August 9, 2022
The U.S. Senate voted on Sunday, August 7, to advance a sweeping climate and economic bill with the support of all 50 Democrats—bringing long-stalled elements of President Joe Biden’s agenda one step closer to reality, reports NBC News.
The procedural vote on the filibuster-proof package was 51-50, with all Republicans opposing the motion to begin debate and Vice President Kamala Harris casting the tie-breaking vote. The bill will be sent to the House in the coming days.
The legislation, called the Inflation Reduction Act, includes major spending to combat climate change and extend healthcare coverage, paid for with savings on prescription drugs and taxes on corporations. It puts hundreds of billions of dollars toward deficit reduction.
The procedural vote, during a rare weekend session, kicks off several hours of debate, followed by a “vote-a-rama”—a process in which senators can offer virtually unlimited amendments that require a simple majority of votes to adopt.
The legislation isn’t subject to the filibuster—it is being pursued through a special process called reconciliation, which allows Democrats to pass it on their own. But the process includes limits; policies included in the bill must be related to spending and taxes, and the legislation has to comply with a strict set of budget rules. It’s the same process Democrats used to pass the American Rescue Plan in 2021 and Republicans used to pass the Trump tax cuts of 2017.
Before Sunday’s vote, the Senate parliamentarian ruled that key Democratic provisions on clean energy and allowing Medicare to negotiate prescription drug prices passed muster and could be included in the inflation package, Democratic leaders said.
“While there was one unfortunate ruling in that the inflation rebate is more limited in scope,” Schumer said, “the overall program remains intact and we are one step closer to finally taking on Big Pharma and lowering Rx drug prices for millions of Americans.”
The Democrats-only package, which includes several pieces of Biden’s Build Back Better agenda, was long thought to be dead after Senator Joe Manchin (D-West Virginia), rejected a larger bill in December. He cut a deal last week with Schumer, pleasantly surprising many of his Democratic colleagues, and has since been on a media blitz to sell it.
“It’s a red, white and blue bill,” Manchin said recently on MSNBC, calling it “one of the greatest pieces of legislation” and “the bill that we need to fight inflation, to have more energy.”
Sinema forced Democrats to remove a provision that would have limited the carried interest tax break, which enables wealthy hedge fund and investment managers to pay a lower tax rate.
Instead, it was replaced by a new 1% excise tax on stock buybacks that is expected to bring in $74 billion—five times as much as the carried interest provision, Schumer said. Sinema also secured $4 billion in funding for drought prevention in Arizona and other western states.
Senator Lindsey Graham (R-South Carolina) said on Friday, August 5, that the amendment process would be unpleasant. “What will vote-a-rama be like? It’ll be like hell,” he said.
Research contact: @NBCNews