President signs Inflation Reduction Act into law

President Joe Biden has signed the Inflation Reduction Act into law on August 16 — the bill includes, in addition to sweeping changes to health care, taxation, and climate policy, $4 billion in drought resilience funding and $550 million for domestic water programs.

The most influential part of the bill is its effort to expand tax credits and create new tax credits for low-carbon energy development. This could influence the energy management procedures for water utilities nationwide. However, according to the National Ground Water Association (NGWA), the bill also includes some major water provisions:

• $4 billion to the U.S. Bureau of Reclamation for drought relief programs
• $550 million for domestic water programs in disadvantaged communities
• $12.5 million for emergency drought funding for Tribes

The bill had passed the Senate on August 7 and passed the house of Representatives on August 12.