Center on Budget and Policy Priorities

Climate Change

Kerry-Lieberman Climate-Change Bill Protects Low-Income Families

"The American Power Act, which Senators John Kerry (D-MA) and Joseph Lieberman (I-CT) released in draft form on May 12, includes important provisions to help ensure that the legislation’s measures limiting greenhouse-gas emissions do not increase hardship by making poor families poorer or pushing more people into poverty.

"Like the climate-change bill the House passed last year, the Kerry-Lieberman proposal includes a program of direct payments (“energy refunds”) for low-income households…. The proposal also includes a smaller refundable tax credit for families with modestly higher incomes." Read more

Related:

How Low-Income Consumers Fare in the House Climate Bill

Basics

Policies that restrict greenhouse-gas emissions will significantly raise the price of fossil-fuel energy products. That is necessary to encourage energy efficiency and greater use of clean energy sources, but it will pose serious challenges for low- and moderate-income households. Fortunately, well-designed climate policies can reduce greenhouse gas emissions in a way that does not increase poverty or otherwise harm low- or moderate-income households and is fiscally responsible.

Featured Experts

Robert Greenstein

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Chad Stone

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The Center analyzes the potential effects of climate change policies on low- and moderate-income households and the federal budget. It also designs measures to ensure that the increased energy prices resulting from climate change legislation do not drive more households into poverty or make poor households poorer.