The Chamber of Deputies approved on Friday, 12, the package that will inject around US$ 750 billion in an investment program in health, energy and climate. With a final vote of 220 to 207, the passage was a significant victory for President Joe Biden, who is expected to sign the bill into law.

While the sums were sharply reduced from Biden's original spending package, Build Back Better the bill represents by far the country’s largest investment to date in steps to address climate change.

The final approval of the package takes place at a critical moment when Democrats are fighting to retain control of narrow majorities in Congress.

“The sweeping bill – named the Inflation Reduction Act – would represent the largest climate investment in US history and make major changes to health policy by giving Medicare the power for the first time to negotiate the prices of certain prescription drugs and extending expiring health care subsidies for three years. The legislation would reduce the deficit, be paid for through new taxes -- including a 15% minimum tax on large corporations and a 1% tax on stock buybacks -- and boost the Internal Revenue Service's ability to collect. It would raise over $700 billion in government revenue over 10 years and spend over $430 billion to reduce carbon emissions and extend subsidies for health insurance under the Affordable Care Act and use the rest of the new revenue to reduce the deficit”, according to CNN publication.

In the Senate, the bill passed on a final, party-line vote of 51-50, with Vice President Kamala Harris breaking the tie.

Senate Democrats, who control only a narrow 50-seat majority, ultimately stayed unified to pass the legislation. And they used a special, filibuster-proof process known as reconciliation to approve the measure without Republican votes.

According to CNN, “several independent analyzes point out that the approved measure could reduce US carbon emissions by up to 40% by 2030, and that it would take great efforts linked to the states for the government's goal of reducing emissions 50% by 2030, is achieved. The bill also contains many tax incentives meant to bring down the cost of electricity with more renewables, and spur more American consumers to switch to electricity to power their homes and vehicles. […] Democrats are also planning to extend the enhanced federal premium subsidies for Obamacare coverage in 2025, a year later than lawmakers recently discussed. That way, they wouldn't expire just after the 2024 presidential election”.

On Twitter, after the House Inflation Reduction Act was passed, Joe Biden celebrated: “Today, the American people won. […] With the passage of the Inflation Reduction Act in the House, families will see lower prescription drug prices, lower health care costs, and lower energy costs. I look forward to signing it into law next week”.

On the other hand, Republican Kevin McCarthy, House Minority Leader, said in his nearly 50-minute speech on the floor that “today the majority jams through another spending spree. Democrats more than any other majority in history are addicted to spending other people’s money”, according to La Prensa Latina publication.