President Biden's clean-energy law will cost about $1.2 trillion, a figure three times more than what supporters initially claimed.
The Inflation Reduction Act was passed last year in an effort to address climate change, security and energy. The legislation would spur trillions of private sector investment, according to lawmakers who voted for it.
According to an analysis by Goldman Sachs Group Inc., the $1.2 trillion in government outlays will unleash another $3 trillion in investment by businesses and individuals to build and expand climate-friendly ventures.
The Congressional Budget Office predicted that the law's energy and climate provisions would cost $391 billion between 2022 and 2031, according to The Wall Street Journal.
The tax credits of the IRA will cost hundreds of billions more.
The act was signed into law amid historically high inflation levels. The Consumer Price Index CPI is a measure of inflation, which will allocate $369 billion to climate and energy policies, expand the Affordable Care Act, and add a 15% minimum corporate tax for companies that earn more than $1 billion per year, according to the Bureau of Labor Statistics BLS.