President Joe Biden has signed into law a $430 billion bill that is seen as the biggest climate package in US history, designed to cut domestic greenhouse gas emissions as well as lower prescription drug prices.
Biden was joined by Democratic leaders including Senator Joe Manchin of West Virginia, whose support was crucial to the passage of the Inflation Reduction Act along party lines after he had initially opposed a similar measure.
"Joe, we never had a doubt," Biden said of Manchin on Tuesday at the White House.
Biden used the event to criticise Republicans as he sought to use a string of Democratic-led legislative victories to help boost Democrats in congressional midterm elections in November.
"In this historic moment, Democrats sided with the American people and every single Republican sided with the special interests," said Biden.
"Every single Republican in Congress voted against this bill," he added.
READ MORE: US lawmakers pass massive climate, health bill in big win for Biden
[embed]https://www.youtube.com/watch?v=FHWSdHFxXl8[/embed]
"Democrats robbed Americans"
It will also allow Medicare to negotiate lower drug prices for the elderly and ensure that corporations and the wealthy pay the taxes they owe.
Democrats say it will help combat inflation by reducing the federal deficit.
Senate Republican leader Mitch McConnell said the new law will have the opposite impact.
"Democrats robbed Americans last year by spending our economy into record inflation. This year, their solution is to do it a second time. The partisan bill President Biden signed into law today means higher taxes, higher energy bills, and aggressive IRS audits," he said, referring to the Internal Revenue Service.
READ MORE: Senate Democrats pass $740B 'Inflation Reduction Act' package in US
Source: Reuters
The Senate on Sunday passed the Inflation Reduction Act (IRA) along party lines, 51-50, handing Democrats a crucial legislative win as the midterm cycle ramps up.
Vice President Kamala Harris cast the tie-breaking vote with all Democrats in support of the legislation and all Republicans opposed. The proposal was passed via the budget reconciliation process, which allows it to be passed with a simple majority rather than the 60 votes typically needed to overcome a filibuster.
The passage of the sprawling climate, tax and health care legislation now sets up a vote in the Democratic-controlled House, where the bill is expected to pass before President Joe Biden signs it into law.
Included in the bill, supporters say, are measures to support job creation, raise taxes on large corporations and the wealthy, allow Medicare to negotiate down some prescription drug costs, expand the Affordable Care Act health care program and invest in combating climate change by implementing tax credits for clean energy initiatives, among other things.
The legislation's tax provisions, prescription drug-pricing reform, as well as boosted IRS tax enforcement measures, are anticipated to raise an estimated revenue of $739 billion -- $300 billion of which Democrats say would go toward reducing the deficit.
The plan would reduce federal budget deficits by $102 billion over 10 years, according to the nonpartisan Congressional Budget Office.
The bill passed the Senate after a punishing, approximately 16-hour "vote-a-rama," in which any senator could introduce an amendment to the bill as part of the budget reconciliation process.
The amendment process fueled painful votes for each party.
Vulnerable Democratic incumbents up for reelection this year had to dance around a vote on the Biden administration's decision to scrap Title 42, a Trump-era order using coronavirus concerns to prevent migrants from entering the country while seeking asylum. Republicans, meanwhile, mostly voted against a Democratic amendment that would have capped out-of-pocket insulin costs at $35 a month for people with private health insurance.
The IRA passage marks the culmination of grueling negotiations between Senate Majority Leader Chuck Schumer, D-N.Y., and Sen. Joe Manchin, D-W.Va., who had been a consistent obstacle to cobbling together a Democrats-only social spending bill via reconciliation.
The pathway for a successful vote was cemented late last week when Sen. Kyrsten Sinema, D-Ariz., another key centrist, signed on after winning some tweaks to the bill.
Senator Patrick Leahy is wheeled to an elevator from the Senate floor during amendment votes, also called the "vote-a-rama", on the Inflation Reduct Act 2022, at the U.S. Capitol building in Washington, Aug. 7, 2022.
Ken Cedeno/Reuters
Among the changes Sinema won were the eliminations of tax provisions targeting wealthy hedge fund managers and private equity executives. The Senate rules official also scrapped a provision intended to reprimand drug companies that raise the prices of some prescription drugs faster than inflation for patients with private insurance.
Still, the bill's passage marks a major step toward President Biden's campaign promises to tackle climate change, reform prescription drug pricing and other issues; and it gives Democrats a new legislative win to run on heading into the November midterms, in an environment where many voters have soured on Biden's handling of the economy and historic inflation.
The IRA also extends a streak of achievements for Biden and congressional Democrats, including passage of a bipartisan anti-gun violence bill and legislation to boost the domestic semiconductor industry.
"This bill is going to change America for decades," Schumer crowed after final passage.
"This vote crystalizes the contrast of the midterms. Senate Democrats have taken a historic step to lower costs like prescription drug prices, tackle inflation and address working families' most pressing concerns. Every Republican voted against the bill because it holds Big Oil, Big Pharma and other corporations that have been jacking up prices accountable, and finally makes them pay their fair share," added Sen. Gary Peters, D-Mich., the chair of Senate Democrats' campaign arm.
Republicans have already forecasted that they'll paint Democrats as uncaring about Americans' financial burdens at a time of rapid price hikes while passing billions of dollars in new spending.
"This idea that this massive tax increase will just somehow be absorbed by corporate America when they will pass those costs along to consumers, and it will make inflation worse," Senate Minority Whip John Cornyn, R-Texas, said last week.
