The Senate on Sunday passed a mega package of measures to mitigate global warming, minimize drug costs and make big businesses pay higher taxes.
President Biden and Democrats said the legislation, costing an estimated $740 billion, would do all those things while fighting record-high inflation, too.
The bill, dubbed the Inflation Reduction Act, passed along party lines, with Vice President Kamala Harris casting the tie-breaking vote.
It came after key Biden priorities embedded in the legislation had appeared to be all but dead following months of fruitless negotiations last year — and as Dems are fighting to maintain control of Congress in the upcoming midterm elections.
“It’s been a long, tough and winding road, but at last, at last we have arrived,” Senate Majority Leader Chuck Schumer (D-N.Y.) said on the home stretch of a marathon weekend voting session.
“The Senate is making history. I am confident the Inflation Reduction Act will endure as one of the defining legislative measures of the 21st century,” he added.
The Act includes nearly $400 billion to fight climate change — the biggest investment the feds have ever dedicated to the cause, Democrats boasted. The funding covers tax credits for buying electric vehicles, along with the manufacture of solar panels and wind turbines. There are also home energy rebates and cash to reduce pollution in minority communities, among other measures.
Huge as it was, the legislation marked a major reduction of Biden’s original domestic spending proposals, which were on the order of $3.5 trillion.
Costs were lowered to win over centrist Sens. Joe Manchin of West Virginia and Kyrsten Sinema of Arizona, both Democrats. Dems also got Manchin’s support by including a measure for more offshore oil lease sales.
On drug costs, the Act enables the federal government to negotiate prices for some pricey prescriptions for Medicare recipients. It sets a $2,000 cap for out-of-pocket drug costs for them.
Big corporations are facing higher taxes under the legislation. The legislation imposes a 15% minimum tax rate on businesses with $1 billion or more in income.
Republicans trashed the legislation, arguing it would damage the economy.
“Democrats have already robbed American families once through inflation, and now their solution is to rob American families a second time,” said Senate Minority Leader Mitch McConnell, (R-Ky.).
The Democrat-controlled House of Representatives is expected to pass the Inflation Reduction Act after returning from recess this Friday.
With News Wire Services