Senate Majority Leader Chuck Schumer, DN.Y., and Sen. Joe Manchin, DW.Va., have released preliminary details of a bill to address climate change, taxes, health care and inflation.
The deal is a major reversal for Democrats, who had scaled back their ambitions for a package to address potential flaws in the Affordable Care Act and changes in prescription drug prices after Manchin expressed concern about approving more spending during record inflation.
After several months of negotiations, we have finalized legislation that will invest approximately $300 billion in deficit reduction and $369.75 billion in deficit reduction. Energy security and climate change “The investments are fully paid for by closing tax loopholes on wealthy individuals and corporations,” the senators said in a joint statement.
Act – named Inflation Reduction Law 2022 – Also continues to expand the Affordable Care Act passed during the 2025 pandemic, allowing Medicare to follow suit. Lower cost of medicine By negotiating directly with pharmaceutical companies. Democrats say this plan Avoids any new taxes For families making $400,000 or less and includes no new small business tax.
Read the bill Here.
According to documents released by Schumer and Manchin, the new deal aims to “cut carbon emissions by nearly 40 percent by 2030” and address inflation while reducing the budget deficit. Schumer planned to introduce the bill to the Senate Wednesday night for a vote on the bill next week. Democrats plan to pass the bill using a budget process known as reconciliation to avoid a Republican defeat, provided the legislation is supported by Senate Democrats.
Manchin and Schumer say they have reached an agreement with House Speaker Nancy Pelosi, D-Calif., and President Biden to pass a licensing reform bill by the end of the year aimed at easing licensing for domestic energy generation and transmission.
The deal is a significant expansion of the much-restricted bill that Democrats had hoped to pass through compromise before the midterm elections, though it is still a long way from the broader “Building a Better Back” plan they began negotiating last year. The proposal initially included huge domestic spending to address climate change, taxes, health care and social programs.
With inflation concerns rising in the country, Manchin has become a leading voice against major spending. He could go it alone because Democrats need unified support to pass the bill in the Senate.
The deal comes hours after the Senate passed a landmark bipartisan bill to expand domestic production of critical semiconductor chips that have been in short supply, leading to delays in new car deliveries and supply chain problems for smartphones, computers and medical equipment. Senate Minority Leader Mitch McConnell has threatened to block the semiconductor bill, known as CHIPS, if Democrats continue to pursue climate and tax legislation.
Finalizing the CHIPS bill paved the way for Democrats to reach a deal without threatening to lose support for the semiconductor bill, which they saw as a vital economic and political achievement.
The next step is for the Senate representative to assess whether the proposals comply with the Senate’s budget rules that govern the reconciliation process. Once that’s done, it’s done through vote-a-rama, a process that can bypass the 60-vote threshold that bills normally need to clear to pass. After that, the House must pass a similar bill before President Biden signs it.
In a statement after the deal was announced, Biden praised it as “an action the American people have been waiting for.”
“It addresses today’s problems — high health care costs and general inflation — as well as investing in our energy security for the future,” he said.