FACT SHEET: Marking One Year of the Inflation Reduction Act (USDA)

August 16, 2023 | USDA |

The Inflation Reduction Act, signed one year ago by President Biden, represents a significant investment in climate action and various aspects of the U.S. economy. The law aims to lower energy costs, foster economic opportunity, and address climate change by focusing on agriculture, forest restoration, and rural communities. Key provisions of the law include increasing access to lower-cost clean energy and improving energy efficiency, promoting climate-smart agriculture and conservation, and enhancing wildfire and extreme heat resilience in communities.

Under this act, the U.S. Department of Agriculture (USDA) has been allocated significant funding to facilitate the transition to clean and affordable energy in rural areas. The USDA has launched initiatives like the Empowering Rural America program, Powering Affordable Clean Energy program, and Rural Energy for America Program to support the purchase of renewable energy systems, energy efficiency improvements, and the availability of domestic biofuels.

The legislation also allocates substantial funding to address climate change through conservation, forestry, and climate-smart agriculture programs. It offers resources for the Natural Resources Conservation Service, dedicated to improving conservation programs. Additionally, the act emphasizes the importance of scientific research, allocating $300 million to track carbon sequestration and greenhouse gas emissions.

The Inflation Reduction Act furthers the goal of creating a diverse and equitable agricultural future by providing support to distressed borrowers, investing in land access programs, offering financial assistance to farmers who faced discrimination, and launching the NextGen program to develop the next generation of leaders in food, agriculture, and natural resources.

This legislation is part of a broader effort to build a more equitable, sustainable, and climate-resilient future for the United States.