Status: 08/13/2022 01:30 AM
The US Congress has passed a package of laws to invest billions in climate protection and social affairs. After the Senate, the House of Representatives also approved the so-called Anti-Inflation Act.
The US Congress passed a $1 billion climate and social package, giving President Joe Biden a significant political victory.
Following the Senate, the House of Representatives in Washington also voted in favor of the legislation, which provides for energy security and climate protection, among other things, about $370 billion – the largest investment in the fight against global warming in US history.
Biden plans to sign law next week
The bill passed the House of Congress with a majority of 220 to 207 along party lines. Biden will now have to sign off on the law that goes into effect. After voting in the House of Representatives, the president announced that he intended to sign it into law next week.
“The American people wins today,” the Democratic Party politician wrote on Twitter. “Families will see lower prescription drug prices, lower health care costs, and lower energy bills.”
The purpose of the law is also to reduce inflation.
On Sunday, the Senate voted by a wafer-thin majority for the package, which, in addition to the equivalent of 359 billion euros for climate protection, also provides 64 billion dollars (62 billion euros) for the health care system. In addition, the state health insurance company Medicare should be given the authority to negotiate the prices of certain prescription drugs with the pharmaceutical industry, which should lower the prices.
The law also provides for a consistent minimum 15 percent tax rate for large companies, and tax loopholes to be bridged. The additional revenue should bring down the budget deficit and thus inflation. That’s why the law is called the Inflation Reduction Act.
Largest investment in climate protection in US history
Biden had originally aimed for a much larger climate and social package, but internal resistance from the party forced his plans to be cut short.
The legislation that has now been passed represents the largest investment in the fight against global warming in US history and is intended to help Biden achieve his ambitious climate goals.
A few months before midterm congressional elections in November, the passage of the law, even in its diluted version, is a major success for the president and his Democratic Party. Many Democrats – and their constituents – have been disappointed over the past few months that large parts of Biden’s reform agenda have not progressed.