- US Senate passed $430 billion bill to fight climate change, cut drug costs and raise corporate taxes.
- The bill is known as the Inflation Reduction Act.
- The bill was approved by democrats through reconciliation.
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 package, known as the Inflation Reduction Act, passed the Senate on Sunday by a 51-50 party-line vote with Vice President Kamala Harris casting the tie-breaking ballot. “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.
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 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 the enforcement of taxes for corporations and the rich.
The bill was approved by Democrats using a parliamentary manoeuvre called ‘reconciliation’, which permits budget-related bills to avoid the 100-seat Senate’s 60-vote threshold and pass on a simple majority.