[447] The act provides billions of dollars in new funding to boost domestic research and manufacturing of semiconductors in the United States, to compete economically with China.[448]
The Inflation Reduction Act of 2022 was introduced by Senators Chuck Schumer and Joe Manchin, resulting from continuing negotiations on Biden's initial Build Back Better agenda, which Manchin had blocked the previous year.[449][450] The package aimed to raise $739 billion and authorize $370 billion in spending on energy and climate change, $300 billion in deficit reduction, three years of Affordable Care Act subsidies, prescription drug reform to lower prices, and tax reform.[451] According to an analysis by the Rhodium Group, the bill will lower US greenhouse gas emissions between 31% and 44% below 2005 levels by 2030.[452] On August 7, 2022, the Senate passed the bill (as amended) on a 51–50 vote, with all Democrats voting in favor, all Republicans opposed, and Vice President Kamala Harris breaking the tie. The bill was passed by the House on August 12[452] and was signed by Biden on August 16.[453][454]
On October 6, 2022, Biden pardoned all Americans convicted of small amounts of marijuana possession under federal law.