The US Congress passed a billion-dollar social and climate package, giving President Joe Biden a major political victory. After the Senate, the House of Representatives in Washington also voted on Friday in favor of the bill, which among other things provides about $370 billion for energy security and climate protection – the biggest investment in the fight against global warming in history. from the USA.
The bill passed the House of Congress by a majority of 220 to 207 along party lines. Biden now has to sign the law into effect. After the vote in the Chamber of Deputies, the president announced that he intends to sign the law into law next week.
“Today the American people won,” the Democratic Party politician wrote on Twitter. “Families will see lower prescription drug prices, lower healthcare costs and lower energy bills.”
On Sunday, the Senate voted by a minimal majority for the package, which, in addition to the equivalent of 359 billion euros for climate protection, also provides 64 billion dollars (62 billion euros) for the health care system. In addition, the state health insurance company Medicare will have the right to negotiate the prices of certain prescription drugs with the pharmaceutical industry, which should lead to lower prices.
The law also provides for a consistent minimum tax rate of 15% for large companies, and tax loopholes must be closed. The additional revenue should lead to a reduction in the budget deficit and therefore also to a reduction in inflation. The law is therefore called the Inflation Reduction Law.
Biden originally intended a much larger climate and social package, but had to cut his plans significantly in the face of internal party resistance. However, the law now passed still represents the biggest investment in the fight against global warming in US history and aims to help Biden achieve his ambitious climate goals.
A few months before the parliamentary elections in November, the passage of the law, even in its reduced version, is a great success for the president and his Democratic Party. Many Democrats — and their constituents — have been frustrated in recent months because much of Biden’s reform agenda has not moved forward.