U.S. Senate Passes Historic Climate Legislation

The U.S. Senate has passed historic legislation aimed at limiting climate change.

The legislative passage is being hailed as a major victory for President Joe Biden and his
Democratic party just months before midterm Congressional elections are held in November.

The Senate voted 51-50 along party lines to pass the legislation, with all Republicans voting
against the bill and all Democrats voting for it. Vice-President Kamala Harris cast the tie-
breaking vote.

The legislation, called the “Inflation Reduction Act,” now heads back to the House of
Representatives for approval and then to President Biden for his signature.

The legislation, which is 755-pages long, includes $430 billion U.S. to combat climate change
and extend healthcare coverage.

Most of the spending (more than $300 billion) goes towards climate change and clean energy
projects, including incentives for farmers and ranchers to reduce methane emissions; an
extension of a electric vehicle tax credit; and the launch of a National Climate Bank that will
make investments in new clean energy technologies.

The legislation also enables Medicare to negotiate prices with drug companies for the first time,
a move that will lower prescription drug prices for senior citizens, and raises revenue through a
new 15% minimum tax on large corporations.

The climate legislation follows a $1 trillion U.S. infrastructure package that was passed last
year, as well as passage of the most significant gun reform legislation in a generation, a major
science competitiveness bill, and a recent vote to admit Finland and Sweden into NATO.