At a fundraising event Thursday night, President Biden admitted that his signature piece of legislation, the Inflation Reduction Act (IRA) wasn’t really an anti-inflation bill.
“I wish I hadn't called it that,” Biden stated, “because it has less to do with reducing inflation than it does to do with dealing with providing for alternatives that generate economic growth.”
The quote was reported via the White House press pool, and shared on Twitter by several journalists, including Politico’s Jennifer Haberkorn.
Biden, at a fundraiser, expresses regret over the name of 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.”
— Jennifer Haberkorn (jennifer.hab on 🧵) (@jenhab) August 10, 2023
The admission is a stark departure from the White House’s previous position, and Biden’s own statements, insisting that the Inflation Reduction Act was an anti-inflation bill.
For example, when the legislation came before the Senate, Biden urged lawmakers to pass it, calling it “the strongest bill you can pass to lower inflation…”
My message to Congress is this:
— President Biden (@POTUS) July 28, 2022
The Inflation Reduction Act is the strongest bill you can pass to lower inflation, reduce costs, and tackle our climate crisis.
So pass it. Pass it for the American people – and pass it for America.
After the bill passed the Senate, administration officials, including mid-level staffer Andrew Bates, spread a Biden statement which read “Tonight, we’ve taken another critical step toward reducing inflation.”
Biden allies continued to push this message throughout the year. Connecticut Senator Chris Murphy celebrated the bill last month, tweeting “Funny how inflation has come down every month since the Inflation Reduction Act passed Congress.”
(As luck would have it, the next CPI report showed inflation rose to 3.2% in July, undermining Murphy’s ill-timed tweet).
Huh. Funny how inflation has come down every month since the Inflation Reduction Act passed Congress. https://t.co/SLuGzlx8Jj
— Chris Murphy 🟧 (@ChrisMurphyCT) July 26, 2023
The pivot is crucial because the Inflation Reduction Act’s identity as an anti-inflation bill made it possible for Democrats to pass the legislation in the Senate.
West Virginia Senator Joe Manchin refused to support an early version of the bill, but changed his mind after Democrats slightly altered the bill and rebranded it as The Inflation Reduction Act. Hailing the legislation as “great for America,” Manchin would cast the deciding vote.
Biden recognized Manchin’s crucial role by gifting him the pen which Biden used to sign the bill into law.