US Senate Passes $430 Billion Bill To Fight Climate Change, Cut Drug Costs

In a major victory for Democrats, the United States Senate on Sunday, 7 August, passed a bill intended to fight climate change, lower drug prices, and raise some corporate taxes.

(Photo: The Quint)

In a major victory for Democrats, the United States (US) Senate on Sunday, 7 August, passed a bill intended to fight climate change, lower drug prices, and raise some corporate taxes.

The Inflation Reduction Act was passed after a 27-hour weekend session. "This bill is a major step forward in Democrats' fight to put #PeopleOverPolitics: lowering kitchen table costs, reducing the cost of health care, creating jobs and addressing the climate crisis," House Speaker Nancy Pelosi tweeted.

"By defending America’s energy security and reducing carbon pollution by nearly 40 percent by the end of the decade, it will slash energy costs and help save the planet," Pelosi said.

The $430 billion legislation was passed by a razor thin margin of 51-50, with Vice President Kamala Harris casting the tie-breaking ballot, Reuters reported.

'Boldest Clean Energy Package in American History'

The bill will now go to the House of Representatives for a vote, where it is expected to pass. It will then go to the White House for President Joe Biden's signature.

"The Senate is making history," said Senate Majority Leader Chuck Schumer as he put his fists in the air while Democrats celebrated in the Senate, adding that the bill contained "the the boldest clean energy package in American history."

"To Americans who’ve lost faith that Congress can do big things, this bill is for you. This bill is going to change America for decades," he said.

Democrats hope the bill's passage would help the party's candidates win their respective elections on 8 November in the House and Senate. This comes as President Biden's approval points have taken a massive nosedive amid rising inflation in the country.

The bill aims to reduce carbon emissions and bring out a shift to green energy. Further, it aims to cut prescription drug costs for senior citizens and tighten enforcement on taxes for corporations and the rich.

Since the measure pays for itself and will help reduce the fiscal deficit over time, Democrats argue that it would curb inflation.

Republicans, however, have denounced the bill saying that it will not help in reducing inflation. Rather, it would undermine growth at a time when the economy is in danger of going into recession.

The bill was approved by Democrats using a parliamentary maneuver called 'reconciliation', which permits budget-related bills to avoid the 100-seat Senate's 60-vote threshold and pass on a simple majority.

Democrats also repelled over 30 amendments, points of order, and motions suggested by Republicans.

(With inputs from Reuters.)