Senate passes $739bn healthcare and climate bill

Senate Democrats passed their climate and healthcare spending package, sending the legislation to the House and bringing Joe Biden one step closer to a significant legislative victory ahead of crucial midterm elections in November.

If signed into law, the bill, formally known as the Inflation Reduction Act, would allocate $369bn to reducing greenhouse gas emissions and investing in renewable energy sources. Experts have estimated the climate provisions of the bill will reduce planet-heating emissions in the US by about 40% by 2030, compared with 2005 levels

Democrats have promised the bill will lower healthcare costs for millions of Americans. Those who receive health insurance coverage through the Affordable Care Act marketplace are also expected to benefit from lower premium costs.

The legislation includes tax provisions to cover the costs of these policies, bringing in $739bn for the government and resulting in an overall deficit reduction of roughly $300bn. The policy changes include a new corporate minimum tax, a 1% excise tax on stock buybacks and stricter enforcement by the Internal Revenue Service.