After weeks and nights of negotiations, the all-night session is known as “vote-a-rama” that lasted for nearly 16 hours from Saturday into Sunday, senate democrats were able to push through President Joe Biden’s Inflation Reduction Act of 2022.
The measure was passed 51-50 by party lines. Vice President Kamala Harris cast the tiebreaking vote.
Biden tweeted the news of his victory. “Today, Senate Democrats voted to lower the cost of Rx drugs, health insurance, and energy — all while reducing the deficit and making the richest corporations pay their fair share. I ran to make government work for working families again. That’s what this bill does — period.”
Chuck Schumer, Senate Majority leader, tweeted a picture of him along with the caption. “I just spoke to President Biden @POTUS to celebrate this Senate Democratic Majority passing the Inflation Reduction Act to reduce inflation, to lower costs, to create jobs, and to invest boldly in fighting the climate crisis.”
This package includes the largest amount of federal legislation in American history to combat climate change. It amounts to $370 billion. It also contains $60 billion to boost renewable energy like solar panels and wind turbines.
Democrats claim that the legislation will reduce greenhouse gas emissions by 40 percent.
It fulfills promises to lower healthcare costs for seniors and reduces the cost of prescription medication. It doesn’t apply to all medications, but rather expands Medicare’s ability to negotiate the price of certain prescription drugs.
Negotiations will be in effect for 10 drugs that are covered under Medicare in 2026 and 20 drugs in 2029.
In 2025, Medicare beneficiaries will be able to pay $2,000 less out-of-pocket prescription drugs costs.
The Inflation Act of 2022 also raises taxes on some billion dollar corporations– implementing a 15% minimum tax rate for companies that have revenues of $1 billion or more. It is estimated that this will bring in $300 billion per year to the federal government.
CBS News reports that the House of Representatives will be returning from a month-long recess Friday to vote on the legislation one last time. It is expected that it will pass.