Proposed Cuts to Inflation Reduction Act Could Cost U.S. Economy $160 Billion

Economic models predict significant job losses, higher energy costs, and disproportionate harm to Republican-led states if the IRA is curtailed.

Repealing or significantly curtailing the Inflation Reduction Act could reduce U.S. GDP by $160 billion and result in 790,000 job losses by 2030, according to new economic modeling.
Household energy bills in states like Texas could increase by an average of $370 annually by 2035 due to reduced investment in renewable energy.
Republican-controlled districts, which have received 77% of clean energy investments since 2022, would face the most severe economic consequences from IRA cuts.
Speaker Mike Johnson has indicated that his approach to modifying the IRA would involve targeted cuts described as 'somewhere between a scalpel and a sledgehammer.'
Administrative actions, including cuts by Elon Musk’s Department of Government Efficiency, are reportedly undermining the IRA's implementation even without legislative repeal.