ll make the connection.” [1]

“Broadly Unhappy”

The reporter who asked about the cost also pointed to the polls. “Polls keep showing that people are broadly unhappy with the President’s handling of inflation, in particular,” the reporter said [1].

“A number of economists concluded that the inflation that has come down was not a direct result of the IRA,” the reporter added [1].

Podesta said the law was working. “And so, I think that the statute is working as it’s intended,” he said [1].

”Survivor After Survivor”

The briefing began with the Maui wildfires. “We keep interviewing survivor after survivor who says that either they didn’t see any government personnel or assistance for days, or that they still haven’t. How do you explain the disconnect between what they’re saying and what you’re saying about all the resources that are there in Maui?” a reporter asked FEMA Administrator Deanne Criswell [1].

“I think you need to understand that this community is going through an amazingly traumatic event,” Criswell said [1].

By the Numbers

$385 billion: the original climate cost estimate the reporter cited [1].
$1.4 trillion: the newer estimate, per the reporter [1].
10: drugs Tanden said would be picked for Medicare price negotiation [1].
6 days: between Biden’s “I wish I hadn’t called it that” and the briefing [1][2].

What Happened Next

The cost fight did not end. For the Penn Wharton estimate when it first came up in April 2023, and Jean-Pierre calling it “a good thing,” see HYGO News’ page on April 27, 2023.

For Biden’s Milwaukee speech the day before the briefing, see the page on Aug. 15, 2023.