Senate Democrats Pass ‘Historic’ Climate, Healthcare And Tax Bill
There’s more than $370 billion for energy and climate programs, including a $25 million set aside for Native Hawaiian communities.
WASHINGTON — Democrats in the Senate passed major legislation Sunday that will lower prescription drug prices, increase taxes on corporations and invest hundreds of billions of dollars in green energy and other measures meant to take on climate change.
The vote, which fell entirely along party lines, was a major accomplishment for President Joe Biden’s domestic agenda, but is a far cry from the $3.5 trillion Build Back Better proposal he put forth last year.
According to a press release from U.S. Sen. Brian Schatz, Hawaii will benefit from several proposals in the legislation — called the — which is expected to pass the House by the end of the week.
ճ’s for climate and energy programs, including tax credits for rooftop solar arrays, battery storage and electric vehicles.
The legislation sets aside $60 billion for projects focused on low-income and disadvantaged communities. ճ’s also a specific provision to give $25 million to the Native Hawaiian community for climate resilience and adaptation.
“This is a historic victory for the United States and the planet,” Schatz said in a written statement. “By investing in clean energy, clean transportation, and climate-smart manufacturing, we’ll cut emissions 40 percent by the end of the decade.”
Schatz as he left the Senate floor after voting in favor of the legislation.
In addition to climate, the legislation will allow Medicare to negotiate drug prices and cap the out-of-pocket costs for recipients at $2,000. The bill also caps the out-of-pocket cost for insulin for Medicare beneficiaries at $35.
Initial projections estimate that the bill will reduce the deficit over the next decade in part by imposing a minimum 15% tax on corporations making more than $1 billion in profits.
Democrats are also seeking to bolster the Internal Revenue Service’s oversight of wealthy Americans by infusing $80 billion into the agency to ensure that the rich pay their fair share.
“The Inflation Reduction Act is a historic investment in our families, our climate, and our future,” U.S. Sen. Mazie Hirono said in a statement. “From tackling inflation, to combating climate change, to making health care and prescription drugs more affordable, this bill makes meaningful progress on some of the most pressing challenges families in Hawaii are facing, all while ensuring working families don’t pay a cent more in taxes.”
