• Measure aims to cut the cost of some medications, raise corporate taxes, and limit carbon emissions.
• It is a drastically reduced version of President Joe Biden’s first $3.5 trillion proposal.
• The bill will now be submitted to the Democratically controlled House of Representatives.

The United States Senate has adopted a $700 billion (£577 billion) economic package that includes big measures on healthcare, taxes, and climate change.

The measure aims to cut the cost of some medications, raise corporate taxes, and limit carbon emissions.

The bill’s passage, a centrepiece of President Joe Biden’s programme, is a boost ahead of the midterm elections.

However, it is a drastically reduced version of his administration’s first $3.5 trillion proposal.

The law, which had been in the works for 18 months, was approved by a vote of 51 to 50 on Sunday, with Vice President Kamala Harris providing the decisive vote. Previously, it was blocked by two Democratic senators who shared Republican worries about the expense.

It will now be submitted to the Democratically controlled House of Representatives, where it is likely to pass in a vote on Friday before being signed into law by the president.

The Inflation Reduction Act contains legislation that would empower the government to negotiate cheaper prescription drug costs via its Medicare health insurance programme for anyone over the age of 65.

According to nonpartisan Congressional Budget Office projections, this will save hundreds of billions of dollars over the next decade.

The plan also includes a minimum 15% tax on most firms with income of more than $1 billion each year. This policy, which has been a source of debate in Congress, is opposed by business organisations, who claim it would restrict investment.

The law also provides $369 billion for climate action, making it the greatest investment in climate action in US history.

Some families might earn up to $7,500 in tax credits for purchasing an electric vehicle, or $4,000 for purchasing a secondhand vehicle. Billions of dollars will also be invested to accelerate the manufacture of renewable technologies such as solar panels and wind turbines.

In addition, $60 billion will be distributed to areas that have suffered the most as a result of fossil fuel pollution.

The bill’s authors claim that it would reduce carbon emissions by 40% by 2030.

The climate action comes as the United States is experiencing a surge of severe weather, including a recent heatwave and disastrous floods in Kentucky that killed scores. On Monday, President Biden toured flood-damaged districts of the state.

Flooding is caused by a variety of variables, but a warmer atmosphere induced by climate change increases the likelihood of heavy rainfall.

The globe has already warmed by around 1.1 degrees Celsius since the beginning of the industrial age, and temperatures will continue to rise unless governments throughout the world drastically reduce emissions.

Senate Democratic Leader Chuck Schumer stated: “After more than a year of hard work, the Senate is making history. To Americans who’ve lost faith that Congress can do big things, this bill is for you.””

Senator Brian Schatz, a Democrat from Hawaii, was said to be in tears as he exited the chamber. According to the New York Times, he stated,”Now I can look my kid in the eye and say we’re really doing something about the climate,”

Some Republicans have stated their intention to obstruct or hinder the bill’s advancement.

Florida Republican Senator Marco Rubio said it was out of touch since it did not help cut costs for working people or put criminals in prison – “the things working people in this nation worry about.”

On Saturday, Congress discussed a revised version of the measure, after concessions on the more ambitious initial proposal were reached with two key Democratic holdouts, West Virginia Senator Joe Manchin and Arizona Senator Kyrsten Sinema.

Mr. Manchin was concerned that the previous measure would have increased inflation.

President Biden, who has dubbed the law “historic,” has promised to restore the United States to the world scene in terms of climate action. In April of last year, he vowed to reduce greenhouse gas emissions by at least half by 2030.

He promised $2.2 billion in funding last month to assist create infrastructure that can resist harsh weather and natural calamities.

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